Capital One reported third quarter 2026 results that exceeded analyst expectations on both revenue and earnings, supported by significant expansion in net interest margin and effective expense management. Total net revenue reached $16.34 billion, while the company continues to navigate integration costs associated with its Discover acquisition.
Key Highlights
- Net interest margin expanded 40 basis points sequentially to 8.41%, driven by the continued optimization of the Discover acquisition.
- Provision for credit losses decreased to $2.92 billion, which included a $225 million loan reserve release despite $3.12 billion in net charge-offs.
- Adjusted diluted EPS was $6.69, excluding $0.88 per share in acquisition-related amortization and integration expenses for Discover and Brex.
- Common Equity Tier 1 capital ratio remained robust at 13.8%, providing a solid buffer for ongoing integration and capital management.