CAPITAL ONE FINANCIAL (COF) Company Report

Capital One is on track to achieve $2.5 billion of combined revenue and expense synergies by Q2 2027; the debit conversion is largely complete with revenue synergies beginning to ramp, while expense synergies are back-loaded into the later stages of integration.
The acquisition of Brex adds a fully vertically integrated tech stack, which Capital One views as a key growth vector in business payments and plans to support with significant additional investment.
Management described the U.S. consumer credit portfolio as stable, noting delinquencies improved through mid-2025 before flattening and legacy Capital One card outstandings grew 3.3% year-over-year in Q4.
Near-term pressure on the efficiency ratio is expected from increased investments in technology transformation, Discover network expansion, and Brex integration, while long-term earnings power targets remain unchanged.
In Q4, Capital One raised its dividend by 33% to $0.80 per share and repurchased $2.5 billion of stock, ending the quarter with a 14.3% CET1 ratio and retaining flexibility to adjust repurchase pace under SCB rules.

Feb 10, 2026, 7:40 PM

Transcript

Capital One outlines Discover integration progress and strategic priorities at UBS conference

COF

M&A

Share Buyback

New Projects/Investments

Capital One is on track to realize $2.5 billion of combined revenue and expense synergies from the Discover acquisition by Q2 2027; the debit network conversion is complete and the company plans to migrate $175 billion of card spend onto the Discover network as the next phase.
Despite headwinds from the Discover growth brownout and increased investments—particularly around tech transformation and the Brex acquisition—the company expects earnings power post-integration to remain consistent with initial projections, supported by stronger-than-expected margins from in-sourcing the Walmart portfolio and robust retail deposit growth.
The consumer credit portfolio is characterized as “stable,” with standalone credit card outstandings growing 3.3% year-over-year in Q4 2025; delinquencies improved through August 2025 and have since leveled off evenly across credit segments.
Capital One’s digital-first retail banking platform, combining showroom-style branches with full-service digital offerings, operates on a no-fees, no-minimums, no-overdraft-fees model and continues to attract deposits at a higher-than-expected rate, enhancing overall margin profile.
The firm repurchased $2.5 billion of stock in Q4 2025, ending the quarter with a CET1 ratio of 14.3%, well above its long-term capital target of 11%, and retains flexibility to adjust buybacks under SCB requirements through 2027.

Feb 10, 2026, 7:40 PM

Transcript

Capital One details M&A integration and capital return plan

COF

M&A

Share Buyback

Dividends

Capital One is on track to deliver $2.5 billion of combined synergies from the Discover integration by Q2 2027 through completed debit conversion and back-loaded expense actions.
The Brex acquisition will leverage Brex’s vertically integrated tech stack alongside Capital One’s platform to accelerate innovation in business payments.
Consumer card portfolios show stable trends, with Q4 standalone outstandings growth of 3.3% and delinquencies improving through August 2025 before flattening across FICO cohorts.
Capital One has fully migrated its debit portfolio onto the Discover network and plans to migrate $175 billion of credit spend by early 2027, while investing in international acceptance and brand.
The firm repurchased $2.5 billion of shares in Q4, raised its dividend by 33% to $0.80, ended the year with 14.3% CET1, and retains flexibility to adjust buybacks under SCB limits until October 2027.

Feb 10, 2026, 7:40 PM

Transcript

Capital One Financial completes $3B fixed-to-floating rate senior note offering

COF

Debt Issuance

Completed a $3.0 billion dual-tranche senior note offering on Feb 2, 2026: $1.5 billion of 4.722% notes due Jan 30, 2032 and $1.5 billion of 5.399% notes due Jan 30, 2037.
2032 notes: 4.722% fixed to Jan 30, 2031 (Interest Reset Date), then reset quarterly at SOFR + 115 bps; priced at 100% with net proceeds of $1.49475 billion; callable at par from Jan 30, 2031.
2037 notes: 5.399% fixed to Jan 30, 2036, then reset quarterly at SOFR + 150.8 bps; priced at 100% with net proceeds of $1.49325 billion; callable at par from Jan 30, 2036.
Notes are senior unsecured, pari passu with existing debt, registered on Form S-3, and expected to be rated Baa1 (stable)/BBB (positive)/A- (stable).

Feb 2, 2026, 9:09 PM

8-K

Capital One to acquire Brex for $5.15B

COF

M&A

Earnings

Capital One agreed to acquire fintech Brex for $5.15 billion in a roughly 50/50 cash-and-stock deal, expected to close by mid-2026 pending regulatory approval.
The acquisition adds an AI-native corporate cards and expense-management platform serving about 30,000 companies, plus Brex’s stablecoin payments and faster settlement capabilities.
Announced alongside mixed Q4 results: net income nearly doubled to $2.13 billion, adjusted EPS of $3.86 missed estimates, provisions for credit losses rose 57% to $4.14 billion, and net interest income from credit cards increased 64% to $9.48 billion.
Executives and analysts say the deal accelerates Capital One’s payments-tech strategy by securing embedded customer relationships and real-time payment data, though token-based elements will face regulatory scrutiny.

Jan 23, 2026, 6:54 AM

Bloomberg

Capital One reports Q4 2025 results and announces Brex acquisition

COF

Earnings

M&A

Capital One posted Q4 2025 GAAP earnings of $2.1 billion ( $3.26 per diluted share) and adjusted EPS of $3.86; full-year adjusted EPS was $19.61.
The company entered a definitive agreement to acquire Brex for ~3.5% of Capital One’s market cap, with no change to expected Discover integration synergies.
Domestic card purchase volume rose 39% YoY ( 6.2% ex-Discover) and ending loan balances grew 69% YoY ( 3.3% ex); Q4 domestic card charge-off rate was 4.93%, delinquency 3.99%.
Q4 provision for credit losses was $4.1 billion, raising the allowance to $23.4 billion (coverage ratio 5.16%); NIM was 8.26%, liquidity reserves $144 billion (LCR 173%), and CET1 ratio 14.3%.

Jan 22, 2026, 10:00 PM

Transcript

Capital One reports Q4 2025 results and announces Brex acquisition

COF

Earnings

Share Buyback

M&A

Capital One earned $2.1 billion in Q4 2025 ($3.26 per diluted share) and achieved full-year adjusted EPS of $19.61; recognized a $483 million net gain on the sale of its $8.8 billion Discover Home Loans portfolio.
Domestic card purchase volume grew 39% YoY (6.2% ex-Discover) and revenue rose 58% (6.2% ex-Discover), with a 4.93% charge-off rate and 3.99% delinquency rate; consumer banking revenue increased 36% YoY with 8% auto originations growth; commercial banking loans were flat QoQ while deposits rose 4%.
Common equity tier 1 ratio stood at 14.3%, and the firm repurchased $2.5 billion of shares in the quarter.
Agreed to acquire Brex for $5.15 billion in cash and stock (≈3.5% of market cap), aiming to build an integrated business payments and spend management platform with no change to Discover integration synergies or share repurchase plans.

Jan 22, 2026, 10:00 PM

Transcript

Capital One reports Q4 2025 results

COF

Earnings

M&A

Share Buyback

Capital One earned $2.1 billion net income, or $3.26 per diluted share in Q4; adjusted EPS was $3.86 and full-year adjusted EPS was $19.61.
Entered a definitive agreement to acquire Brex for $5.15 billion, or about 3.5% of market capitalization, with no impact on the Discover integration or repurchase pace.
Q4 revenue rose ~1% sequentially while non-interest expense increased 13%; pre-provision earnings declined 12%, and credit loss provisions totaled $4.1 billion (up $1.4 billion vs. Q3).
Domestic card purchase volume grew 39% year-over-year (6.2% ex-Discover) and ending card loans were up 69% YoY (3.3% ex-Discover); the card charge-off rate was 4.93%.
Returned $2.5 billion in share repurchases in the quarter and maintained a CET1 ratio of 14.3% at quarter end.

Jan 22, 2026, 10:00 PM

Transcript

Capital One reports Q4 2025 results

COF

Earnings

M&A

Net income of $2.1 billion, or $3.26 per diluted share in Q4; adjusted EPS of $3.86; full-year net income of $2.5 billion, or $4.03 per share
Pre-provision earnings of $6.2 billion in Q4 (down 12% YoY) and $22.9 billion for full year (up 30%)
Net interest margin decreased 10 bps to 8.26% in Q4; adjusted NIM of 8.28%; full-year NIM up 96 bps to 7.84%
Common equity Tier 1 ratio of 14.3% at December 31, 2025; period-end loans of $453.6 billion (+2%) and deposits of $475.8 billion (+$7.0 billion)
Entered definitive agreement to acquire Brex for $5.15 billion (~50% cash/50% stock), expected to close mid-2026

Jan 22, 2026, 10:00 PM

Presentation

Capital One announces agreement to acquire Brex

COF

M&A

Capital One entered a definitive agreement to acquire Brex for $5.15 billion in a stock-and-cash transaction.
Transaction consideration comprises approximately $2.75 billion in cash and 10.6 million shares of Capital One common stock.
The deal is expected to close in mid-calendar year 2026, subject to customary regulatory and closing conditions.
Brex’s AI-native spend management and payments platform will bolster Capital One’s business payments capabilities; Brex CEO Pedro Franceschi will continue leading the business post-close.
As of December 31, 2025, Capital One held $475.8 billion in deposits and $669.0 billion in total assets.