Capital One Beats Q3 Estimates on Rising Revenue and Lower Credit Losses, Shares Jump 4%

COF reported third-quarter 2026 net income of $3.5 billion, or $5.61 per diluted share. On an adjusted basis, earnings were $6.69 per share, beating the $5.50 analyst consensus by $1.19. Revenue of $16.31 billion came in slightly above the $16.25 billion estimate, and was reported as up about 6% from a year earlier. The shares jumped about 4% after the results, which were released after the market close, so the move reflects after-hours trading rather than a regular-session close.

The headline beat was on adjusted EPS, while revenue was only modestly ahead of expectations. Lower credit costs were part of the story: the provision for credit losses fell $73 million to $2.9 billion, and that figure included a $225 million loan reserve release. Net charge-offs were still $3.1 billion, and non-interest expense fell 2% to $8.9 billion. Net interest margin widened 40 basis points from the second quarter to 8.41%. Seeking Alpha's coverage likewise pointed to the lower provision and expenses as the drivers of the beat.

Credit quality was mixed. The domestic card net charge-off rate declined to 3.98% from 4.71% in the previous quarter, but domestic card delinquencies of 30 days or more rose to 3.74% from 3.39%. Deposits declined $3.6 billion to $480.7 billion. The Discover integration remains a cost item: the company's release showed $338 million of pre-tax Discover integration expenses in its adjusting items, and management said the integration continues to go well with progress toward the expected synergies.

Investors may watch whether the rise in card delinquencies continues, how much of the provision decline reflects one-time reserve releases, and how integration costs trend in coming quarters.