Capital One posts $3.5 billion profit, beats estimates
Key Facts
Capital One reported net income of $3.5 billion in the third quarter of 2026, with adjusted earnings per share and revenue exceeding analysts' estimates. Reported diluted earnings per share were $5.61, according to the company's statement, while profit rose from the same period a year earlier. The company had recorded net income of $3.2 billion in the third quarter of 2025, according to the comparison in its earnings release. Diluted earnings per share in that period were $4.83, compared with the reported figure for the current period. The earnings announcement on October 20, 2026 was accompanied by a rise in the shares in extended evening trading, according to Benzinga's coverage published that day.
Excluding adjusting items, adjusted earnings per share were $6.69 in the third quarter, according to Capital One's statement, exceeding analysts' estimates for the measure. The consensus estimate was $5.50 per share, according to Benzinga Pro data cited in the earnings coverage, putting adjusted earnings above expectations. Quarterly revenue also beat expectations, reaching $16.34 billion against estimates of $16.26 billion, according to Benzinga. The platform said in its coverage: "Quarterly revenue was $16.34 billion, exceeding market estimates of $16.26 billion." On lending income, the company's net interest margin was 8.41% in the third quarter of 2026, according to its earnings presentation.
On credit costs, Capital One's provision for credit losses fell to $2.9 billion in the third quarter, according to the company's official announcement. That was a decline of $73 million from the previous quarter, marking a quarterly reduction in the amounts set aside to cover credit losses. The decline coincided with a loan reserve release of $225 million during the period, according to figures Capital One disclosed in its results. The company attributed the reserve release primarily to domestic cards, citing the business's "favorable credit performance" during the quarter in its earnings presentation. Meanwhile, company-wide net charge-offs totaled $3.1 billion in the same period, according to the earnings statement.
Within the domestic card portfolio, the net charge-off rate was 3.98% in the third quarter of 2026, according to the company's earnings presentation. The delinquency rate for payments more than 30 days past due in the same business was 3.74% during the period, according to the presentation. Both rates were included in the results of the business Capital One identified as the main driver of the loan reserve release during the third quarter. On operating costs, the company reported a decline in expenses from the previous quarter, according to the earnings announcement, alongside the reduction in provisions for credit losses. Non-interest expenses totaled $8,856 million in the third quarter of 2026, according to figures in the company's quarterly earnings presentation.
On the balance sheet, Capital One's loans held for investment totaled $462.5 billion at the end of September 2026, according to the company's announcement. On funding, the company ended the period with total deposits of $480.7 billion, according to the balances reported in its third-quarter earnings statement. Deposits at the end of the period exceeded loans held for investment, according to the reported values for both items on the same date. Liquidity reserves stood at $133.8 billion at the end of September, according to the earnings presentation, alongside the loan and deposit balances disclosed by the company. The preliminary common equity Tier 1 capital ratio was 13.8% at the end of the period, according to Capital One's presentation of its third-quarter 2026 results.
On shareholder returns, Capital One repurchased $2.6 billion of shares during the third quarter of 2026. The company disclosed the amount in its quarterly earnings presentation, alongside its liquidity balances and preliminary capital ratio at the end of September. In the market, the company's shares rose in extended evening trading on the day of the earnings announcement, according to Benzinga's report dated October 20, 2026. The share move followed results in which adjusted earnings per share and third-quarter revenue exceeded the analysts' estimates cited by the platform in its coverage. To discuss the period's financial results, Capital One scheduled a webcast for October 20, 2026, according to the company's earnings conference announcement.