Track market-moving stories before they get noisy

Capital One (COF) is rated Strong Buy with a $260 price target, 26% above current levels, driven by technology-led competitive advantages. COF's cloud-native infrastructure, AI leadership, and ownership of the Discover network position it for payments-grade returns on tangible equity. Despite low-20s% normalized ROTCE post-integration, COF trades at ~9.4x forward earnings and ~1.9x tangible book, a deep discount to peers like Amex.

Coastal Financial Corporation is rated a buy, leveraging a scalable Banking-as-a-Service (BaaS) model with 20+ fintech partners and accelerating fee-based growth. CCB's BaaS segment is driving over 30% net revenue growth, with management signaling continued expansion and disciplined partner onboarding. I assign CCB a $110 price target (19x PE, 0.7x PEG), reflecting its lower-risk, diversified fintech service profile and potential for 30%+ EPS growth.

Posted by Defense World Staff on Jul 23rd, 2026

Baader Bank Aktiengesellschaft cut its stake in Capital One Financial Corporation (NYSE:COF) by 70.6% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,247 shares of the financial services provider’s stock after selling 2,989 shares during the period. Baader Bank Aktiengesellschaft’s holdings in Capital One Financial were worth $226,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of COF. Brighton Jones LLC boosted its position in shares of Capital One Financial by 330.1% during the fourth quarter. Brighton Jones LLC now owns 13,587 shares of the financial services provider’s stock valued at $2,423,000 after purchasing an additional 10,428 shares in the last quarter. Intech Investment Management LLC lifted its position in Capital One Financial by 44.3% during the first quarter. Intech Investment Management LLC now owns 8,968 shares of the financial services provider’s stock valued at $1,608,000 after buying an additional 2,753 shares during the period. Sivia Capital Partners LLC lifted its position in Capital One Financial by 118.3% during the second quarter. Sivia Capital Partners LLC now owns 3,300 shares of the financial services provider’s stock valued at $702,000 after buying an additional 1,788 shares during the period. Flow Traders U.S. LLC bought a new stake in shares of Capital One Financial during the 2nd quarter valued at $218,000. Finally, Jump Financial LLC bought a new stake in shares of Capital One Financial during the 2nd quarter valued at $1,086,000. 89.84% of the stock is owned by institutional investors.

Key Capital One Financial News Here are the key news stories impacting Capital One Financial this week:

Positive Sentiment: Capital One beat Q2 estimates with adjusted EPS of $5.81 and revenue of about $15.8 billion, helped by stronger net interest income, higher revenues, and lower provisions for credit losses. Capital One’s Q2 Earnings Beat on Higher Revenues, Lower Provisions Positive Sentiment: Management said the Discover integration remains on schedule, synergies are being captured, and card growth could reaccelerate after platform migrations. COF Q2 Earnings Call Tracks Discover Integration Progress Positive Sentiment: Unusual options activity leaned bullish, with call buying running well above normal volume ahead of the earnings reaction. Neutral Sentiment: Some coverage framed the stock as a potential value play after solid consumer-credit results, but with investors still waiting for clearer signs on the outlook. Negative Sentiment: Shares are under pressure because the earnings beat was boosted by a sharp drop in provisions and a reserve release, while charge-offs remained elevated and integration-related expenses rose. Negative Sentiment: Deposits were weaker, and non-interest expense increased, which may temper enthusiasm about the durability of earnings momentum. Negative Sentiment: A New York lawsuit involving Zelle’s parent, Early Warning Services, could add headline risk for Capital One because COF is one of the seven bank owners, though the case is not directly about Capital One’s core operations. Zelle must face New York attorney general lawsuit over ‘rampant’ fraud, judge rules Insiders Place Their Bets In other news, General Counsel Matthew W. Cooper sold 3,500 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $208.00, for a total value of $728,000.00. Following the completion of the transaction, the general counsel owned 90,194 shares in the company, valued at $18,760,352. The trade was a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Celia Karam sold 1,749 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $192.58, for a total value of $336,822.42. Following the sale, the insider directly owned 61,579 shares in the company, valued at $11,858,883.82. This trade represents a 2.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 8,749 shares of company stock valued at $1,708,577. Corporate insiders own 0.78% of the company’s stock.

Wall Street Analyst Weigh In COF has been the topic of a number of recent research reports. Morgan Stanley reduced their target price on shares of Capital One Financial from $300.00 to $273.00 and set an “overweight” rating on the stock in a research report on Thursday, April 16th. Barclays dropped their price objective on shares of Capital One Financial from $242.00 to $240.00 and set an “overweight” rating on the stock in a research note on Wednesday. Evercore cut their price objective on shares of Capital One Financial from $265.00 to $222.00 and set an “outperform” rating on the stock in a report on Monday, April 6th. Royal Bank Of Canada decreased their target price on shares of Capital One Financial from $275.00 to $235.00 and set a “sector perform” rating for the company in a research note on Friday, April 10th. Finally, TD Cowen lowered their target price on shares of Capital One Financial from $260.00 to $253.00 and set a “buy” rating for the company in a report on Tuesday, July 7th. Twenty investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $259.82.

Read Our Latest Stock Report on Capital One Financial

Capital One Financial Stock Performance Shares of COF stock opened at $201.84 on Thursday. The company has a market capitalization of $125.60 billion, a price-to-earnings ratio of 12.49, a price-to-earnings-growth ratio of 0.75 and a beta of 1.02. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.03 and a current ratio of 1.03. Capital One Financial Corporation has a one year low of $174.24 and a one year high of $259.64. The company’s 50-day moving average is $194.79 and its 200 day moving average is $200.88.

Capital One Financial (NYSE:COF – Get Free Report) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $5.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.79 by $1.02. Capital One Financial had a net margin of 13.37% and a return on equity of 11.29%. The business had revenue of $15.83 billion during the quarter, compared to analysts’ expectations of $15.76 billion. During the same period in the previous year, the company earned $5.48 earnings per share. The business’s revenue for the quarter was up 26.9% compared to the same quarter last year. Sell-side analysts expect that Capital One Financial Corporation will post 19.54 EPS for the current fiscal year.

Capital One Financial Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Tuesday, May 19th were paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 1.6%. The ex-dividend date was Tuesday, May 19th. Capital One Financial’s dividend payout ratio (DPR) is currently 112.28%.

About Capital One Financial (Free Report)

Capital One Financial Corporation (NYSE: COF) is a diversified bank holding company headquartered in McLean, Virginia. The company’s core businesses include credit card lending, consumer and commercial banking, and auto finance. Capital One issues a wide range of credit card products for consumers and small businesses, and it operates deposit and digital banking services aimed at retail customers and small to midsize enterprises.

Products and services include credit and charge cards, checking and savings accounts (including the online-focused Capital One 360 platform), auto loans, and commercial lending solutions.

See Also Five stocks we like better than Capital One Financial Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding COF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Capital One Financial Corporation (NYSE:COF – Free Report).

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Highlights

Issuers are becoming more selective within credit tiers as they pursue growth across the credit spectrum.

New account growth remains strong, shifting the contest toward which cards consumers actually use once they are approved.

Private-label, co-branded and general-purpose cards are increasingly giving issuers different routes to the same consumer.

Capital One and Synchrony earnings results this week highlight a consumer credit market that is becoming more segmented: lenders are drawing finer distinctions within credit tiers, millions of new accounts are still being opened and card products are increasingly being matched to both a borrower’s credit profile and expected spending behavior.

Beyond the traditional measures of spending, balances and credit losses, the second-quarter earnings calls provide a closer view of how two of the largest card issuers are approaching consumers after several years of tightening, normalization and changes in household finances.

1. Prime Versus Subprime Capital One continues to originate across the spectrum, but its treatment of the Discover portfolio illustrates how much can differ among borrowers within broad credit categories. Discover expanded credit during 2022 and 2023 before reducing originations and credit-line increases beginning late in 2023. Since acquiring the company, Capital One has tightened further in areas where it is less comfortable with borrowers’ ability to withstand financial pressure, particularly among high-balance revolvers.

At the same time, Capital One is investing heavily at the other end of the market. Chairman and CEO Richard Fairbank said during the earnings call that the company continues to pursue its “heavy spender franchise at the top of the market,” while also pointing analysts toward its originated upmarket portfolio as a better comparison with issuers that do not deliberately originate subprime accounts.

PYMNTS Intelligence data shows why improving credit metrics do not erase pressure among subprime consumers. About 17% of U.S. consumers, or 44 million adults, are subprime, and 55% struggle to pay monthly bills. Yet their card behavior is changing: the share that always or usually revolves balances fell from roughly 50% in mid-2023 to 38% in January 2026, while 35% hold no credit or store card at all. For issuers, subprime remains a sizable market, but one increasingly defined by cash-flow pressure and changing credit use rather than FICO scores alone.

Synchrony has also experienced a change in its credit mix as it has added and renewed major partners. When an analyst asked about the implications of the portfolio moving toward higher-credit-quality consumers, CEO Brian Doubles said the company evaluates programs against its long-term return requirements, including newer and smaller programs.

A FICO score establishes an important measure of risk, but lenders also have to account for balance size, propensity to revolve, expected spending and the economics of acquiring and retaining that particular account.

2. Opening the Account Is Becoming Only Half the Job Synchrony generated more than 5.1 million new accounts during the second quarter and roughly 9.5 million to 10 million during the first half. CFO Brian Wenzel said that puts the company on a trajectory toward about 20 million new accounts for the year. The growth extends across partners and retail categories rather than depending on a single program.

Capital One next expansion could also come from Discover once the portfolio conversion is complete. Half of Discover’s new originations are already running on Capital One technology, with the front book expected to be fully converted by the end of the third quarter.

Digital Channels Raise the Stakes After Approval The large number of new accounts makes the post-approval relationship more consequential. PYMNTS Intelligence found that 70% of cardholders use their primary card’s mobile app and 69% say app quality influences which credit card becomes their most used card. That figure reaches 87% among Gen Z. Nearly one-third of app users said they increased spending on a card after adopting its app.

The digital channel therefore connects account acquisition to spending behavior. An issuer can approve a customer and still receive little economic value if another card captures most of that consumer’s transactions. Apps increasingly serve as the place where cardholders check balances, manage payments and rewards, and decide how actively to use the account.

3. One Consumer Can Now Fit Several Card Products The discussion on conference calls indicate that issuers are using different products to capture consumers with different credit and spending profiles.

Synchrony’s Lowe’s relationship provides a clear example. Its commercial co-branded card now operates alongside the retailer’s private-label program, creating another route for applicants who do not fit the underwriting requirements of the co-brand.

Wenzel said applicants who might otherwise receive nothing after applying for the co-brand can be “offered at least a private label card.”

The implications extend beyond Lowe’s. Private-label cards can be targeted around purchases with a particular retailer, while co-branded general-purpose cards can follow spending outside that merchant. Different underwriting criteria can consequently place consumers into different products rather than treating approval as a binary decision.

Capital One is approaching segmentation through its Discover integration. Fairbank said putting Discover originations onto Capital One technology will allow the company to deploy “full spectrum underwriting” alongside its spender capabilities, which it expects eventually to support more originations and purchase volume.

The earnings point toward a card business becoming more precise at several points in the consumer relationship. Issuers are differentiating more closely among borrowers, competing harder for spending after an account is opened and using multiple card products to accommodate different credit profiles.

Key Takeaways Capital One is 14 months into its 24-month Discover integration and on track for $2.5B in synergies. Discover's loan brownout may bottom in Q4 as front- and back-book migrations advance. Capital One sees a third-quarter NIM catch-up, while Brex delivers early funding and lead-sharing benefits. Capital One Financial Corporation (COF - Free Report) used its second-quarter 2026 earnings call to keep investors focused on integration execution rather than headline earnings. Management’s central message was that Discover and Brex are already contributing, while the bigger payoff still sits on the other side of platform conversions.

That framing mattered because the quarter mixed strong credit, revenue growth and an earnings beat against a still-temporary Discover loan “brownout,” elevated investment spending and a lower capital ratio.

Second-quarter net income was $3 billion, or $4.73 per share. Adjusted earnings per share (EPS) were $5.81 after acquisition-related items. Adjusted EPS topped the Zacks Consensus Estimate of $4.85. Revenues rose 4% from the first quarter to $15.85 billion, beating the consensus estimate of $15.7 billion.

Richard Fairbank, founder, chairman, chief executive officer and president, kept the emphasis on Discover integration. He said Capital One is now 14 months into its planned 24-month integration, has completed the conversion of Capital One debit customers to the Discover network and has already captured the full quarterly run-rate of debit revenue synergies.

He added that second-quarter results included about one-third of the announced operating expense synergies and that the company remains on track for the full $2.5 billion target. That kept the call centered on timing and execution rather than on revisiting the strategic logic of the deal.

Capital One Balances Brownout and GrowthA Barclays analyst pressed management on when Discover card growth should reaccelerate. Fairbank said the current slowdown reflects Discover’s prior cutbacks in originations and line management, plus Capital One’s own tighter approach in parts of the portfolio, especially around high-balance revolvers.

He described that pressure as temporary and laid out the conversion schedule in more concrete terms than in prepared remarks. Fairbank said 50% of Discover originations are already on Capital One’s tech stack, with full front-book migration expected by the end of the third quarter.

The back book will move in waves during July, October and January, with full migration expected in the first quarter of next year. Fairbank said the bottom of the brownout should come around the fourth quarter of this year, after which Capital One expects its underwriting and spender-focused capabilities to support a return to growth.

COF Sees Early Brex BenefitsBrex was the other major strategic topic. Responding to Barclays, Fairbank said the company is more than 100 days into ownership and remains highly encouraged by Brex’s position in corporate cards, its infrastructure and its talent base.

He said Brex is already benefiting from Capital One’s brand, lower funding costs on the balance sheet and a new lead-sharing program across businesses. Management characterized the early results from that pipeline as promising, though the broader marketing and product push will take more integration work.

Fairbank also said Brex capabilities should eventually strengthen Capital One’s small-business card offering. For now, he framed most of the work as foundational, with more visible commercial impact still ahead.

Capital One Points to NIM Catch-UpChief financial officer Andrew Young gave one of the clearest pieces of near-term operating commentary in the Q&A. He said second-quarter net interest margin rose to 8.01%, helped by lower retail deposit costs and lower average cash, but ending cash fell much faster than average cash during the quarter.

That led him to point to a third-quarter “catch-up” in margin as average balances reflect the lower ending cash position. He also reminded investors that each quarter in the back half of the year carries one additional day, worth a 9-basis-point tailwind to NIM.

Young kept the outlook measured by noting that balance-sheet changes and rate moves can still affect margin in the short run. Even so, his comments gave investors a more specific bridge into the next quarter than most other parts of the call.

COF Defends Investment-Led EfficiencyQuestions from KBW and Goldman Sachs focused on whether heavier spending could erode the economics of the Discover deal. Fairbank’s answer was consistent. Efficiency will remain pressured by technology, AI, Brex and travel investments, but management still expects earnings power after integration to align with what it outlined when the Discover deal was announced.

That stance was backed by operating context from the quarter. Total non-interest expense rose 7% sequentially to $9.0 billion, including an 11% increase in marketing, while Domestic Card expense rose 38% from a year earlier and companywide marketing climbed to about $1.7 billion.

Management did not offer a tighter efficiency target. Instead, Fairbank argued that the better way to judge the combined company is by the earnings power and growth capacity that should emerge once the integrations and tech investments mature.

Capital One Sticks to Long-Term PrioritiesCapital management added another layer of restraint. A Goldman Sachs analyst asked whether buybacks could step up now that the major deal work is done, but Young said the company still views 11% as a long-term capital need, not a target to rush toward.

He said that view reflects internal modeling, growth plans, earnings accretion, regulatory uncertainty, stock price and macro conditions. The quarter ended with a common equity Tier 1 ratio of 13.7%, down 70 basis points from the first quarter, after buybacks, Brex and higher risk-weighted assets.

Taken together, the call left a clear impression of a company willing to accept near-term noise in exchange for integration, distribution and technology gains it believes will define the next leg of returns.

Zacks Signals for COFCOF carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of C, Momentum Score of B and VGM Score of B, based on the provided Zacks data. That combination points to favorable value characteristics and decent all-around style traits, but a more neutral near-term earnings revision profile than a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Style Score framework indicates that stronger letter grades are generally associated with better expected performance, and that VGM scores of A or B can be useful complements to the Zacks Rank over the next one to three months. Still, the Zacks Rank can change as analysts revise earnings estimates after the quarter, so the current setup should be viewed as a snapshot rather than a fixed signal.

MCLEAN, Va.--(BUSINESS WIRE)--Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2026 of $3.0 billion, or $4.73 per diluted common share, compared with net income of $2.2 billion, or $3.34 per diluted common share in the first quarter of 2026, and with net loss of $4.3 billion, or $(8.58) per diluted common share in the second quarter of 2025. Adjusted net income(1) for the second quarter of 2026 was $5.81 per diluted common share. "Our results in.

Capital One Financial Corporation (COF) Q2 2026 Earnings Call July 21, 2026 5:00 PM EDT

Company Participants

Jeff Norris - Senior Vice President of Finance
Andrew Young - Chief Financial Officer
Richard Fairbank - Founder, Chairman, CEO & President

Conference Call Participants

Terry Ma - Barclays Bank PLC, Research Division
Sanjay Sakhrani - Keefe, Bruyette, & Woods, Inc., Research Division
Ryan Nash - Goldman Sachs Group, Inc., Research Division
Darrin Peller - Wolfe Research, LLC
Richard Shane - JPMorgan Chase & Co, Research Division
Robert Wildhack - Autonomous Research US LP
Donald Fandetti - Wells Fargo Securities, LLC, Research Division
John Pancari - Evercore ISI Institutional Equities, Research Division
Mihir Bhatia - BofA Securities, Research Division
L. Erika Penala - UBS Investment Bank, Research Division
Moshe Orenbuch - TD Cowen, Research Division

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Capital One Q2 2026 Earnings Call. Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jeff Norris, Senior Vice President of Finance. Please go ahead.

Jeff Norris
Senior Vice President of Finance

Thanks very much, Josh, and welcome, everyone. To access the live webcast of this call, please go to the Investors section of Capital One's website, capitalone.com. A copy of the earnings presentation, press release and financial supplement can also be found in the Investors section of Capital One's website by selecting financials and then quarterly earnings release.

With me this evening are Mr. Richard Fairbank, Capital One's Chairman and Chief Executive Officer; and Mr. Andrew Young, Capital One's Chief Financial Officer. Rich and Andrew are going to walk you through this presentation, summarizing our second quarter results for 2026.

Please note that this presentation may contain forward-looking statements. Information regarding Capital One's financial performance and any forward-looking statements contained

Fiserv’s Debit Network Talks Raise a Bigger Question for Visa and MastercardCapital One Financial NYSE: COF reported second-quarter 2026 earnings of $3 billion, or $4.73 per diluted common share, as management said the company continued to generate top-line growth while advancing its Discover integration and adding Brex to its domestic card business.

Chief Financial Officer Andrew Young said results included several adjusting items tied to the Discover and Brex acquisitions. Excluding those items, Capital One earned $5.81 per share. Revenue rose 4% from the first quarter, while non-interest expense increased 7%, producing 1% growth in pre-provision earnings. On an adjusted basis, pre-provision earnings were flat quarter over quarter.

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Synchrony’s Comeback Is Hiding in Plain SightThe company’s provision for credit losses declined $1.1 billion, or 27%, from the prior quarter to $3 billion. Young said the provision reflected $3.7 billion of net charge-offs and a $662 million allowance release, bringing the allowance balance to $23 billion. Capital One’s total portfolio coverage ratio fell 26 basis points to 5.02%.

Card Business Posts Growth, Credit Improves Chairman and Chief Executive Officer Richard Fairbank said Capital One’s domestic card business delivered “another quarter of top-line growth and strong credit results.” He noted that year-over-year comparisons now include Discover in period-end balances, while items such as purchase volume and revenue still reflect partial-quarter impacts from the acquisition.

Ally Financial Is Back to Basics—And Investors Are WatchingDomestic card purchase volume rose 26% year over year, primarily due to the addition of partial-quarter Discover volume. Fairbank said legacy Capital One purchase volume growth modestly accelerated, with additional tailwinds from Brex and a small legacy corporate card business that was moved from commercial banking into domestic card. Legacy Discover purchase volume grew just under 2%, while purchase volume for legacy Capital One businesses, including Brex and corporate card, rose about 14%.

Ending domestic card loan balances increased 2.6% year over year. Legacy Discover card loans declined 1.5%, which Fairbank said was in line with management’s expectations for a temporary “brownout” in Discover loan growth. Excluding Discover, ending loans rose about 5.3%.

Domestic card revenue increased 30% from the second quarter of 2025, largely reflecting the addition of Discover revenue. Excluding Discover, revenue rose 9.5%, driven mainly by organic growth in legacy Capital One purchase volume and loans. The domestic card charge-off rate was 4.71%, down 39 basis points from the first quarter and 54 basis points from a year earlier. The delinquency rate was 3.39%, down 31 basis points sequentially and 21 basis points year over year.

Discover Integration Remains on Track Fairbank said Capital One is 14 months into its planned 24-month Discover integration and that the process is “going well.” He said the company completed the conversion of Capital One debit customers to the Discover Network, and second-quarter results included the full quarterly run-rate debit revenue synergies from that milestone.

The company has realized about one-third of the quarterly run rate of announced operating expense synergies, Fairbank said, and remains on track to deliver the full $2.5 billion of announced synergies. In response to analyst questions, Young said operating expense synergies are more back-loaded and that Capital One remains on track to achieve the remaining operating expense synergies by the second half of 2027.

Fairbank said 50% of Discover originations are now on Capital One’s technology platform, with new originations expected to be fully on Capital One’s tech stack by the end of the third quarter. The Discover back book will move in waves, with major conversion activity beginning later in July and additional waves planned for October and January. Fairbank said the back book is expected to be fully on Capital One’s technology stack in the first quarter of next year.

Management said the Discover card loan growth brownout is temporary. Fairbank said Discover had dialed back origination programs and credit line management before the acquisition, and Capital One has made some additional trims in areas where it is less comfortable, particularly involving high-balance revolvers. He said those pullbacks have contributed to strong credit performance.

Consumer Banking, Auto and Commercial Trends In consumer banking, Fairbank said global payment network transaction volume was approximately $190 billion in the quarter. Network transaction volume increased 156% from the partial-quarter volume recorded in the second quarter of 2025, reflecting the Discover addition and the debit conversion. Sequentially, transaction volume rose about 9%.

Auto originations increased 19% from the prior-year quarter. Consumer banking ending loan balances rose $9.2 billion, or about 11%, year over year, while average loans also increased 11%. Ending consumer deposits grew about 5% from a year earlier, and average deposits rose 19%.

Consumer banking revenue rose about 26% year over year, driven mainly by the addition of partial-quarter Discover operations, Discover revenue synergies and growth in auto loans. Non-interest expense increased about 24%, reflecting Discover, higher marketing for the national consumer banking business, increased auto originations and technology investments. The auto charge-off rate was 1.43%, up 18 basis points year over year but down 21 basis points from the first quarter.

In commercial banking, ending and average loan balances each increased about 1% from the linked quarter. Ending deposits declined about 1%, while average deposits were essentially flat. The commercial banking net charge-off rate rose 24 basis points sequentially to 0.53%. The criticized performing loan rate declined to 4.4%, and the criticized non-performing loan rate decreased to 1.32%.

Liquidity, Margin and Capital Young said liquidity reserves ended the quarter at about $144 billion, down $21 billion from the prior quarter. Cash declined by about $22 billion to approximately $55 billion, primarily due to loan growth, wholesale funding maturities late in the quarter and the impacts from Brex. Capital One’s preliminary average liquidity coverage ratio was 165%, and its preliminary average net stable funding ratio was 136%.

Net interest margin was 8.01%, up 14 basis points from the first quarter. Young attributed nine basis points of the increase to one additional day in the quarter, with the remainder driven by a lower rate paid on retail deposits and a $5 billion decline in average cash balances.

Capital One’s common equity tier 1 capital ratio ended the quarter at 13.7%, down 70 basis points from the prior quarter. Young said $2.7 billion of share repurchases, an approximately 40-basis-point impact from the Brex transaction and an increase in risk-weighted assets more than offset quarterly net income.

Management Highlights Investment Priorities Fairbank said Capital One continues to invest in technology, data, artificial intelligence, premium card benefits, lounges, experiences, network acceptance and the buildout of a digital-first national bank. He said the company still expects earnings power after the Discover integration to be consistent with what it expected when the deal was announced, even after acquiring Brex and bringing in-house the technology supporting Capital One Travel.

On Brex, Fairbank said Capital One is “as excited as ever” more than 100 days after closing the deal. He said Brex is beginning to see early tailwinds from Capital One’s brand, balance sheet and lead-sharing efforts, while larger benefits will require technical integration and will be unlocked over time.

Asked about the consumer backdrop, Fairbank said the U.S. consumer and economy remain resilient. He said Capital One continues to see strong delinquency trends, high payment rates, healthy spending growth and stable revolve rates across major products and segments. He added that 2024 and 2025 card originations in legacy Capital One are performing better than 2022 and 2023 originations and are “a bit below pre-pandemic levels.”

About Capital One Financial (NYSE:COF)Capital One Financial Corporation NYSE: COF is a diversified bank holding company headquartered in McLean, Virginia. The company's core businesses include credit card lending, consumer and commercial banking, and auto finance. Capital One issues a wide range of credit card products for consumers and small businesses, and it operates deposit and digital banking services aimed at retail customers and small to midsize enterprises.

Products and services include credit and charge cards, checking and savings accounts (including the online-focused Capital One 360 platform), auto loans, and commercial lending solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Here’s a look at the details inside the print. 

COF stock is moving. Watch the price action here. Capital One reported quarterly earnings of $5.81 per share, which beat the consensus estimate of $4.77 by 21.8%, according to Benzinga Pro data.

Quarterly revenue came in at $15.85 billion, which beat the Street estimate of $15.77 billion and was up 26.88% from $12.492 billion in the same period last year.   

Capital One gave the following second quarter income statement summary:

“Our results in the second quarter continue to reflect solid top line growth and strong credit performance,” said Richard D. Fairbank, founder and CEO. “We’re now 14 months into our integration of Discover, and integration is going well.”

COF Stock Price Activity: According to data from Benzinga Pro, Capital One shares were up 0.37% to $206.98 in Tuesday’s extended trading.  

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Capital One (COF - Free Report) came out with quarterly earnings of $5.81 per share, beating the Zacks Consensus Estimate of $4.85 per share. This compares to earnings of $5.48 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +19.79%. A quarter ago, it was expected that this credit card issuer and bank would post earnings of $4.61 per share when it actually produced earnings of $4.42, delivering a surprise of -4.12%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Capital One, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $15.85 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $12.49 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Capital One shares have lost about 14.7% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Capital One?While Capital One has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Capital One was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.50 on $16.05 billion in revenues for the coming quarter and $19.54 on $63.43 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Enova International (ENVA - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 23.

This online financial services company is expected to post quarterly earnings of $3.99 per share in its upcoming report, which represents a year-over-year change of +23.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Enova International's revenues are expected to be $904.46 million, up 18.4% from the year-ago quarter.

Capital One Financial Corporation (NYSE:COF) will release its second quarter earnings report after the closing bell on Tuesday, July 21.

Analysts expect the McLean, Virginia-based company to report quarterly earnings of $4.74 per share, down from $5.48 per share in the year-ago period. The consensus estimate for Capital One Financial’s quarterly revenue is $15.77 billion. It reported $12.49 billion last year, according to Benzinga Pro.

On June 25, Capital One and Junior Achievement of Canada announced the launch of a national partnership to invest in youth financial literacy.

Capital One Financial shares fell 0.6% to close at $206.77 on Monday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying COF stock? Here’s what analysts think:

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Posted by Defense World Staff on Jul 18th, 2026

Allspring Global Investments Holdings LLC grew its holdings in shares of Capital One Financial Corporation (NYSE:COF – Free Report) by 4.7% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 660,130 shares of the financial services provider’s stock after buying an additional 29,835 shares during the period. Allspring Global Investments Holdings LLC owned 0.11% of Capital One Financial worth $121,794,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Evolution Wealth Management Inc. raised its stake in shares of Capital One Financial by 529.4% during the fourth quarter. Evolution Wealth Management Inc. now owns 107 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 90 shares in the last quarter. VSM Wealth Advisory LLC acquired a new stake in shares of Capital One Financial in the 4th quarter worth approximately $27,000. Cherry Tree Wealth Management LLC lifted its stake in shares of Capital One Financial by 1,312.5% in the 4th quarter. Cherry Tree Wealth Management LLC now owns 113 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 105 shares during the period. Strive Asset Management LLC bought a new position in shares of Capital One Financial in the third quarter valued at approximately $28,000. Finally, Frazier Financial Advisors LLC acquired a new position in shares of Capital One Financial during the first quarter valued at approximately $29,000. 89.84% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling In other Capital One Financial news, insider Celia Karam sold 1,749 shares of Capital One Financial stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $192.58, for a total value of $336,822.42. Following the completion of the sale, the insider directly owned 61,579 shares in the company, valued at $11,858,883.82. The trade was a 2.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Matthew W. Cooper sold 3,500 shares of the business’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $208.00, for a total transaction of $728,000.00. Following the completion of the sale, the general counsel directly owned 90,194 shares of the company’s stock, valued at $18,760,352. This represents a 3.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,749 shares of company stock worth $1,708,577 in the last 90 days. 0.78% of the stock is currently owned by corporate insiders.

Capital One Financial News Roundup Here are the key news stories impacting Capital One Financial this week:

Positive Sentiment: Capital One is getting a wave of supportive analyst coverage, with multiple firms reportedly reaffirming or raising bullish views, and the stock has been described as having a “Moderate Buy” consensus rating. Capital One Financial Corporation (NYSE:COF) Receives Consensus Rating of “Moderate Buy” from Analysts Positive Sentiment: Capital One launched up to $500 in Spark business travel credits, a small but potentially helpful move to boost card usage, attract business customers, and deepen engagement with its travel ecosystem. Capital One (COF) Unveils Up To $500 In Spark Business Travel Credits Positive Sentiment: Several articles highlighted COF as a long-term momentum name and suggested it may be positioned to benefit from AI, reinforcing the idea that investors see upside from technology adoption and operational efficiency. Is Capital One Financial Corp (COF) Positioned to Benefit from AI? Neutral Sentiment: Wall Street is focused on COF’s upcoming second-quarter results, with expectations that card loans, net interest income, and fee income helped offset higher provisions and expenses. The setup is mixed, so earnings could be a stock driver in either direction. Card Loans, Fee Income to Support COF Q2 Earnings, Provisions to Hurt Neutral Sentiment: Valuation commentary remains divided: some articles argue the stock could still be undervalued on intrinsic value, while traditional earnings multiples look less compelling after a strong multi-year run. Is Capital One Financial (COF) Trading At A Discount Or A Premium? Negative Sentiment: Capital One is still dealing with legacy legal overhang from the 2019 data breach, as a Canadian class action settlement has been proposed pending court approval, which keeps litigation risk in view. CAPITAL ONE 2019 DATA BREACH CLASS ACTION Analysts Set New Price Targets Several brokerages have recently weighed in on COF. TD Cowen decreased their target price on Capital One Financial from $260.00 to $253.00 and set a “buy” rating for the company in a research note on Tuesday, July 7th. Wells Fargo & Company dropped their price target on shares of Capital One Financial from $280.00 to $260.00 and set an “overweight” rating on the stock in a research report on Thursday, April 9th. Rothschild & Co Redburn cut their price target on shares of Capital One Financial from $290.00 to $275.00 and set a “buy” rating for the company in a report on Wednesday, April 29th. Argus cut their price target on shares of Capital One Financial from $260.00 to $250.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Capital One Financial in a research report on Wednesday, June 24th. Twenty analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $259.91.

Get Our Latest Analysis on Capital One Financial

Capital One Financial Stock Down 1.8% Capital One Financial stock opened at $208.04 on Friday. Capital One Financial Corporation has a twelve month low of $174.24 and a twelve month high of $259.64. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market cap of $129.46 billion, a PE ratio of 73.00, a P/E/G ratio of 0.77 and a beta of 1.02. The firm’s 50 day moving average price is $193.48 and its two-hundred day moving average price is $201.99.

Capital One Financial (NYSE:COF – Get Free Report) last issued its earnings results on Tuesday, April 21st. The financial services provider reported $4.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.08 by ($0.66). Capital One Financial had a net margin of 4.29% and a return on equity of 10.59%. The company had revenue of $15.23 billion for the quarter, compared to analyst estimates of $15.68 billion. During the same period last year, the business earned $4.06 EPS. The company’s quarterly revenue was up 52.3% on a year-over-year basis. On average, research analysts predict that Capital One Financial Corporation will post 19.56 EPS for the current fiscal year.

Capital One Financial Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Tuesday, May 19th were paid a $0.80 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $3.20 annualized dividend and a dividend yield of 1.5%. Capital One Financial’s payout ratio is presently 112.28%.

Capital One Financial Company Profile (Free Report)

Capital One Financial Corporation (NYSE: COF) is a diversified bank holding company headquartered in McLean, Virginia. The company’s core businesses include credit card lending, consumer and commercial banking, and auto finance. Capital One issues a wide range of credit card products for consumers and small businesses, and it operates deposit and digital banking services aimed at retail customers and small to midsize enterprises.

Products and services include credit and charge cards, checking and savings accounts (including the online-focused Capital One 360 platform), auto loans, and commercial lending solutions.

Further Reading Five stocks we like better than Capital One Financial AST SpaceMobile Stock Sinks as SpaceX Fallout Rattles Space Sector Aehr Test Systems Stock Soars on Earnings, Eyes Over 150% Revenue Growth TSMC Just Gave AI Chip Bulls Another Reason to Stay Confident GE Aerospace Faces a Prove-It Moment in Q2 Earnings

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Key Takeaways Capital One's Q2 revenues are estimated to rise 25.7% y/y to $15.7 billion.COF's NII is projected to climb 24.8%, supported by earning-asset growth and card operations.Higher provisions, operating costs and acquisition-related expenses may weigh on COF's earnings. Capital One (COF - Free Report) is scheduled to announce second-quarter 2026 results on July 21, after market close.

The company’s to-be-reported quarter’s performance is expected to have been driven by its solid credit card business and the positive effects of the Discover Financial acquisition (completed in May 2025). As such, the Zacks Consensus Estimate for revenues is pegged at $15.7 billion, which indicates year-over-year growth of 25.7%.

In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised 4.3% higher to $5.08. Nonetheless, the estimate indicates a 7.3% fall from the prior-year quarter. This is likely to be due to higher provision charges and an increase in operating expenses.

Estimate Revision Trend
 

Image Source: Zacks Investment Research

COF does not have an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in only two of the trailing four quarters and lagged in other two, the average beat being 18.58%.

Earnings Surprise History
 

Image Source: Zacks Investment Research

Major Factors at Play for Capital One’s Q2 ResultsNet Interest Income (NII): The Federal Reserve has paused rate cuts and signaled a hike later in the year amid higher inflation and a volatile macro backdrop. This followed a 175-basis-point cut in the last two years.

The overall lending scenario was impressive in the second quarter. Per the Federal Reserve’s latest data, the demand for consumer loans was solid. The Zacks Consensus Estimate for total average earning assets is pegged at $614.3 billion, implying a 17% rise from the prior-year quarter.

This, along with stable rates and decent economic growth, is expected to have helped Capital One’s NII growth. Also, the company’s continued efforts to strengthen its card operations are expected to have provided support. The consensus estimate for NII of $12.47 billion indicates 24.8% year-over-year growth.

Fee income: Supported by an overall rise in credit card usage and the Discover Financial buyout, Capital One’s interchange fees (constituting more than 60% of fee income) are likely to have increased in the quarter under review. The Zacks Consensus Estimate for interchange fees is $2.16 billion, suggesting a 46.3% year-over-year jump.

The consensus estimate for service charges and other customer-related fees of $853.7 million implies a 29.7% year-over-year rise. The Zacks Consensus Estimate for other non-interest income is pegged at $378.4 million, indicating a 4.8% rise.

Thus, the consensus estimate for total non-interest income of $3.21 billion indicates a jump of 28.4% from the prior-year quarter.

Expenses: Capital One has been witnessing a persistent rise in expenses over the past several quarters due to higher marketing costs and investment in technology upgrades. The Discover Financial and Brex acquisitions, along with inflation pressure, are expected to have resulted in an increase in operating expenses in the second quarter.

Asset Quality: Capital One is likely to have set aside a significant amount of money for potential delinquent loans, as the interest rates have been unchanged and there has been a steady rise in credit card loan demand.

Given the current macro backdrop and higher inflation, because of the Middle East conflict and the oil price shocks, borrowers are likely to have faced problems in keeping up with loan repayments. Hence, credit costs for COF are likely to have risen in the to-be-reported quarter.

Notable Development for Capital One in Q2In April, Capital One completed the acquisition of Brex for approximately $2.56 billion in cash and issued nearly 10.7 million shares of its common stock. This will significantly strengthen the company’s strategic expansion into the business payments and AI-driven financial software space.

Brex is a leading AI-native financial platform that integrates corporate cards, expense management software and banking services into a single ecosystem. Its platform leverages AI to automate workflows, streamline expense reviews and enable secure, real-time payments for businesses.

By integrating Brex’s AI-powered capabilities, COF is expected to enhance innovation in corporate payments and spend management, enabling businesses to operate with greater speed, control and efficiency through automated workflows, real-time visibility and reduced manual processes.

What Our Quantitative Model Unveils for COFAccording to our quantitative model, the chances of Capital One beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Capital One is +1.54%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Capital One’s Price PerformanceIn the second quarter, COF shares gained 10%, underperforming the Zacks Consumer Loans industry. Its peers Ally Financial (ALLY - Free Report) and Navient Corporation (NAVI - Free Report) have rallied 17.2% and 4.1%, respectively.

2Q26 Price Performance
 

Image Source: Zacks Investment Research

Ally Financial is scheduled to announce second-quarter 2026 numbers on July 21, whereas Navient is set to report on Aug. 8.

Over the past week, the Zacks Consensus Estimate for Ally Financial’s second-quarter 2026 earnings has been revised lower to $1.24. The consensus estimate for Navient has been unchanged at 18 cents over the past seven days. At present, both ALLY and NAVI carry a Zacks Rank #3.

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Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

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Stock to Watch: Capital One (COF - Free Report) Headquartered in McLean, VA, Capital One Financial Corporation was founded in 1988 and focuses primarily on consumer and commercial lending, along with deposit origination. The company offers a wide range of financial products and services to consumers, small businesses, and commercial clients across the United States through its banking and non-banking subsidiaries.

COF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. COF has a Momentum Style Score of A, and shares are up 4% over the past four weeks.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.48 to $20.03 per share. COF boasts an average earnings surprise of +18.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, COF should be on investors' short list.

Capital One (COF +0.71%) is best known for issuing credit cards. However, it demonstrated that it had wider aspirations when it bought Discover, a payment processing company. Although the merger is complete, the integration process is still a work in progress. July 27 will be a big date to watch, since that's when some Discover products will start being integrated into Capital One's back end.

Finance is hard, technically speaking The finance industry is highly regulated. The technology that supports financial businesses is complex, and each company typically has a proprietary system. Mistakes that affect customers are frowned upon by both customers and regulators. This is why July 27 is so important for Capital One shareholders to watch.

Image source: Getty Images.

While Discover cards will still exist in name, that is when they will start being supported by the Capital One back end. Strong execution will be vital, and it is highly likely that Capital One's tech team is under significant pressure to ensure a smooth cutover. If the transition process goes poorly, Capital One risks losing Discover customers.

However, there's another problem to consider, even if the cut over is flawless. If Discover cardholders don't like the Capital One back end, they might leave. So this isn't just a technical issue; it's also a product issue for the bank. To be fair, Capital One isn't making massive changes to Discover products, but it is making some changes, and more are likely in the future. One possible headache for cardholders is that new cards will be issued for authorized users, with the cards going to the primary account holder. This is being done to protect customers, but it means the primary account holder has to distribute the new cards. Capital One shareholders should probably pay extra attention over the next couple of quarters.

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Capital One has a big opportunity This is the first real test of Capital One's acquisition of Discover. If it goes well, there could be a very bright future ahead. Not only will Capital One have successfully entered the transaction processing business, but it will have added millions of new credit card relationships. If Capital One can retain those relationships, it opens up additional cross-selling opportunities for the bank and card issuer.

As noted, the problem is that the computer systems that support financial businesses are highly complex. So don't underestimate the difficulty and importance of the July 27 transition. Hopefully, Discover customers won't see much of an impact, but if they do, this merger could be far less beneficial than hoped.

Life's becoming increasingly expensive. That's the big takeaway from the U.S. Bureau of Labor Statistics' measure of May's inflation. Led by higher energy costs, consumer prices were up a hefty 4.2% year over year, rising at a pace last seen in April 2023. Prices are expected to remain similarly elevated for the foreseeable future too. And it's not just in the U.S. Inflation is up on worldwide as well.

It's a problem for the global economy, of course, and in particular, a risk to credit card lenders. Consumers here and abroad are racking up more and more credit card debt, not because rising income is giving them the confidence to splurge, but because they increasingly need to finance life's basic needs like groceries. For perspective, the Federal Reserve reports credit card debt among U.S. borrowers ended the first quarter at a near-record $1.25 trillion, up 5.9% from the year-earlier comparison.

Cracks are starting to show too -- some modest and some not. One of the not-modest red flags is the fact that an 18-year high 13.2% of credit card accounts are now at least 90 days delinquent on their payments.

And this raises the question: Which credit card stocks will be the first to show signs of this economic strain?

Unequal distribution of growing subprime loan risk The knee-jerk answer might be names like Visa (V 1.29%) and Mastercard (MA 2.20%) simply because these two companies are so dominant in the industry. They aren't though. As operators of payment networks, they're simply intermediaries, charging merchants a small toll every time a consumer uses a card for a purchase. Indeed, Mastercard and Visa are arguably benefiting from increased use of credit cards to purchase more basic consumer goods.

The real risk stacking up here, rather, is borne by the underlying card issuers, who supply the money upfront to fund a purchase that's (hopefully) paid back later, with interest.

These issuers come in all shapes and sizes, and are often banks. Bank of America's (BAC 2.61%) total credit card balances outstanding as of the end of Q1, for instance, were up 3.1% year over year, while Wells Fargo's (WFC 1.86%) were up 6%. Neither of these banks is reporting a rise in delinquencies and charge-offs though, at least not yet. And they may not at all. In fact, both are showing some modest improvement of these measures.

Rather, the outfits most threatened by the impact of higher consumer prices are the so-called subprime lenders and the credit card issuers.

Capital One Financial (COF 5.50%) is arguably the biggest and best-known subprime credit card issuer. Although the lender doesn't officially designate itself as such, it does disclose that about a fourth of its cardholders have FICO scores of 660 or less, which indirectly indicates a less-than-perfect payment history and/or below-average incomes, and/or a limited credit history.

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Like Wells Fargo and Bank of America, Capital One's credit delinquencies actually fell in Q1 ending in March, sequentially as well as year over year.

That was before the recent surge of inflation, however, which didn't start picking up until March and didn't explode until April and May. With a full quarter's worth of higher prices now in the books, Capital One's Q2 delinquencies and charge-offs could jump.

That's probable, in fact, given the anecdotal hints that subprime borrowers are suddenly starting to struggle. Standard & Poor's reports 60-day-plus delinquencies for subprime automobile loans rose 37 basis points in May to 6%, extending a trend that's been in place for several months within and outside of the car loan business.

Another name that's particularly vulnerable to the fallout from lingering inflation is lender Synchrony Financial (SYF 9.61%).

You could be a customer without even realizing it. Synchrony often is the lender behind store-issued credit cards, although it also issues its own plastic. Its loan portfolio also includes ordinary installment loans, often to support the purchase of bigger-ticket items like motorcycles, HVAC systems, and more. It's not a subprime lender per se, although it's a lender with a sizable portion of its customer base (more than a fourth) with credit scores of less than 650. If this swath of consumers is forced to shoulder any more financial burden, the payment delinquency cracks that aren't quite yet showing up in its loan portfolio could appear in a hurry.

Image source: Getty Images.

Census Bureau data analyzed by Goldman Sachs suggests that as of April, thanks to rising inflation, the bottom-earning quintile of U.S. households -- households that are more likely to be subprime borrowers -- are now forecast to have just a 0.8% increase in their 2026 disposable cash flow. That's down from an estimated gain of 3.2% as recently as January. For perspective on that figure, Goldman says disposable cash flows for U.S. households of all incomes are still expected to improve by an average of 3.7% this year.

This should be concerning to shareholders of lenders with significant exposure to the subprime credit market.

Serious enough to distinguish prospects from one another These aren't the only lenders facing above-average risk of subprime borrowers' mounting struggles. Bread Financial (BFH 8.33%) could soon hit a wall as well. It's also worth noting that while Capital One and Synchrony's customer bases include more potentially distressed borrowers than those of conventional banks like BofA or Wells Fargo, all of these lenders have some exposure to such borrowers. And just because a borrower is considered prime or better doesn't necessarily mean they will be able to continue making payments on their loans balances. Everyone's in the same economic boat. It doesn't take too much delinquency trouble to do some serious damage to any lender's stock.

If you're looking for a credit card outfit with proven resiliency, consider a stake in American Express (AXP 3.79%), which tends to serve a more affluent customer base that can better withstand economic pressures. Its modest past-dues and charge-offs didn't budge in Q1. Moreover, as Chief Financial Officer Christophe Le Caillec commented during April's Q1 earnings conference call, "retail spending kept up its momentum, up 11% FX‑adjusted. And spending at luxury retail merchants was up 18%, reflecting the continued strength of our premium customer base."

Connect the dots. This contrast is real enough to merit picking one of these aforementioned names over another.

Sen. Elizabeth Warren is asking Eric Trump to confirm whether his family will resume legal action against Capital One over allegations it de-banked family-linked accounts, The Post has learned.

MCLEAN, Va.--(BUSINESS WIRE)--Capital One Financial Corporation (NYSE: COF) posted a summary of its company-run stress test results on its website (www.capitalone.com). This summary shows the results of Capital One’s modeling of the severely adverse scenario published by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). From the home page, select “About” choose “Investors” to access the Investor Center, select "Financials," and then choose “Stress Test Results” to view the current summary.

As announced by the Federal Reserve in February 2026, the Federal Reserve is maintaining the stress capital buffer requirements (“SCB”) for all participating firms at their current levels until September 30, 2027. Consequently, absent further action from the Federal Reserve, the Company’s SCB will remain at 4.5% until September 30, 2027. As a reminder, the 4.5% SCB was calculated prior to the close of the Discover acquisition and therefore is based on stand-alone Capital One.

Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as "will," "anticipate," "target," "expect," "think," "estimate," "intend," "plan," "goal," "believe," "forecast," "outlook" or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this press release, see the risk factors set forth under "Part I—Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC") and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One
Capital One Financial Corporation (NYSE: COF) is a leading technology-based financial services company with $489.1 billion in deposits and $682.9 billion in total assets as of March 31, 2026. Headquartered in McLean, Virginia, the company operates as a premier global payments provider and diversified financial institution, delivering a broad suite of products and consumer lifestyle and shopping experiences through its Credit Card, Consumer Banking including its Global Payment Network, and Commercial Banking lines of business. As the only major U.S. bank to migrate entirely to the public cloud, Capital One leverages proprietary data and advanced analytics to democratize financial tools across its primary markets in the United States, Canada, and the United Kingdom.

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Databolt Connect empowers secure, multi-party data sharing powered by Databricks Apps and Clean Rooms

SAN FRANCISCO--(BUSINESS WIRE)--Databricks Data + AI Summit – Capital One Software, the enterprise B2B software business of Capital One, today announced Databolt Connect, a purpose-built, lightweight application that facilitates secure, multi-party data collaboration in Databricks. Available in the Databricks Marketplace, an open marketplace for data, analytics, and AI, powered by OpenSharing, Databolt Connect provides privacy-preserving linking of sensitive datasets to enable groundbreaking research and analytics.

“Across the board, organizations make impossible tradeoffs across regulatory compliance, security and the sharing data needed to grow their business,” said Prashant Prahlad, SVP, Product, Capital One Software. “By expanding our collaboration capabilities in Databolt and launching it on Databricks Marketplace, we’re enabling organizations to protect sensitive data assets natively within Databricks. This allows our customers to safely unlock the full potential of their data and accelerate collaboration, balancing the drive for innovation with a strong commitment to security and compliance."

For example, Health and Life Sciences (HLS) organizations possess highly sensitive data that could power breakthrough discoveries and innovation. However, this raw data often cannot be shared due to privacy regulations, as well as security and competitive risks. With the Databolt Connect App on Databricks Marketplace, users can securely prepare and link datasets within Databricks Clean Rooms without raw data ever leaving their environment. By eliminating the need to expose sensitive data, it helps organizations maintain compliance and security.

Key capabilities of Databolt Connect include:

Zero-Trust and Native to Databricks: The data preparation, tokenization, and secure linking process executes exclusively within an organization’s controlled Databricks instance. The architecture is designed so that raw, sensitive data never leaves the customer’s environment and is not exposed to any third party, helping organizations strengthen security, privacy and compliance controls. Data Protection for HIPAA Regulated Data: The app allows for the application of customizable rules, including one-way, irreversible tokenization and generalization, for example, converting dates to year-only and full ZIP codes to 3-digit prefixes. These features are designed to generate unique, client-specific encrypted tokens that support secure record linkage and can support HIPAA de-identification workflows. Secure Record Linking: Multiple parties can bring their tokenized data into a shared Databricks Clean Room. Databolt Connect securely joins these datasets using the protected tokens, enabling high-value joint analysis while maintaining privacy for sensitive identifiers. Customers consistently ask us for easier, more secure ways to discover, access, and share data and AI assets across their organizations and ecosystems," said Stephen Orban, SVP, Product Ecosystem & Partnerships at Databricks. "By bringing Capital One Software's Databolt Connect app to the Databricks Marketplace, we're helping our joint customers, such as in Health and Life Sciences, collaborate on their data with confidence — accelerating innovation and unlocking more value from their data on an open, governed platform."

Learn more about the latest Databolt and Slingshot innovations by visiting Capital One Software at Booth #202 at Databricks Data & AI Summit, June 16-18, 2026, in San Francisco, CA.

About Capital One Software
Capital One Software, the enterprise B2B software business of Capital One, enables organizations to scale their data management capabilities and better harness the power of AI. Backed by 25 years of data innovation, Capital One Software solutions are helping customers overcome key data management challenges in the cloud, including cost performance, infrastructure management and data security. Capital One Software is based in McLean, Virginia, at Capital One's headquarters. To learn more, go to: www.capitalone.com/software

About Capital One
Capital One Financial Corporation (NYSE: COF) is a leading technology-based financial services company with $475.8 billion in deposits and $669.0 billion in total assets as of December 31, 2025. Headquartered in McLean, Virginia, the company operates as a premier global payments provider and diversified financial institution, delivering a broad suite of products and consumer lifestyle and shopping experiences through its Credit Card, Consumer Banking including its Global Payment Network and Commercial Banking lines of business. As the only major U.S. bank to migrate entirely to the public cloud, Capital One leverages proprietary data and advanced analytics to democratize financial tools across its primary markets in the United States, Canada and the United Kingdom.

Forward-Looking Statements
This press release contains forward-looking statements regarding Capital One Software’s future product plans and strategy. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. Factors such as technical challenges, market shifts, or changes in resource allocation may result in some features being delayed, modified, or not released at all. Capital One Software assumes no obligation to update these forward-looking statements as circumstances change.

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Capital One is rated buy as the Discover integration creates scale, despite a 27% YTD stock decline. COF now commands a 24% credit card revenue share, surpassing Visa and Mastercard standalone, with efficiency ratio improvements expected. Credit risk remains the key concern, but delinquency and net charge-off ratios are stabilizing post-Discover, supporting a positive outlook.

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A $10 million exchange held for the full 180 days earns approximately $147,000 in interest, paid directly to the investor.

MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--Current 1031, a Qualified Intermediary (QI) founded by veteran real estate and finance professionals, today announced a 3% interest rate on all client exchange funds, with no size tiers or minimums. Interest is generally paid at the conclusion of the exchange.

A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting sale proceeds into a like-kind replacement property within 180 days. During that period, exchange funds are held by a Qualified Intermediary. At a 3% interest rate, a $10 million exchange held for the full 180-day period would accrue approximately $147,000 in interest; a $25 million transaction would accrue approximately $369,000 over the same window. Current 1031 charges a flat fee of $1,500 per exchange with no hidden costs.

“Every dollar sitting in an exchange account should be working for the investor, not sitting idle,” said Brad Wetherby, co-founder of Current 1031. “With 3% interest on exchange funds, we are putting real, meaningful money back into the hands of our clients.”

A Resource Built for Real Estate Brokers and Advisors

For most real estate brokers, the QI conversation happens at the end of a transaction. Current 1031 moves that conversation to the beginning. When a broker introduces a QI that provides a 3% interest rate on exchange funds, that broker provides a quantifiable benefit to the client that strengthens the broker’s advisory relationship.

About Current 1031

Current 1031, LLC is a Qualified Intermediary facilitating IRC Section 1031 like-kind exchanges nationwide. The firm holds all exchange funds in segregated accounts at a major institution and pays 3% interest on every client exchange, with no size tiers or minimums. Founded by veteran real estate and investment professionals, Current 1031 combines institutional-grade fund security, experienced guidance, and flat-fee pricing. Learn more at current1031.com.

Disclaimer: Current 1031 does not provide legal or tax advice. Investors should consult their own tax and legal advisors regarding 1031 exchanges and related matters. Interest rates are subject to change.

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Capital One Financial (COF) offers five series of preferred stocks, all rated BB, with yields around 6.6% and strong dividend coverage. COF's robust Tier 1 capital ratio and 19.8x equity-to-preferred coverage indicate minimal default or dividend risk for preferred holders. Net income covers preferred dividends by 10.3x, supporting income reliability even if net interest margins decline.

The head of one of the nation's largest auto finance lenders isn't overly concerned about rising consumer automotive debt and inflated used car prices leading to longer loans on vehicle purchases.

His main reasoning? The percentage of income consumers are spending on their vehicles has remained relatively flat compared with 2019, before the coronavirus pandemic led to inflated pricing as demand surged but inventories stayed low.

"If I just told you, 'Car prices going up, interest rates going up, insurance prices going up,' you would say, 'You know what, consumers must be paying more as a ratio to the income,'" Capital One Auto President Sanjiv Yajnik told CNBC. "However, if you look at every quintile of salary and earnings of people, the payment-to-income ratio has remained fairly flat."

While Capital One reports median monthly car ownership payments have jumped from $390 to $525 since 2019, data provided exclusively to CNBC from its automotive unit suggest that vehicle costs have stayed relatively stable compared with income. That's because, overall, the payment-to-income ratio has remained flat at approximately 10% since 2019, according to the automotive arm of the American bank.

Capital One Auto found 80% of car purchasers who finance a vehicle are below the generally recognized payment to income threshold of 15%.

"The consumer is being cautious. They're being responsible. This is a much healthier way to do things than the alternative, because it's not a discretionary spend," said Yajnik, referring to consumers prioritizing vehicle payments for transportation, including work.

To get to that goal, however, more consumers are taking on longer loans to keep payments affordable.

The auto finance veteran's view contrasts with others in the industry who view the longer term loans as a detriment to consumers' pocketbooks.

They argue that so-called "forever loans" of six years or more have led to many buyers, particularly of new vehicles, being underwater on the equity of their cars and trucks. That means they owe more than their vehicle is worth when they decide to trade it in.

Edmunds reports roughly 26% of used vehicles purchased that involved a trade-in vehicle had negative equity this year through April. The amount of negative equity averaged $5,105, a 35% increase from 2019.

"As loan term lengths increase on average, the pace at which consumers make progress paying down their balance slows," Jessica Caldwell, head of insights for CarMax's Edmunds, wrote in a recent online post. "If consumers then trade in their vehicle too soon for any reason, they are increasingly left holding more loan debt."

Regarding financing for new vehicles during the first quarter, 90.2% of new vehicle loans involving trade-ins with negative equity carried terms of at least 72 months, and 43% extended to 84 months, according to Caldwell. The average negative equity trade-in was $7,183 during the quarter for new vehicles, according to Edmunds.

Those figures have been climbing since 2022, when inflated used vehicle values caused by a pandemic-fueled chip shortage insulated more shoppers from carrying debt into their next vehicle.

Consumers need to keep their vehicles for more time to make the long loans worth it, according to Yajnik. But that can also cause increases in maintenance costs as well as the likelihood that a vehicle needs repairs that exceed its value or has to be scrapped altogether.

"Yes, it takes longer to get your equity, but in the meantime, you get a use of the car, and you're earning money," said Yajnik, a 28-year veteran of Capital One who has led the automotive lending division since 2008.

The average listed price of a used vehicle was $25,390 in March, according to Cox's most recent data. That compares to new vehicles, which depreciate faster, at $48,667.

Cox Automotive reports if all other things are equal on a loan, financing for a $30,000 vehicle at a 9% annual percentage rate would cost $3,100 more on an 84-month term than a 48-month loan. However, there's a $264 difference in the monthly payments, which Yajnik said makes it more affordable for many consumers, especially those in lower income brackets.

"There's obviously going to be pockets that have problems, but one has to start from a different place, which is, for which reason are people buying cars, and are they doing so irrationally?" Yajnik said.

© Pormezz / Shutterstock.com

A listener named Suzanne from Austin wrote into the How to Money podcast with a question I think a lot of points-and-miles people quietly wrestle with: she earns “several thousand dollars every year” from cashback cards, signup bonuses, drugstore and grocery store points, and loyalty programs. She views the haul as “windfalls earned through organic spending” but admits the “combined monetary influx seems significant from a budgetary standpoint.” So should she pencil it into her monthly budget as income?

The hosts gave a clean answer, and I agree with it: track your rewards obsessively, but do not budget them as income. Those are two different jobs. Conflating them is how people end up spending more than they earn while feeling like savvy optimizers.

The verdict: rewards are a rebate on spending you already did A credit card reward is a discount on money you already spent. It works differently from a side hustle or a dividend payment, which generate new income. A paycheck arrives whether or not you go shopping. Rewards only show up because you went shopping. Treating them as income flips the causality and quietly nudges you to spend more to “earn” more, which is exactly backward.

Here is the trap in plain numbers. One of the hosts mentioned earning a $1,000 bonus on Capital One (NYSE:COF | COF Price Prediction)’s Business Spark Cash Card by spending $10,000 on his coffee bar project, including an expensive Italian espresso machine. That is a real reward on real spending he was going to do anyway. The bonus functioned as a 10% rebate on a planned purchase. Perfect use of a card.

Now imagine the inverse. You see a 2% cashback promo and tell yourself you will “earn” $2 back on a $100 purchase. If you did not need the $100 item, you just wasted $98 to earn $2. The math does not become friendlier as the numbers scale. 2% back on a $1,000 impulse buy is $980 you set on fire. Once rewards become a line item you are trying to hit, manufactured spending is the inevitable next step.

The macro backdrop makes this more urgent. The U.S. personal savings rate sits at 4% in the first quarter of 2026, down from 6% in early 2024. Households are already spending a higher share of their disposable income than they were two years ago. Wiring rewards into the budget as income gives you psychological permission to spend even more.

The variable that decides whether a card earns its keep The variable is the annual fee, and the tracking habit is what tells you whether you are winning or losing on it. One host walked through a clean example: he dropped his American Express (NYSE:AXP) Blue Cash Preferred card after realizing he could not overcome the $95 annual fee since he was shopping more at Costco (NASDAQ:COST). Without tracking, that fee would have just kept renewing in the background.

Run the math on any fee card. If a card charges $95 a year and offers 6% back on groceries up to $6,000, you need to run enough qualifying grocery spend through it to clear the fee before the rewards start working for you. Below that threshold, the rewards-as-income illusion is masking a net loss. Above it, the card is genuinely paying you. Many card backends automatically track your earnings (Fidelity and Costco cards both do this), so the tracking work is often already done for you.

I have been optimizing cards for years now, and the cards I keep are the ones I can defend on a spreadsheet. The ones I cancel are the ones where I caught myself rationalizing the fee.

What to do this week Three concrete actions:

Tally last year’s rewards per card. Most issuers show a year-end summary. Subtract any annual fee. If the net number is negative or barely positive, the card is a candidate for cancellation or a product change to a no-fee version. Keep rewards out of your income column. Park them in a separate sinking fund labeled travel, holiday gifts, or a brokerage deposit. The hosts call rewards “semi-volatile” and note that many come as hotel and flight points rather than literal cash, which makes them unreliable as monthly income anyway. Apply the $98 test before any purchase. Ask whether you would buy this item if the card offered zero rewards. If the answer is no, the rebate is just making you poorer more slowly than paying cash would. Rewards are icing. Budgets are the cake. Confuse the two and you end up with a lot of icing and no cake.

Capital One (COF +1.15%) is changing its business model in a significant way following its acquisition of Discover. The key shift is that it will now issue credit cards and process credit card transactions, which generates reliable fee income. Other than that, the company's core focus on lending to lower-credit-quality customers remains in place. But as this big business shift is underway, Capital One's auto lending trends are surprisingly positive news.

Capital One: High risk and high reward Lower-credit-quality customers are willing to pay higher interest rates for access to debt. That is true with both credit cards, which are effectively revolving credit facilities, and with car loans, which are longer-term asset-backed loans. Auto loans have a history of being particularly risky during recessions, when customers' finances are stretched.

Image source: Getty Images.

Since a large chunk of money is already out the door, the only option to recoup losses is to repossess the car. That is not an easy or pleasant experience for anyone involved, since the repossessed car will need to be resold to extract any value it may have. Credit card balances generally aren't as large as those for a car loan, so individually they don't pose the same risk.

Watching Capital One's car loans Essentially, Capital One's car loans can serve as an important leading indicator of credit risk. This is why the business, while smaller than its credit card operation, is worth watching very closely. Right now, the risk doesn't seem all that high, even though consumers are tightening their budgets amid rising inflation. And the fact that high oil prices have some on Wall Street worried about a global recession.

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In the first quarter of 2026, auto charge-offs fell 18 basis points from the fourth quarter of 2025. While they were up nine basis points year over year, they were still a fairly reasonable 1.64%. In April, the figure was even better at 1.2%. So even when there is a problem with an auto loan, the company is managing to recoup much of its loss. Non-performing auto loans, meanwhile, amounted to just 0.55% of its loan book, down from the fourth quarter and the year-ago period. That figure held steady in April.

All in, Capital One's auto loan portfolio isn't screaming that the bank's credit risks are rising. That's a positive sign for investors, but one that you should continue to monitor. When the economy turns south, which it will eventually do at some point, the bank's auto loans could be where the impact starts to hit first. A good indicator of that risk would likely show up first in the 30-day delinquency rates, but those were down sequentially and year over year for auto loans in the first quarter, as well, with an even further decline in the Month of April.