New York, Jan 23, 2026, 18:05 EST — After-hours
Shares of Capital One Financial Corporation dropped 7.6% on Friday and barely moved after hours, following the announcement of a $5.15 billion acquisition of fintech Brex and quarterly earnings that came up short of profit expectations. The stock closed at $217.30, having dipped to $217.00 during the session, on volume of roughly 14.2 million shares.
The decline is significant as Capital One aims to expand beyond consumer credit just as Washington revisits limits on what card issuers can charge borrowers. Investors are balancing the company’s strategic move into business payments against regulatory talks that might squeeze pricing and profits industry-wide.
Timing plays a role too. Announcing a major acquisition is tricky enough for traders to assess; add a earnings miss and volatility in financials, and selling often accelerates quickly—even when the longer-term rationale remains sound.
A regulatory filing revealed that Capital One will acquire Brex for $5.15 billion, consisting of roughly $2.75 billion in cash plus about 10.6 million shares of Capital One common stock. The transaction is set to close by mid-2026, pending standard conditions like regulatory approval. (SEC)
Capital One and Brex framed the deal as a fast track for Capital One’s move into business payments, leveraging Brex’s corporate cards and expense-management tools. “Acquiring Brex accelerates this journey,” said Capital One CEO Richard D. Fairbank. Brex CEO Pedro Franceschi added that the partnership would “supercharge our next chapter.” (SEC)
Capital One posted adjusted EPS of $3.86 for Q4, excluding certain items like deal-related costs—a non-GAAP figure that came up short of the $4.17 consensus, per Investing.com. Revenue hit $15.6 billion, just above estimates. BTIG analysts noted the Brex acquisition “makes sense” over the long haul but warned it could lead to near-term dilution and slower buybacks. (Investing)
The bank’s net interest income — the gap between earnings on loans and costs on deposits — jumped 54% to $12.47 billion this quarter. Net income available to common shareholders hit $2.06 billion, or $3.26 per share, according to Reuters. On the earnings call, Fairbank cautioned that capping credit-card rates might lead to “unintended consequences.” JPMorgan Chase CEO Jamie Dimon described a similar proposal as an “economic disaster,” Reuters added. (Reuters)
A separate SEC filing revealed Capital One’s domestic credit-card net charge-off rate hit 5.01% in December, an annualized figure reflecting balances written off minus recoveries. Meanwhile, 30+ day performing delinquencies stood at 3.99%. These monthly credit stats often sway the stock, as investors hunt for early warning signs of strain in the loan portfolio. (SEC)
The policy environment isn’t doing credit-card stocks any favors. Since President Donald Trump floated the idea of capping card interest rates, shares of companies like American Express and Visa have also slipped, Investopedia reported. (Investopedia)
Still, plenty can derail the Brex deal. Regulators might drag their feet or throw up hurdles. Integration expenses could overshoot forecasts. And if rate caps come into play, lenders leaning heavily on card balances would feel the margin pinch the most. On top of that, a weaker economy could drive up delinquencies and charge-offs, hitting them a second time.
The Federal Reserve’s Jan. 27–28 meeting is next week’s key macro event, with the policy statement set for Jan. 28. For Capital One, traders are zeroing in on any clearer signals from Washington about how a card-rate cap might be structured and enforced. Investors will also be parsing management’s early take on the Brex integration after the weekend to process the latest numbers. (Federalreserve)
