Capital One stock rose 4.41% to $210.44 in trading on October 21, 2026, following the company’s third-quarter earnings release the previous day. Net income increased to $3.54 billion from $3.19 billion a year earlier, while revenue grew 6.4% to $16.34 billion.
Key Takeaways
- Diluted earnings per share rose to $5.61 from $4.83 in the third quarter of 2025.
- Adjusted earnings were $6.69 per share, excluding acquisition amortization and integration expenses.
- Net interest margin widened from the second quarter, while the provision for credit losses declined.
Table of Contents
- Capital One stock gains after higher quarterly earnings
- Acquisition expenses explain the adjusted earnings gap
- Wider interest margin accompanies lower expenses
- Conclusion
Capital One stock gains after higher quarterly earnings
Shares gained $8.88 from the previous close of $201.56 in the October 21 trading snapshot. The price was not a closing quotation; the stock had traded between $205.24 and $211.49 during the session.
Capital One’s third-quarter 2026 earnings release showed diluted earnings per share increasing 16.1% year over year. Revenue compared with $15.36 billion in the third quarter of 2025. The results also improved sequentially: second-quarter net income was approximately $3.0 billion, or $4.73 per diluted share.
| Item | Details |
|---|---|
| Loans held for investment | $462.5 billion, up $5.4 billion from the second quarter |
| Credit card loans | $276.4 billion, up $952 million from the second quarter |
| Total deposits | $480.7 billion, down $3.6 billion from the second quarter |
| Common equity Tier 1 capital ratio | 13.8%; preliminary and subject to change |
Acquisition expenses explain the adjusted earnings gap
Adjusted net income totaled $4.08 billion, or $6.69 per share. This non-GAAP measure excludes costs included in reported earnings, so the two figures represent different views of the same quarter rather than separate sources of profit.
The adjustments comprised $483 million in pre-tax acquisition amortization expenses, $338 million in Discover integration expenses and $47 million in Brex integration expenses. Their after-tax diluted per-share effects were $0.60, $0.42 and $0.06, respectively.
Chief Executive Officer Richard D. Fairbank said the Discover integration continued to go well and that Capital One was making progress toward expected synergies. That was management’s assessment of ongoing integration work, not a statement that all expected benefits had been delivered.
Wider interest margin accompanies lower expenses
Compared with the second quarter of 2026, total net revenue rose 3%, while non-interest expense fell 2% to $8.9 billion. Net interest margin widened 40 basis points to 8.41%. Together, higher revenue and lower expenses lifted pre-provision earnings, a non-GAAP measure, by 10% to $7.5 billion.
The provision for credit losses declined by $73 million to $2.9 billion. Capital One reported $3.1 billion in net charge-offs and a $225 million loan reserve release, distinguishing realized credit losses from the quarter’s provision expense.
The balance sheet expanded on the lending side even as deposits declined from the preceding quarter. The following figures describe the company’s position at September 30, 2026.
Conclusion
Capital One reported higher earnings and revenue, with sequential improvements in interest margin and expenses alongside continuing integration costs. Investors reviewing management’s discussion of those results can access the earnings webcast replay through November 3, 2026, at 5 p.m. Eastern Time.
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