COF · Q2 FY2026
CAPITAL ONE FINANCIAL CORP Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $15.85B | $12.49B (yr ago) | Beat |
| EPS | $4.73 | -$8.58 (yr ago) | Beat |
| Free Cash Flow | Not meaningful for a bank | Not meaningful for a bank | Miss |
| Gross Margin | Not meaningful for a bank | Not meaningful for a bank | Miss |
| Operating Margin | 24.1% pre-tax margin | -47.5% pre-tax margin (yr ago) | Beat |
What changed
Revenue rose to $15.85 billion from $12.49 billion a year earlier, while reported EPS recovered to $4.73 from a loss of $8.58. Sequentially, a $1.1 billion decline in credit-loss provision, including a $662 million reserve release, helped lift pre-tax margin to 24.1%, although non-interest expense increased 7% to $9.0 billion.
Impact on the investment thesis
Fair value remains $225 because stronger revenue, net interest margin and credit performance support the earnings-normalization thesis, but the reserve release and continuing integration expenses make the full quarterly EPS run rate unsuitable for capitalization.