$COF · CAPITAL ONE FINANCIAL CORP
Capital One filed its Q3 2026 10-Q, reporting net income of $3.539B on revenue of $16.344B (+6.4% YoY). GAAP EPS was $5.61. The Credit Card segment drove results with net charge-off rates improving 60bps YoY to 4.01% and purchase volume up 11%. The quarter reflects the first full-year comparisons incorporating the Discover acquisition (closed May 2025) and the Brex acquisition (closed April 2026).
- Q3 net income of $3.539B vs $3.193B in Q3 2025, driven by 6.4% revenue growth and lower provisions.
- Credit Card net charge-off rate fell to 4.01% from 4.61% YoY, a 60bps improvement.
- Total net revenue margin expanded 31bps YoY to 10.67%, with net interest margin up 5bps to 8.41%.
- Purchase volume grew 11% YoY to $254.7B; Global Payment Network volume surged 25% to $190.9B.
- CET1 capital ratio declined to 13.8% from 14.3% at year-end 2025, reflecting acquisition impacts.
Extended-hours trading shows COF at $208.00, down 0.34% from the regular close of $208.71 — a muted reaction despite strong earnings, likely reflecting the CET1 ratio compression and broader macro caution.
Capital One's Q3 shows the Discover acquisition paying off through credit improvement and payment-network scale, but declining capital ratios raise questions about buyback capacity and regulatory flexibility.
Capital One's credit card net charge-off improvement to 4.01% outpaces many regional bank peers, while the Discover and Brex integrations position COF as a scaled payments competitor against American Express and JPMorgan Chase.
CET1 capital ratio eroded 50bps from year-end 2025 to 13.8%, and the allowance coverage ratio declined 24bps to 4.92%, signaling reduced credit buffers. The Brex acquisition added $1.1B in debt payoff and integration risk.