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

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

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

Capital One Financial stock opened at $235.35 on Friday. The firm’s 50-day moving average is $233.09 and its two-hundred day moving average is $223.33. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.03 and a quick ratio of 1.03. The stock has a market capitalization of $149.62 billion, a P/E ratio of 99.30, a P/E/G ratio of 0.52 and a beta of 1.13. Capital One Financial Corporation has a 12-month low of $143.22 and a 12-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. Shareholders of record on Monday, November 17th were issued a $0.80 dividend. This is a positive change from Capital One Financial’s previous quarterly dividend of $0.60. The ex-dividend date was Monday, November 17th. This represents a $3.20 dividend on an annualized basis and a yield of 1.4%. Capital One Financial’s payout ratio is currently 135.02%.

Insider Activity

In other news, insider Frank G. LapradeIii sold 17,840 shares of the firm’s stock in a transaction on 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 sale, the insider 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Matthew W. Cooper sold 2,000 shares of Capital One Financial stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $250.00, for a total value of $500,000.00. Following the completion of the sale, the general counsel directly owned 92,486 shares of the company’s stock, valued at approximately $23,121,500. This represents a 2.12% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 298,895 shares of company stock valued at $67,111,541 in the last 90 days. Insiders own 1.26% of the company’s stock.

Institutional Investors Weigh In On Capital One Financial

A number of institutional investors have recently bought and sold shares of the stock. Centaurus Financial Inc. grew its stake in shares of Capital One Financial by 26.1% during the 3rd quarter. Centaurus Financial Inc. now owns 962 shares of the financial services provider’s stock valued at $204,000 after buying an additional 199 shares during the period. Sunbelt Securities Inc. increased its stake in Capital One Financial by 14.5% during the third quarter. Sunbelt Securities Inc. now owns 2,034 shares of the financial services provider’s stock worth $432,000 after acquiring an additional 257 shares during the last quarter. San Luis Wealth Advisors LLC purchased a new position in shares of Capital One Financial in the 3rd quarter worth about $273,000. Hancock Whitney Corp raised its holdings in shares of Capital One Financial by 192.1% in the 3rd quarter. Hancock Whitney Corp now owns 88,291 shares of the financial services provider’s stock worth $18,769,000 after purchasing an additional 58,068 shares during the period. Finally, Peloton Wealth Strategists lifted its position in Capital One Financial by 2.7% during the third quarter. Peloton Wealth Strategists now owns 12,315 shares of the financial services provider’s stock valued at $2,618,000 after buying an additional 325 shares in the last quarter. 89.84% of the stock is currently owned by hedge funds and other institutional investors.

Capital One Financial News Summary

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

• Positive Sentiment: Capital One agreed to acquire fintech Brex for $5.15 billion, gaining Brex’s corporate?card, expense management and stablecoin/payment capabilities — a clear strategic push into business payments and digital payments infrastructure that management says expands addressable market and product reach. Capital One to Acquire Brex
• Positive Sentiment: Analyst support: TD Cowen reiterated a Buy rating on COF, citing stabilizing credit trends, strategic M&A (Brex) and an attractive valuation underpinning upside. Capital One: Stabilizing Credit Trends, Strategic Acquisitions, and Attractive Valuation Support Buy Rating
• Neutral Sentiment: Q4 results were mixed: adjusted EPS of $3.86 missed consensus while revenue of $15.62B beat estimates and grew ~53% year?over?year — signaling strong top?line momentum but pressure on near?term profitability/adjusted metrics. Investors will watch guidance, net interest margin and credit costs for clarity. Capital One Q4 Earnings Summary
• Neutral Sentiment: Capital One published year?end credit quality metrics showing stabilization — a data point that helps offset some earnings uncertainty but will be monitored for any signs of consumer stress. Capital One Reports Year-End 2025 Credit Quality Metrics
• Negative Sentiment: Regulatory/policy risk intensified after CEO Richard Fairbank warned that a proposed 10% cap on credit?card rates (advocated publicly by former President Trump) could restrict credit access and harm the economy — heightening political risk for card issuers if legislation or state action gains traction. Trump’s 10% Interest Rate Cap On Credit Cards Will ‘Likely Bring On A Recession,’ Says Capital One CEO
• Negative Sentiment: Market reaction was partly negative in extended trading: COF shares slid after the earnings miss and the Brex deal was announced, and HSBC trimmed its price target — indicators that investors are weighing deal execution, dilution and short?term earnings pressure. Capital One Stock Slides On Q4 Earnings Miss, Purchase Of Brex

Analysts Set New Price Targets

Several brokerages have recently weighed in on COF. Wall Street Zen downgraded shares of Capital One Financial from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. Deutsche Bank Aktiengesellschaft lifted their target price on Capital One Financial from $240.00 to $263.00 and gave the company a “hold” rating in a research note on Wednesday, December 17th. Wolfe Research increased their price target on Capital One Financial from $270.00 to $294.00 and gave the stock an “outperform” rating in a report on Thursday, January 8th. Evercore ISI restated an “outperform” rating and set a $290.00 price objective on shares of Capital One Financial in a research report on Tuesday, January 6th. Finally, Barclays increased their price objective on Capital One Financial from $271.00 to $294.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 6th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $280.00.

About Capital One Financial

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.