EarningsQ3 2026 Earnings Report
CH:CFX Q3 2026 EPS Results
Actual EPSCHF5.49
Consensus EPSCHF4.54
Beat/MissBeat by +CHF0.95
One Year Ago EPSCHF4.88
CH:CFX Q3 2026 Revenue Results
Actual RevenueCHF16.71B
Expected RevenueCHF13.33B
Beat/MissBeat by +CHF3.37B
YoY Revenue Growth+3.41%
Earnings Announcement Details
QuarterQ3 2026
Date10/20/2026
TimeAfter Close
Conference CallTuesday, October 20, 2026
CH:CFX Upcoming Earnings
Capital One Financial's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:CFX Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Capital One reported solid earnings, revenue and loan growth, improved domestic card credit, expanding payment-network volume, commercial banking growth, a higher net interest margin, and approximately $1.8 billion of annualized combined Discover synergies achieved ahead of schedule. The company also highlighted progress with Brex, Discover technology conversion, premium cards, AI, and long-term resilience. Offsetting issues included lower liquidity and deposits, continued Discover loan contraction, sequentially higher auto credit losses and delinquencies, elevated marketing and technology investment, and uncertainty around the Visa-Mastercard settlement. Management remained confident that the Discover deal's earnings power is visible and consistent with the original expectations.Company Guidance
Strong Third-Quarter Earnings and Pre-Provision Growth
Capital One earned $3.5 billion, or $5.61 per diluted common share, in the third quarter. Excluding Discover and Brex acquisition-related adjusting items, adjusted earnings per share were $6.69. Linked-quarter revenue increased 3%, non-interest expense declined 2%, and pre-provision earnings grew 10%; on an adjusted basis, pre-provision earnings grew 9% quarter over quarter.
Credit Loss Provision Declined and Allowance Release Recorded
The provision for credit losses decreased $73 million, or 2%, to $2.9 billion. The provision included $3.1 billion of net charge-offs and a $225 million allowance release. The allowance balance ended at $22.7 billion, with total portfolio coverage at 4.92%, down 10 basis points.
Domestic Card Purchase Volume and Revenue Growth
Domestic card purchase volume grew 11% year-over-year, primarily driven by legacy Capital One purchase volume. Ending loan balances increased about 2% year-over-year, while revenue increased 5%, driven by growth in legacy Capital One purchase volume and loans.
Domestic Card Credit Performance Improved
The domestic card charge-off rate was 3.98%, down 73 basis points from the prior quarter and down 65 basis points year-over-year. The delinquency rate was 3.74% at quarter end, down 15 basis points from a year ago; management said the 35-basis-point linked-quarter increase was in line with normal seasonality. Improvement in charge-offs was attributed to earlier delinquency improvement and strong recoveries performance.
Consumer Banking Revenue and Loan Growth
Consumer banking ending loan balances increased about $11 billion, or 13%, year-over-year, while average loans increased 12%. Consumer banking revenue increased about 17%, driven predominantly by Discover revenue synergies and auto-loan growth. Auto originations increased 22% from the prior-year quarter.
Global Payment Network Expansion
Global Payment Network transaction volume was approximately $191 billion, an increase of 25% compared with the third quarter of 2025. The increase was driven primarily by the successful conversion of Capital One debit customers to the Discover Network.
Commercial Banking Growth and Credit Quality
Commercial banking ending and average loan balances increased about 1% from the linked quarter, as did ending and average deposits. Revenue increased 6%, driven by strong growth in non-interest income, while non-interest expense increased about 1%. The commercial banking net charge-off rate for the second quarter was 0%; the criticized performing loan rate declined four basis points to 4.4%, and the criticized non-performing loan rate declined 10 basis points to 1.22%.
Net Interest Margin Expansion
Third-quarter net interest margin was 8.41%, up 40 basis points from the prior quarter. The increase was driven by higher yield in domestic card, a $13 billion decline in average cash balances, and an additional day in the quarter. Management said the structural impacts of the Discover acquisition on NIM have largely played out.
Discover Integration Synergies Ahead of Schedule
Management said the Discover integration continues to go well and that expected synergies are being achieved ahead of schedule. Year-to-date results reflected about $1.8 billion of annualized combined synergies, primarily from the successful debit conversion early in 2026 and the pace of expense synergies.
Brex Technology and Product Integration Opportunities
Management described Brex as having a full modern technology stack, strong technology capabilities, and valuable spend-management tools. Capital One is targeting integration of Brex's spend-management platform with Capital One Travel, integration of Brex banking services with Capital One's payment capabilities, and eventual use of Brex tools to enhance offerings for existing small-business customers. Capital One has already established a high-potential lead-sharing program with Brex and reported promising early results.
Discover Network Migration Progress
As of the end of September, 100% of Discover Card originations were on Capital One's technology stack, and the back-book conversion is expected to be completed in the first quarter. Capital One is testing which customers and products to move to the Discover Network and when, while also investing in global acceptance and the Discover brand. Management said the migration will be gradual rather than a 'big bang.'
Improving Discover Origination Momentum
Discover Card new originations were up year-over-year for the first time since the deal closed. Management said customer-management programs are resuming as the back book converts, although the resulting activity will take time to turn into loans.
Premium Card and Heavy-Spender Traction
Management said the fastest-growing part of the card business continues to be heavier spenders and that Venture X has strong customer engagement, traction, and competitive positioning as a straightforward high-value product. Capital One reported positive validation through customer growth, annuities, attrition rates, and charge-off rates, and said it remains focused on building at the top of the market.
Technology, Data, and AI Investment Position
Capital One continues to invest in modern technology, data, and AI. Management said its technology transformation, begun in 2013, was designed around an AI objective function and supports potential applications across customer experience, software development, credit, marketing, risk management, fraud, operations, servicing, and cybersecurity. Management said the company is bullish on these opportunities and expects continued investment.
Capital Position and Deposit Franchise
The common equity Tier 1 capital ratio ended the quarter at 13.8%, roughly flat with the second quarter. Despite a 1% linked-quarter decline in deposits, management said the deposit book had grown approximately 3.5% over the last year and described the franchise as having a high-insurance-percentage, deep-customer-relationship business.
Long-Term Resilience Initiatives
Management said Capital One underwrites to worsening scenarios, evaluates the resilience of its businesses, maintains a conservative capital philosophy, and has a lower-risk business mix with more spender-led activity and heavy-spender exposure than in the past. The company also uses real-time, full-file, automated monitoring, including AI-based monitoring in some areas, with root-cause diagnosis and suggested solutions.
Planned Marketing and Growth Investment
Capital One expects to lean harder into marketing in 2027, including renewed Discover marketing. Management said growth areas such as heavy spenders, Capital One Shopping, and national banking require more marketing but represent franchises with lower risk, lower capital, and long-term revenue annuities. Total-company marketing was about $1.6 billion in the quarter, and fourth-quarter marketing growth is expected to be similar to the Q3-to-Q4 percentage growth seen in 2025, primarily due to seasonality.
CH:CFX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed