Q1 25 EPS
$4.06
BEAT +11.19%
Est. $3.65
Q1 25 Revenue
$10.00B
MISS 0.49%
Est. $10.05B
vs S&P Since Q1 25
-23.4%
TRAILING MARKET
COF +11.2% vs S&P +34.6%
Market Reaction
Did COF Beat Earnings? Q1 2025 Results
Capital One delivered a strong first-quarter beat on the bottom line, posting adjusted diluted EPS of $4.06 against a consensus estimate of $3.65, a beat of 11.19%, even as revenue of $10.00 billion came in fractionally below the $10.05 billion estim… Read more Capital One delivered a strong first-quarter beat on the bottom line, posting adjusted diluted EPS of $4.06 against a consensus estimate of $3.65, a beat of 11.19%, even as revenue of $10.00 billion came in fractionally below the $10.05 billion estimate. The headline earnings story was shaped by improving credit conditions, with the provision for credit losses falling 12% year-over-year to $2.37 billion and a $368.00 million loan reserve release bolstering profitability, while net interest margin expanded 24 basis points year-over-year to 6.93%. Revenue fell 23.6% year-over-year on a reported basis, reflecting the impact of the Walmart program termination, though net interest income still rose 7% year-over-year to $8.01 billion. The quarter's defining development, however, was the receipt of regulatory approval for Capital One's pending acquisition of Discover Financial Services, with CEO Richard Fairbank confirming the transaction is set to close May 18, 2025, positioning the combined company as what Fairbank described as a leading consumer banking and payments platform.
Key Takeaways
- • Net interest income grew 7% year-over-year to $8.0 billion driven by higher net interest margin
- • Net interest margin of 6.93%, up 24 basis points year-over-year
- • Walmart program termination contributed approximately 20 basis points to net interest margin
- • Provision for credit losses decreased 12% year-over-year with $368 million loan reserve release
- • Total non-interest expense decreased 3% sequentially driven by 13% decline in marketing
- • 30+ day performing delinquency rate improved to 3.29% from 3.40% year-over-year
- • Credit Card segment net income grew 27% year-over-year to $1.2 billion
- • Auto loan originations of $9.2 billion, up 22% year-over-year
COF YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
COF Revenue by Segment
With YoY comparisons, source: SEC Filings
“Last week, we received regulatory approval for our acquisition of Discover and we're fully mobilized to complete the transaction on May 18th. The combination of Capital One and Discover will create a leading consumer banking and payments platform with unique capabilities, modern technology, and powerful brands. It leverages Capital One's technology transformation and digital capabilities across a significantly larger customer franchise. And it offers the potential to enhance competition and create significant value for merchants and customers.”
— Richard D. Fairbank, Q1 2025 Earnings Press Release
COF Earnings Trends
COF vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
COF EPS Trend
Earnings per share: estimate vs actual
COF Revenue Trend
Quarterly revenue: estimate vs actual
COF Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $4.42 | — | $15.23B | — |
| Q4 25 MISS FY | $4.14 | $3.86 | -6.76% | $15.58B | +310.69% |
| FY Full Year | $19.76 | $4.03 | -79.61% | $53.43B | +0.20% |
| Q3 25 BEAT | $4.36 | $4.83 | +10.73% | $15.36B | +1.83% |
| Q2 25 BEAT | $3.56 | $5.48 | +54.02% | $12.49B | -1.61% |
| Q1 25 BEAT | $3.65 | $4.06 | +11.19% | $10.00B | -0.49% |