Capital One Financial (COF) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $2.2 billion, or $3.34 per diluted share; adjusted EPS was $4.42, reflecting Discover-related adjustments and integration expenses.

• Pre-provision earnings rose 8% sequentially to $6.8 billion.

• Revenue declined 2% sequentially to $15.2 billion, but net interest income was $12.1 billion, up 52% year-over-year.

• Net interest margin was 7.87%, down 39 basis points sequentially but up 94 basis points year-over-year due to the Discover acquisition.

• Provision for credit losses was $4.1 billion, with $3.8 billion in net charge-offs and a $230 million allowance build; allowance coverage ratio rose to 5.28%.

Financial highlights

• Allowance for credit losses increased by $230 million to $23.6 billion; portfolio coverage ratio rose to 5.28%.

• Liquidity reserves ended Q1 at $165 billion, up $21 billion sequentially; cash position at $76 billion.

• Period-end total deposits increased $13.3 billion to $489.1 billion; 85% of deposits were insured.

• Total non-interest expense fell 9% to $8.5 billion, with marketing down 23% and operating expenses down 6%.

• Tangible book value per share remained flat at $107.76.

Outlook and guidance

• Earnings power post-Discover integration expected to remain consistent with initial deal expectations, even after Brex and Hopper acquisitions.

• Marketing spend will increase over the year as investments shift to later quarters.

• Expense synergies from Discover integration are back-loaded, with full realization expected by mid-2027.

• NIM expected to structurally persist at post-Discover levels, with seasonal fluctuations.

• Forward-looking statements highlight risks from Discover integration, macroeconomic instability, and regulatory changes.