NEW YORK, July 21, 2026, 18:08 EDT
- Adjusted earnings per share were $5.81, and revenue for the quarter stood at $15.85 billion.
- Roughly 96% of the increase in pretax profit from the previous period was attributed to reduced provisions.
- The stock finished the session at $206.22, slipping 0.27%, before moving to around $207 in after-hours trading.
Capital One Financial Corporation reported a significant rise in quarterly profit, with most of the sequential gain occurring below the pre-provision line.
The credit-loss provision declined by $1.079 billion, while pretax income increased by $1.119 billion. The decrease represents roughly 96% of the income rise.
This serves as the investor benchmark. Improved credit provided an instant boost, and changes in revenue and expenses largely offset one another. Broader operating margins are required for further progress.
U.S. markets had closed by the dateline. The stock finished the session down 0.27% at $206.22. After-hours trading saw shares trading close to $207.
Net income for the second quarter climbed to $3.0 billion, compared with $2.2 billion a year earlier. GAAP EPS advanced to $4.73 from $3.34, while adjusted EPS stood at $5.81.
Chief Executive Richard Fairbank stated that the results showed “solid top line growth and strong credit performance.” He added that integration of Discover was progressing smoothly. Capital One Financial Corp.
The quarter-on-quarter breakdown highlights where the profit increase originated.
| Metric | Q2 2026 | Q1 2026 | Sequential change |
|---|---|---|---|
| Net revenue | $15.850 bln | $15.231 bln | +$619 mln |
| Non-interest expense | $9.043 bln | $8.464 bln | +$579 mln |
| Pre-provision earnings | $6.807 bln | $6.767 bln | +$40 mln |
| Credit-loss provision | $2.989 bln | $4.068 bln | -$1.079 bln |
| Pretax income | $3.818 bln | $2.699 bln | +$1.119 bln |
| Domestic card net charge-off rate | 4.71% | 5.10% | -39 bps |
| Domestic card 30-day delinquency | 3.39% | 3.70% | -31 bps |
Pre-provision earnings, a non-GAAP metric, represents revenue minus non-interest expenses. Variations are based on the company’s published results.
Revenue climbed by $619 million, while costs went up $579 million. Pre-provision earnings grew $40 million, up 0.6%.
The main factor was the fall in provisions. Capital One shifted from building $230 million in reserves to releasing $662 million. This $892 million change accounted for 83% of the reduction in provision.
The release was backed by credit data. Net charge-offs on domestic cards declined by 39 basis points to 4.71%. Thirty-day delinquencies decreased by 31 basis points to 3.39%.
Net interest margin increased by 14 basis points to 8.01%. Loans at period end climbed 2% to $457.2 billion. Auto loan balances advanced 4%, outpacing growth in both card and commercial balances.
Deposit figures were mixed. Balances at the end of the period slipped 1% to $484.3 billion, while the average deposit amount increased by 1%. The interest paid on deposits dropped by nine basis points.
Total expenses climbed 7%, with marketing costs up 11%. Charges from Discover and Brex integrations reduced EPS by $0.36 and $0.12, respectively. Amortization from acquisitions further impacted EPS by $0.60.
Capital One posted a Common Equity Tier 1 (CET1) ratio of 13.7%. This capital measure is preliminary and may be revised. The financial supplement remains provisional until the 10-Q is filed.
The stock advanced roughly 0.5% across the five sessions ending Tuesday, climbing from $205.29 on July 14 to $206.22. Despite this, Reuters reported a year-to-date drop of 14.9%.
The initial complete response from the regular session arrives Wednesday. American Express Company NYSE:AXP announces results on Friday, with its conference call scheduled for 8:30 a.m. ET. The Federal Reserve convenes July 28–29.
The primary concern is that reserve relief could diminish or reverse. If card losses increase again, it would weigh on earnings. Integration expenses and heightened marketing outlays are also significant factors.
