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Capital One Financial reported second-quarter earnings results on Tuesday that topped expectations while noting signs of improving consumer credit, sending shares slightly higher in after-hours trading.
Capital One, among the largest U.S. lenders, reported per-share earnings of $4.73, topping estimates of $4.03. Revenue rose 27% from a year ago to $15.85 billion, which also topped forecasts, according to FactSet data.
After adjusting earnings for expenses related to integrating Discover and financial-tech startup Brex, earnings were $5.81 per share. That also beat expectations. Those deals closed in May 2025 and April 2026, respectively, with the aim of bolstering Capital One’s cards offerings.
The results showed profits had bounced back from a year ago, when the bank reported a net loss. Expenses tied to its mega-acquisition of Discover Financial Services ate into earnings that quarter.
On Tuesday, Capital One shares rose 0.3% in after-hours trading as the analyst call was underway. The stock is down 17% this year, the worst year-to-date performance since 2019. The S&P 500 is up 9.5% this year.
Results showed several encouraging signs of consumers’ credit quality and economic conditions. Investors have scoured banks’ credit measures as borrowers face persistent inflation and elevated fuel prices.
On a positive note, Capital One lowered its provision for future potential loan losses by $1.1 billion from the first quarter. Across credit cards, the net charge-off rate—referring to debt that management views as unlikely to be recovered—fell to 4.71% from 5.20% a year ago.
Net charge-offs were less rosy in the commercial-banking segment, however, with a rate of 0.53% up from 0.33% from a year ago.
Richard Fairbank, the CEO and founder of Capital One, said in a statement that earnings reflected, in part, “strong credit performance.”
On top of loan portfolio quality, investors have closely tracked expenses as the bank integrates its two big acquisitions.
Capital One said marketing-related expenses rose 23% from a year ago to $1.66 billion, while overall non-interest expenses rose 29% to $9 billion.
Capital One’s report followed larger lenders’ results that also showed positive consumer-credit trends. Net charge-off rates improved across the four largest U.S. banks—JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America—when they released results last week.
Write to Rebecca Ungarino at [email protected]
