10-QPeriod: Q2 FY2026

CAPITAL ONE FINANCIAL CORP Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 28, 2026For Securities:COFCOF-PLCOF-PICOF-PKCOF-PNCOF-PJ

Summary

Capital One Financial Corporation reported a significant turnaround in its financial performance for the second quarter and first six months of 2026 compared to the prior year. Net income for the quarter was $3.0 billion, a substantial increase from a net loss of $4.3 billion in Q2 2025, driven by a lower provision for credit losses and higher net interest income. For the first six months, net income reached $5.2 billion, a marked improvement from a net loss of $2.9 billion in the same period of 2025. The company's total net revenue grew by 27% year-over-year in the second quarter and 38% for the first six months, largely fueled by the inclusion of Discover Financial Services and growth in the credit card portfolio. While non-interest expense also increased due to the Discover integration and acquisition amortization, the overall profitability improvement was substantial. Capital One's balance sheet remains strong, with total assets growing and a solid Common Equity Tier 1 (CET1) capital ratio of 13.7% as of June 30, 2026, well above regulatory minimums.

Key Highlights

  • 1Capital One achieved a significant net income of $3.0 billion in Q2 2026, a dramatic improvement from a net loss of $4.3 billion in Q2 2025.
  • 2Total net revenue increased by 27% year-over-year in Q2 2026, reflecting strong growth across segments.
  • 3The provision for credit losses decreased by 74% in Q2 2026 compared to Q2 2025, primarily due to the absence of the initial allowance for credit losses from the Discover acquisition.
  • 4Net interest income grew by 24% in Q2 2026, boosted by higher credit card loan balances, largely from the Discover acquisition.
  • 5Capital One's CET1 capital ratio stood at a healthy 13.7% as of June 30, 2026, indicating strong capital adequacy.
  • 6The company repurchased $2.7 billion of common stock in Q2 2026 and declared dividends of $0.80 per common share, demonstrating a commitment to returning capital to shareholders.
  • 7The recent acquisition of Brex Inc. for approximately $4.5 billion enhances Capital One's offerings in the business payments marketplace.

Frequently Asked Questions

The primary driver for the substantial increase in net income was the significant reduction in the provision for credit losses, largely due to the absence of the initial allowance for credit losses for loans acquired in the Discover acquisition in the prior year's comparative period. Higher net interest income, driven by increased credit card loan balances (also influenced by the Discover acquisition), and growth in non-interest income also contributed significantly.

The acquisition of Discover Financial Services, completed in May 2025, has had a substantial positive impact on Capital One's results. It significantly increased total net revenue, net interest income, and non-interest income. However, it also led to higher non-interest expenses due to integration costs and acquisition amortization. The financial statements reflect the inclusion of Discover's operations from May 2025 onwards.

Capital One maintains a strong capital position. As of June 30, 2026, the Common Equity Tier 1 (CET1) capital ratio was 13.7%, which is well above the regulatory minimum requirement of 4.5% and the 'well-capitalized' standard. The company also maintained a Tier 1 leverage ratio of 11.8% and a supplementary leverage ratio of 10.1%.

Capital One completed the acquisition of Brex Inc. on April 7, 2026, for approximately $4.5 billion. This acquisition enhances Capital One's offerings in the business payments marketplace and is expected to contribute to future growth. Integration expenses related to Brex were $96 million in the first six months of 2026.