What were Capital One's Q1 2026 earnings, and how do GAAP and adjusted results differ?

Capital One reported GAAP net income of $2.2 billion, or $3.34 per diluted share. Adjusted diluted EPS, a non-GAAP measure that excludes Discover amortization ($0.58) and Discover integration expenses ($0.50), was $4.42. The adjustments reflect costs tied to the 2025 Discover acquisition, so investors should weigh both measures when assessing underlying earnings power.

Why did non-interest expense fall so sharply in the quarter?

Total non-interest expense decreased 9% sequentially to $8.5 billion. The largest driver was a 23% drop in marketing to $1.5 billion, which typically reflects the seasonal and timing-related pattern of card marketing spend. Operating expense also fell 6%. Investors should consider whether marketing will rebound in coming quarters.

Is credit quality deteriorating at Capital One?

Not on the reported metrics. The net charge-off rate was flat at 3.45%, and the 30+ day performing delinquency rate improved to 3.04% from 3.41%. The provision for credit losses was $4.1 billion, including a $230 million reserve build, which is modest. Domestic card net charge-offs were 5.10%, up 17 basis points sequentially, so card-specific credit trends bear monitoring.

What is driving the decline in revenue and loans?

Total net revenue fell 2% and net interest margin compressed 39 basis points to 7.87%, partly due to lower card balances. Period-end card loans fell $9.0 billion (3%) to $270.6 billion. Auto and commercial loans grew modestly, offsetting part of the card decline. Investors should watch whether card balance growth resumes.

How strong is Capital One's capital position?

The preliminary Basel III Standardized common equity Tier 1 ratio was 14.4%, up 10 basis points from the prior quarter, and the Tier 1 leverage ratio was 12.2%. Tangible common equity was 10.3% of tangible assets. These capital levels indicate ample buffers, though the figures are subject to change until the 10-Q is filed.

CAPITAL ONE FINANCIAL CORP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 21, 2026. Cited figures are marked; the original filing is the authoritative source.

Capital One (COF) reported first quarter 2026 GAAP net income of $2.2 billion^a, or $3.34 per diluted share, versus $3.26 in the fourth quarter of 2025 and $3.45 in the first quarter of 2025.

Excluding Discover-related amortization ($0.58^b per share) and integration expenses ($0.50 per share), adjusted diluted EPS was $4.42, up from $3.86 in Q4 2025 and $4.06 in Q1 2025. Total net revenue fell 2% sequentially to $15.2 billion, while non-interest expense dropped 9% to $8.5 billion, driven largely by a 23% decline in marketing. Pre-provision earnings rose 8% to $6.8 billion, and the efficiency ratio improved to 55.57% (adjusted 49.71%).

Credit quality was mixed on the surface. The provision for credit losses was $4.1 billion^c, including net charge-offs of $3.8 billion and a $230 million reserve build. The net charge-off rate held at 3.45%, flat sequentially, and the 30+ day performing delinquency rate improved to 3.04% from 3.41%.

Net interest margin compressed 39 basis points to 7.87%, and period-end loans declined 1% to $447.8 billion^d, mainly because Domestic Card balances fell $8.4 billion. Deposits grew 3% to $489.1 billion while the interest-bearing deposit rate fell 16 basis points to 3.00%. The common equity Tier 1 ratio (preliminary) rose to 14.4%.

For investors, the central questions are whether Discover integration costs and amortization roll off as guided, whether the card franchise can return to loan growth after the Q1 decline, and whether margin pressure stabilizes. The quarter shows strong cost discipline and resilient credit, but top-line contraction and margin compression are the key watch items. The filing furnishes the press release and financial supplement under Item 2.02 and does not include forward guidance in the excerpted text.

02—Key points

Key Highlights

GAAP diluted EPS of $3.34 (up 2% sequentially, down 3% year over year); adjusted diluted EPS of $4.42, excluding $0.58 of Discover amortization and $0.50 of Discover integration expenses.
Total net revenue declined 2% QoQ to $15.2 billion, while non-interest expense fell 9% to $8.5 billion, lifting pre-provision earnings 8% to $6.8 billion.
Marketing expense dropped 23% QoQ to $1.5 billion, and operating expense fell 6% to $7.0 billion.
Net interest margin compressed 39 basis points to 7.87%, and total loans held for investment declined 1% to $447.8 billion, led by a $9.0 billion (3%) decline in credit card loans.
Net charge-off rate was stable at 3.45%, and the 30+ day performing delinquency rate improved 37 basis points to 3.04%, signaling stable-to-improving credit trends.
Deposits grew 3% QoQ to $489.1 billion, and the interest-bearing deposit rate fell 16 basis points to 3.00%, supporting funding cost relief.
Common equity Tier 1 ratio (preliminary) rose 10 basis points to 14.4%, and tangible book value per share was $107.76, roughly flat sequentially.

03—Questions

Frequently Asked Questions

What were Capital One's Q1 2026 earnings, and how do GAAP and adjusted results differ?
Capital One reported GAAP net income of $2.2 billion, or $3.34 per diluted share. Adjusted diluted EPS, a non-GAAP measure that excludes Discover amortization ($0.58) and Discover integration expenses ($0.50), was $4.42. The adjustments reflect costs tied to the 2025 Discover acquisition, so investors should weigh both measures when assessing underlying earnings power.
Why did non-interest expense fall so sharply in the quarter?
Total non-interest expense decreased 9% sequentially to $8.5 billion. The largest driver was a 23% drop in marketing to $1.5 billion, which typically reflects the seasonal and timing-related pattern of card marketing spend. Operating expense also fell 6%. Investors should consider whether marketing will rebound in coming quarters.
Is credit quality deteriorating at Capital One?
Not on the reported metrics. The net charge-off rate was flat at 3.45%, and the 30+ day performing delinquency rate improved to 3.04% from 3.41%. The provision for credit losses was $4.1 billion, including a $230 million reserve build, which is modest. Domestic card net charge-offs were 5.10%, up 17 basis points sequentially, so card-specific credit trends bear monitoring.
What is driving the decline in revenue and loans?
Total net revenue fell 2% and net interest margin compressed 39 basis points to 7.87%, partly due to lower card balances. Period-end card loans fell $9.0 billion (3%) to $270.6 billion. Auto and commercial loans grew modestly, offsetting part of the card decline. Investors should watch whether card balance growth resumes.
How strong is Capital One's capital position?
The preliminary Basel III Standardized common equity Tier 1 ratio was 14.4%, up 10 basis points from the prior quarter, and the Tier 1 leverage ratio was 12.2%. Tangible common equity was 10.3% of tangible assets. These capital levels indicate ample buffers, though the figures are subject to change until the 10-Q is filed.

04—Continue

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