10-QPeriod: Q1 FY2026

CAPITAL ONE FINANCIAL CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:COFCOF-PLCOF-PICOF-PKCOF-PNCOF-PJ

Summary

Capital One Financial Corporation (COF) reported robust financial performance for the first quarter of 2026, driven significantly by the integration of Discover. Total net revenue surged by 52% to $15.2 billion, while net income saw a substantial increase of 55% to $2.2 billion, or $3.34 per diluted share. This growth was primarily fueled by a significant rise in net interest income, up 52% to $12.1 billion, and non-interest income, up 55% to $3.1 billion, both largely attributed to the expanded credit card portfolio post-Discover acquisition. The company's efficiency continues to improve, with the efficiency ratio decreasing by 345 basis points to 55.57%. Capital ratios remain strong, with Common Equity Tier 1 capital at 14.4%, well above regulatory minimums. However, the growth was accompanied by a 72% increase in the provision for credit losses to $4.1 billion, primarily due to higher net charge-offs in the credit card portfolio, also linked to the Discover integration. Despite this, the 30+ day delinquency rate saw a notable decrease of 35 basis points to 3.24% quarter-over-quarter. The company also announced the completion of its acquisition of Brex Inc. for approximately $4.5 billion, further expanding its presence in the business payments market. Investors should monitor credit quality trends and integration costs associated with both Discover and Brex.

Financial Highlights

41 data points
Beta

Revenue

$15.23B

Net Income

$2.17B

14.3% Net Margin

EPS (Diluted)

$3.34

Total Assets

$682.90B

Cash & Equivalents

$79.26B

Free Cash Flow

$5.47B

Financial Statements
Beta
Revenue$15.23B
Operating Income$2.18B
Net Income$2.17B
EPS (Basic)$3.34
EPS (Diluted)$3.34
Shares Outstanding (Basic)622.50M
Shares Outstanding (Diluted)623.40M

Key Highlights

  • 1Total net revenue increased 52% year-over-year to $15.2 billion.
  • 2Net income increased 55% year-over-year to $2.2 billion, or $3.34 per diluted share.
  • 3Net interest income grew 52% to $12.1 billion, largely due to the addition of Discover.
  • 4Provision for credit losses increased 72% to $4.1 billion, driven by higher net charge-offs.
  • 5The Common Equity Tier 1 capital ratio was 14.4%, an increase from the prior quarter.
  • 6Capital One completed the acquisition of Brex Inc. for approximately $4.5 billion.
  • 7The 30+ day delinquency rate decreased by 35 basis points to 3.24% from the prior quarter.

Frequently Asked Questions

Capital One reported a net income of $2.2 billion for the first quarter of 2026, a 55% increase compared to the first quarter of 2025.

The integration of Discover significantly boosted Capital One's results. Net interest income increased by 52% to $12.1 billion and non-interest income rose by 55% to $3.1 billion, primarily driven by the expanded credit card portfolio from Discover. However, this integration also led to a 72% increase in the provision for credit losses due to higher net charge-offs in the credit card portfolio.

Capital One's Common Equity Tier 1 (CET1) capital ratio was 14.4% as of March 31, 2026, which is above the regulatory minimums and shows a slight increase from the previous quarter.

Yes, Capital One announced the completion of its acquisition of Brex Inc. for approximately $4.5 billion on April 7, 2026. This acquisition is expected to enhance Capital One's offerings in the business payments marketplace.

Capital One closely monitors economic conditions and loan performance trends. The company's 30+ day delinquency rate decreased by 35 basis points to 3.24% from the end of the previous quarter. The provision for credit losses has increased, reflecting higher net charge-offs, particularly in the credit card segment, largely due to the Discover acquisition. The allowance for credit losses increased by $221 million to $23.6 billion.