Capital One Financial (NYSE:COF) Announces Quarterly Earnings Results, Misses Estimates By $0.28 EPS

Capital One Financial Corporation (NYSE:COF) issued its quarterly earnings results on Thursday. The financial services provider reported $3.86 EPS for the quarter, missing the consensus estimate of $4.14 by ($0.28), FiscalAI reports. The company had revenue of $15.62 billion for the quarter, compared to analyst estimates of $15.49 billion. Capital One Financial had a return on equity of 10.94% and a net margin of 2.24%.The business’s revenue for the quarter was up 53.3% on a year-over-year basis. During the same period last year, the company posted $2.67 EPS.

Here are the key takeaways from Capital One Financial’s conference call:

• Capital One agreed to acquire Brex for $5.15 billion to accelerate its business-payments, AI-enabled spend-management and corporate-liability card capabilities; management said the deal (~3.5% of market cap) should be accretive over time (initially dilutive) and will not derail Discover integration or expected synergies.
• Fourth-quarter GAAP EPS were $3.26 (adjusted Q4 EPS excluding the home-loan sale $3.86), but the provision for credit losses jumped to $4.1 billion (allowance build and higher net charge-offs), which weighed on pre-provision earnings.
• Discover integration is progressing: debit conversions are nearly complete, Capital One expects to originate cards on the Discover network by mid‑year and management is prioritizing raising Discover’s international acceptance to unlock network value.
• Capital actions remained active — the company repurchased $2.5 billion of stock in Q4, raised the dividend 33% to $0.80, and ended the quarter with a CET1 ratio of 14.3%; management said the Brex purchase will modestly reduce capital (~40 bps) but won’t change planned buyback cadence.

Capital One Financial Price Performance

Shares of COF stock opened at $235.35 on Friday. The company has a market capitalization of $149.62 billion, a PE ratio of 99.30, a price-to-earnings-growth ratio of 0.52 and a beta of 1.13. The firm has a fifty day simple moving average of $233.09 and a 200-day simple moving average of $223.33. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.45. Capital One Financial Corporation has a twelve month low of $143.22 and a twelve month high of $259.64.

Capital One Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, December 1st. Stockholders of record on Monday, November 17th were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Monday, November 17th. This is an increase from Capital One Financial’s previous quarterly dividend of $0.60. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.4%. Capital One Financial’s dividend payout ratio is presently 135.02%.

Insider Activity

In other news, insider Frank G. LapradeIii sold 17,840 shares of the firm’s stock in a transaction dated Thursday, November 13th. The stock was sold at an average price of $222.03, for a total transaction of $3,961,015.20. Following the completion of the sale, the insider directly owned 48,315 shares in the company, valued at $10,727,379.45. This trade represents a 26.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Matthew W. Cooper sold 2,000 shares of the business’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $250.00, for a total value of $500,000.00. Following the completion of the transaction, the general counsel owned 92,486 shares in the company, valued at approximately $23,121,500. This trade represents a 2.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 298,895 shares of company stock worth $67,111,541 over the last three months. 1.26% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Capital One Financial

A number of institutional investors have recently modified their holdings of the stock. Brighton Jones LLC lifted its holdings in shares of Capital One Financial by 330.1% in the 4th quarter. Brighton Jones LLC now owns 13,587 shares of the financial services provider’s stock worth $2,423,000 after purchasing an additional 10,428 shares during the last quarter. Intech Investment Management LLC increased its position in Capital One Financial by 44.3% in the first quarter. Intech Investment Management LLC now owns 8,968 shares of the financial services provider’s stock worth $1,608,000 after buying an additional 2,753 shares during the period. Sivia Capital Partners LLC increased its position in Capital One Financial by 118.3% in the second quarter. Sivia Capital Partners LLC now owns 3,300 shares of the financial services provider’s stock worth $702,000 after buying an additional 1,788 shares during the period. Flow Traders U.S. LLC bought a new stake in Capital One Financial in the second quarter valued at $218,000. Finally, Jump Financial LLC acquired a new position in shares of Capital One Financial during the second quarter valued at $1,086,000. Institutional investors and hedge funds own 89.84% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Zacks Research downgraded Capital One Financial from a “strong-buy” rating to a “hold” rating in a research report on Monday, November 24th. Morgan Stanley lifted their price objective on Capital One Financial from $280.00 to $300.00 and gave the company an “overweight” rating in a research note on Tuesday. UBS Group dropped their target price on shares of Capital One Financial from $270.00 to $266.00 and set a “buy” rating for the company in a research report on Tuesday, October 7th. JPMorgan Chase & Co. raised their price target on shares of Capital One Financial from $237.00 to $256.00 and gave the company a “neutral” rating in a report on Monday, January 12th. Finally, TD Cowen reiterated a “buy” rating on shares of Capital One Financial in a research note on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $280.00.

Capital One Financial News Roundup

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

• Positive Sentiment: Acquisition of Brex for $5.15B — Capital One agreed to acquire Brex in a cash-and-stock deal that gives COF access to Brex’s corporate-card, expense-management and AI-native finance tools; the transaction is expected to close mid-year and frames the move as strategic expansion into higher-growth fintech services. Capital One to Acquire Brex
• Positive Sentiment: Revenue slightly beat estimates — Q4 revenue of $15.62B came in above consensus, signaling continued top-line resilience even as loan/credit dynamics shift; that helped investor focus on growth opportunities rather than the EPS miss. Here’s What Key Metrics Tell Us About Capital One (COF) Q4 Earnings
• Neutral Sentiment: Year‑end credit metrics published — Capital One released detailed credit-quality data for December, which investors will parse for signs of deterioration or improvement; no dramatic surprises were highlighted at first glance. Capital One Reports Year-End 2025 Credit Quality Metrics
• Neutral Sentiment: Depositor lawsuit nearing resolution — Reports say Capital One is closer to settling a depositor suit for roughly $425M, which would remove an overhang but is a one‑time charge rather than an ongoing-business change. Capital One Closer to Ending Depositor Lawsuit With $425M Settlement Deal
• Negative Sentiment: Q4 EPS missed estimates — Adjusted EPS of $3.86 missed consensus (~$4.07/$4.12), which pressured the near‑term earnings narrative and explains some analyst and sell‑side caution. Capital One (COF) Lags Q4 Earnings Estimates
• Negative Sentiment: Analyst target cut — HSBC trimmed its price target to $226, signaling some analyst skepticism on near-term earnings power and valuation after the print. HSBC Lowers Capital One Financial (NYSE:COF) Price Target to $226.00
• Negative Sentiment: Regulatory risk — Continued political discussion of a 10% credit‑card APR cap remains a downside risk for card issuers’ margins; analysts have flagged Capital One as vulnerable if such limits were enacted. Trump’s 10% Credit Card APR Cap Looms Over Capital One Ahead Of Q4

Capital One Financial Company Profile

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.