Capital One Financial Corporation (COF) reported a Q2 earnings surge on Tuesday, posting a 74% increase in earnings per share (EPS) to $5.48, exceeding expectations by 43%. Total revenue rose 31% to $12.49 billion, surpassing analyst estimates of $12.22 billion.
The earnings were driven in part by the recent acquisition of Discover Financial Services, which added $2 billion in revenue. Despite a GAAP net loss of $4.3 billion due to one-time charges from the acquisition, Capital One saw credit card loans increase by 72% to $269.7 billion and deposits rise by 27% to $468.1 billion.
For the full fiscal year 2025, Capital One projects a revenue increase of 36% to $53.29 billion and earnings per share target of $15.25, while maintaining a forward earnings multiple of 14x, significantly lower than Visa and Mastercard’s multiples of 30x and 34x, respectively.
