Capital One

COF Q2 2025 Earnings

Reported Jul 22, 2025 at 4:05 PM ET · SEC Source

Q2 25 EPS

$5.48

BEAT +54.02%

Est. $3.56

Q2 25 Revenue

$12.49B

MISS 1.61%

Est. $12.70B

vs S&P Since Q2 25

-27.4%

TRAILING MARKET

COF -13.8% vs S&P +13.6%

Market Reaction

Did COF Beat Earnings? Q2 2025 Results

Capital One Financial delivered a headline-beating quarter in Q2 2025, with adjusted earnings of $5.48 per diluted share clearing the $3.58 consensus estimate by 54.02%, even as the Discover Financial Services acquisition reshaped virtually every lin… Read more Capital One Financial delivered a headline-beating quarter in Q2 2025, with adjusted earnings of $5.48 per diluted share clearing the $3.58 consensus estimate by 54.02%, even as the Discover Financial Services acquisition reshaped virtually every line of the income statement. Revenue came in at $12.49 billion, a modest 1.61% below expectations and down 5.7% year-over-year, though the sequential picture told a different story, with net revenue climbing 25% as Discover's partial-quarter contribution flowed through. The defining event of the period was the May 18 closing of the Discover deal, which triggered an $8.77 billion initial loan allowance build that inflated the provision for credit losses to $11.43 billion and produced a GAAP net loss of $4.28 billion; stripped of those one-time charges, the underlying business showed genuine momentum, with net interest margin expanding 69 basis points to 7.62% and the domestic card charge-off rate improving sharply to 5.25%. Total assets reached $658.97 billion, and CEO Richard Fairbank described the company as fully mobilized on integration, though analysts note that integration costs are already tracking above the initial $2.8 billion estimate, signaling a multi-year investment ahead.

Key Takeaways

  • Discover acquisition completed May 18, 2025, adding significant scale to credit card and deposit portfolios
  • Net interest margin expanded 69 basis points QoQ to 7.62%
  • Total net revenue increased 25% sequentially and 31% YoY
  • Net charge-off rate improved 16 basis points QoQ to 3.24%
  • Credit Card purchase volume grew 28% QoQ to $201.5 billion
  • Domestic Card 30+ day delinquency rate improved 65 bps QoQ to 3.60%
  • Auto loan originations increased 18% QoQ to $10.9 billion
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COF YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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COF Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We completed our acquisition of Discover on May 18th. We're fully mobilized and hard at work on integration which is going well.”

— Richard D. Fairbank, Q2 2025 Earnings Press Release