Capital One Financial (NYSE:COF) Issues Quarterly Earnings Results, Misses Estimates By $0.66 EPS

Capital One Financial Corporation (NYSE:COF) posted its quarterly earnings data on Tuesday. The financial services provider reported $4.42 EPS for the quarter, missing the consensus estimate of $5.08 by ($0.66), FiscalAI reports. The firm had revenue of $15.23 billion during the quarter, compared to analyst estimates of $15.68 billion. Capital One Financial had a net margin of 4.29% and a return on equity of 10.57%. The firm’s revenue for the quarter was up 52.3% compared to the same quarter last year. During the same period in the prior year, the company posted $4.06 earnings per share.

Here are the key takeaways from Capital One Financial’s conference call:

• Capital One reported first-quarter earnings of $3.34 GAAP EPS and an adjusted EPS of $4.42, with sequential pre-provision earnings up about $530 million (8%) supported by a 9% decline in non-interest expense.
• Liquidity and capital remain robust with about $165 billion in liquidity reserves, cash of roughly $76 billion, a preliminary LCR of 166% and a CET1 ratio of 14.4%; the company also repurchased $2.5 billion of stock, though the recently closed Brex deal (~$4.5 billion) is expected to reduce CET1 by a little over 40 bps in Q2.
• Net interest margin compressed to 7.87% (down 39 bps QoQ) due to seasonality (two fewer days), elevated low-yield cash balances and the full-quarter effect of the Discover Home Loans sale, which poses near-term pressure on NIM despite management expecting cash to decline over time.
• Management says the Discover integration is tracking to plan—debit conversion completed, initial revenue synergies already appearing, new Discover originations moving to Capital One’s platform (targeted completion by end of Q3) and full integration synergies of $2.5 billion still expected by mid-2027 with earnings power consistent with the original deal model.
• The company is increasing investments—notably the Brex acquisition and insourcing of travel technology—and marketing spend (total marketing ≈ $1.5 billion, +25% YoY), which will weigh on the efficiency ratio and near-term expense run-rate even as management argues these drive longer-term growth.

Capital One Financial Stock Performance

NYSE COF opened at $199.33 on Thursday. The stock has a market cap of $123.97 billion, a PE ratio of 69.94, a P/E/G ratio of 0.64 and a beta of 1.14. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.44. Capital One Financial Corporation has a twelve month low of $174.72 and a twelve month high of $259.64. The stock has a fifty day simple moving average of $192.19 and a 200-day simple moving average of $214.16.

Capital One Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Thursday, February 19th were issued a dividend of $0.80 per share. The ex-dividend date was Thursday, February 19th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.6%. Capital One Financial’s dividend payout ratio is currently 112.28%.

Capital One Financial News Summary

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

• Positive Sentiment: Analyst upside from Barclays: Barclays raised its price target to $250 and kept an overweight rating, signaling confidence in COF’s medium‑term earnings potential and integration benefits. Barclays price-target raise
• Positive Sentiment: JPMorgan nudges target higher: JPMorgan lifted its target to $215 and maintained an overweight call, a modest supportive datapoint for the stock’s near-term outlook. JPMorgan note
• Neutral Sentiment: Preferreds look attractive to income investors: A Seeking Alpha piece says Capital One’s Series N preferreds may offer value with an upgrade horizon in late‑2027/early‑2028 — relevant for yield‑seeking holders but less directly tied to common‑stock moves. Preferreds article
• Negative Sentiment: $425M settlement approved: A court approved a $425M settlement requiring payouts to current and former customers and changes to savings rates — this increases near‑term cash outflows and could raise deposit costs. Settlement article
• Negative Sentiment: Q1 earnings and revenue missed estimates: COF reported adjusted EPS of $4.42 and revenue of $15.23B, both slightly below consensus; management also raised provisions for credit losses, refocusing investor concern on credit costs. Earnings/reports
• Negative Sentiment: Shares reacted to rising provisions and higher expenses: Coverage and market commentary emphasize a jump in provisions y/y and margin/expense pressures, which likely amplified the stock’s weakness after the print. Zacks coverage
• Neutral Sentiment: Mixed analyst moves: Deutsche Bank trimmed its target slightly (still a hold), while BTIG reaffirmed a buy at $224 — the mixed analyst action points to diverging views on valuation vs. risk. Analyst moves

Analyst Ratings Changes

Several brokerages have issued reports on COF. The Goldman Sachs Group dropped their target price on Capital One Financial from $300.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, April 7th. BTIG Research restated a “buy” rating and issued a $224.00 target price on shares of Capital One Financial in a report on Wednesday. Truist Financial dropped their target price on Capital One Financial from $275.00 to $255.00 and set a “buy” rating for the company in a report on Thursday. Wolfe Research dropped their target price on Capital One Financial from $294.00 to $280.00 and set an “outperform” rating for the company in a report on Friday, January 23rd. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on Capital One Financial from $256.00 to $250.00 and set a “hold” rating for the company in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Capital One Financial currently has an average rating of “Moderate Buy” and an average price target of $259.30.

Insiders Place Their Bets

In other news, insider Jason P. Hanson sold 3,729 shares of the stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $205.00, for a total transaction of $764,445.00. Following the completion of the transaction, the insider directly owned 40,230 shares in the company, valued at approximately $8,247,150. This represents a 8.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Neal Blinde sold 38,135 shares of the stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $190.51, for a total value of $7,265,098.85. Following the transaction, the insider owned 33,551 shares of the company’s stock, valued at approximately $6,391,801.01. This represents a 53.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 50,047 shares of company stock valued at $9,742,217. 0.78% of the stock is owned by company insiders.

Hedge Funds Weigh In On Capital One Financial

Hedge funds have recently modified their holdings of the business. Osterweis Capital Management Inc. purchased a new position in shares of Capital One Financial during the 4th quarter worth $29,000. CrossGen Wealth LLC purchased a new position in Capital One Financial during the 4th quarter valued at about $30,000. Strive Asset Management LLC purchased a new position in Capital One Financial during the 3rd quarter valued at about $28,000. Strive Financial Group LLC purchased a new position in Capital One Financial during the 4th quarter valued at about $33,000. Finally, WFA of San Diego LLC purchased a new position in Capital One Financial during the 2nd quarter valued at about $32,000. 89.84% of the stock is currently owned by hedge funds and other institutional investors.

Capital One Financial Company Profile

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.