01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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 billionc, further expanding its presence in the business payments market. Investors should monitor credit quality trends and integration costs associated with both Discover and Brex.
02—Key points
Key Highlights
- Total net revenue increased 52% year-over-year to $15.2 billion.
- Net income increased 55% year-over-year to $2.2 billion, or $3.34 per diluted share.
- Net interest income grew 52% to $12.1 billion, largely due to the addition of Discover.
- Provision for credit losses increased 72% to $4.1 billion, driven by higher net charge-offs.
- The Common Equity Tier 1 capital ratio was 14.4%, an increase from the prior quarter.
- Capital One completed the acquisition of Brex Inc. for approximately $4.5 billion.
- The 30+ day delinquency rate decreased by 35 basis points to 3.24% from the prior quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $15.23B$10.00B | +52.3% |
| Operating Income | $2.18B$1.40B | +55.3% |
| Net Income | $2.17B$1.40B | +54.8% |
| EPS (Basic) | $3.34$3.46 | −3.5% |
| EPS (Diluted) | $3.34$3.45 | −3.2% |
| Shares Outstanding (Basic) | 622.50M383.10M | +62.5% |
| Shares Outstanding (Diluted) | 623.40M384.00M | +62.3% |
05—Questions
Frequently Asked Questions
What was Capital One's net income for the first quarter of 2026?
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.
How did the Discover acquisition impact the company's financial results?
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.
What is the current status of Capital One's capital ratios?
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.
Has Capital One made any significant acquisitions recently?
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.
How is Capital One managing its credit risk, and what are the key delinquency trends?
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.
06—Continue