| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | 11.3x | 17.3x | Top tier | |
Growth | 92 | 25.4% | 7.1% | Top tier | |
Quality | 59 | — | — | Around median | |
Safety | 23 | — | — | Bottom tier | |
Capital Return | 83 | 0.39% | 0.06% | Top tier | |
Momentum | 57 | -9.0% | -1.7% | Around median | |
Sentiment | 63 | 14 | 3 | Around median |
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Capital One Financial Corporation combines credit cards, consumer banking, and commercial banking, and the acquisition of Discover added ownership of a global payments network to its business model. The company generates income from lending, card services, and payments, and uses deposits to fund its banking operations. Its strategy focuses on attracting high-spending customers, expanding digital banking accounts across the United States, and applying technology and data analytics to credit underwriting.
In quarter 2 of fiscal year 2026 ended 2026-06-30, revenue according to EL7 data was 19.9 billion dollars, net income was 3.0 billion dollars, and diluted earnings per share were 4.73 dollars. The operating margin as calculated by EL7 was 37.0%, while operating cash flow according to EL7 data was 8.4 billion dollars for the same period. These results reflect established profitability, but its sustainability depends on credit quality, Discover integration costs, and investments in marketing and technology.
In quarter 2 of fiscal year 2026 ended 2026-06-30, domestic cards remained the primary driver of credit card segment trends; their purchase volume rose 26% compared with the same quarter of the previous year, primarily because Discover was included for a longer period. In consumer banking, ending loan balances grew approximately 11% compared with the same quarter of the previous year, while global payments network transaction volume reached approximately 190 billion dollars during the quarter. Commercial banking recorded growth of approximately 1% in ending loan balances compared with the previous quarter, illustrating the different pace of expansion across businesses.
Q2 FY2026
When: 2026-10-20
Reported net income compared with 3.0 billion dollars, the level in quarter 2 of fiscal year 2026 ended 2026-06-30
Domestic card net charge-off rate compared with 4.71%, the level in quarter 2 of fiscal year 2026 ended 2026-06-30
The median analyst price target is 250 dollars, within a range of 219 dollars to 280 dollars, a low-confidence indicative estimate based on 4 analysts that reflects their expectations for growth and profitability. The industry-multiple valuation is 221 dollars, within a range of 114 dollars to 434 dollars, and values the company based on its book value at a median multiple of 1.2 across 64 companies. Both methods indicate values within the analyst target range, but the median target is higher than the industry-multiple valuation because the former incorporates growth expectations, while the latter prices book value against a peer-company benchmark. Analyst targets tend to be optimistic by nature, and the wide industry-multiple valuation range and low confidence in the median target limit the accuracy of reducing the valuation to a single number.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Discover added a global payments network to Capital One's lending and card businesses, and the transaction closed in May 2025. In quarter 2 of fiscal year 2026 ended 2026-06-30, network transaction volume reached approximately 190 billion dollars, with the migration of Capital One debit card customers to the network completed. On the 2026-07-21 call, management confirmed that it continued to target the announced total synergies of 2.5 billion dollars, with some operating expense synergies still being implemented.
Domestic card indicators improved in quarter 2 of fiscal year 2026 ended 2026-06-30, with a net charge-off rate of 4.71% and a delinquency rate of 3.39%, down 54 and 21 basis points, respectively, compared with the same quarter of the previous year. However, the auto lending net charge-off rate was 1.43% for the same period, up 18 basis points compared with the same quarter of the previous year. Management linked the increase in auto losses to a change in the loan mix as the share of subprime customers returned to pre-pandemic levels, so the credit picture differs across businesses.
Automated analysis for informational purposes only — not investment advice.
Diluted shares totaled 621.1 million shares in quarter 2 of fiscal year 2026 ended 2026-06-30, versus 505.6 million shares in quarter 2 of fiscal year 2025, an increase of 22.8%. Net income was 3.0 billion dollars and diluted earnings per share were 4.73 dollars in quarter 2 of fiscal year 2026. The larger share base means that assessing the impact of earnings growth on shareholders requires monitoring earnings per share alongside net income, because earnings are spread across a larger number of shares.
The Brex acquisition closed in early April 2026 and was added to the domestic card business in quarter 2 of fiscal year 2026 ended 2026-06-30. Management said Brex and corporate cards provided limited support to the approximately 14% growth in purchase volume in Capital One's legacy business compared with the same quarter of the previous year, while the vast majority of the increase came from accelerating organic growth. The Brex transaction reduced the common equity tier one capital ratio by approximately 40 basis points during quarter 2 of fiscal year 2026, which ended with a ratio of 13.7%.
Net income of 3.0 billion dollars and diluted earnings per share of 4.73 dollars in quarter 2 of fiscal year 2026 ended 2026-06-30 provide a baseline for assessing the sustainability of profitability. The domestic card net charge-off rate of 4.71% for the same period warrants monitoring to determine whether credit improvement continues. The common equity tier one capital ratio of 13.7% at the end of quarter 2 of fiscal year 2026 also helps assess the company's ability to balance lending growth, acquisition integration, and share repurchases.