Capital One Financial (COF) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $3.0 billion, or $4.73 per diluted share, with adjusted EPS at $5.81, reflecting exclusion of integration and amortization expenses; pre-provision earnings rose 1% to $6.8 billion.

• Revenue increased 4% sequentially and 27% year-over-year, driven by higher net interest income and the Discover and Brex acquisitions.

• The Brex acquisition closed in April 2026 for $4.5 billion, and Discover in May 2025, both contributing to segment results and synergies.

• Integration of Discover is progressing, with full debit revenue synergies realized and one-third of operating expense synergies achieved; integration is 14 months into a 24-month plan.

• $2.7 billion in share repurchases during Q2 2026; $5.2 billion year-to-date.

Financial highlights

• Net interest income was $12.4 billion, up 2% quarter-over-quarter and 24% year-over-year; net interest margin rose to 8.01%, up 14 basis points sequentially.

• Provision for credit losses decreased 27% sequentially to $3.0 billion, with $3.7 billion of net charge-offs and a $662 million allowance release.

• Allowance coverage ratio ended at 5.02%; liquidity reserves at $144 billion, with a liquidity coverage ratio of 165%.

• Efficiency ratio was 57.05%, with adjusted efficiency ratio at 51.38%.

• Period-end loans held for investment increased 2% to $457.2 billion; average loans up 1% to $450.7 billion.

Outlook and guidance

• Management expects continued contraction in Discover card and personal loans through Q4 2026, with growth resuming post-integration as more capabilities are deployed.

• Full Discover card originations to be on Capital One’s tech stack by end of Q3; back book migration to complete by Q1 2027.

• On track to deliver $2.5 billion in announced Discover synergies by 2027.

• Earnings power post-Discover integration expected to be consistent with initial deal expectations, with ROTCE calculated using a 12.5% CET1 denominator.

• Net interest income and margin are expected to fluctuate with interest rates and portfolio mix.