Capital One Financial (COF) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $2.2 billion, or $3.34 per diluted share; adjusted EPS was $4.42, reflecting Discover-related adjustments and integration expenses.

• Revenue for Q1 2026 was $15.2 billion, up from $10.0 billion in Q1 2025, driven by the Discover acquisition.

• Pre-provision earnings rose 8% sequentially to $6.8 billion.

• Provision for credit losses was $4.1 billion, with $3.8 billion in net charge-offs and allowance coverage ratio rising to 5.28%.

• Discover integration milestones achieved, including full debit customer conversion and $477 million in amortization and $415 million in integration expenses.

Financial highlights

• Net interest income for Q1 2026 was $12.1 billion, up 52% year-over-year, with net interest margin at 7.87%.

• Non-interest expense was $8.5 billion, down 9% sequentially, driven by lower marketing and operating costs.

• Allowance for credit losses increased by $230 million to $23.6 billion; portfolio coverage ratio rose to 5.28%.

• Liquidity reserves ended Q1 at $165 billion, up $21 billion sequentially; cash position at $76 billion.

• CET1 capital ratio was 14.4% as of March 31, 2026, up from 14.3% at year-end 2025.

Outlook and guidance

• Earnings power post-Discover integration expected to remain consistent with initial deal expectations, with expense synergies back-loaded and full realization by mid-2027.

• Net interest income and margin expected to fluctuate with interest rates and loan mix.

• Marketing spend will increase over the year as investments shift to later quarters.

• Regulatory capital buffer requirements to remain at current levels through September 2027.

• Forward-looking statements highlight risks from Discover integration, macroeconomic instability, and regulatory changes.