Capital One Financial Corporation Q3 2026 Earnings Recap

Capital One’s shares rose 2.5%, a roughly flat reaction. Results included higher net interest margin and improving card charge-offs, alongside a decline in liquidity reserves and higher domestic card expenses.

Key Takeaways

• Third-quarter earnings were $3.5 billion, or $5.61 per diluted share; adjusted earnings per share, net of acquisition-related items, were $6.69.
• Linked-quarter revenue rose 3% and non-interest expense fell 2%, lifting pre-provision earnings 10%; provision for credit losses declined 2% to $2.9 billion.
• Net interest margin increased 40 basis points sequentially to 8.41%, partly reflecting a $13 billion decline in average cash balances.
• Domestic card purchase volume grew 11% year over year and revenue rose 5%; charge-offs fell 65 basis points year over year to 3.98%, while delinquency was 3.74%, down 15 basis points year over year.
• Domestic card non-interest expense rose 9% year over year, and total-company marketing expense increased 14% to about $1.6 billion. Liquidity reserves declined $10 billion sequentially to about $134 billion.