Capital One Expected to Report Synergies From Discover Acquisition in 4Q -- Earnings Preview

Dow Jones02:10

By Elias Schisgall

Capital One Financial is expected to release its fourth-quarter financial results after the bell on Thursday. Here's what you need to know.

EARNINGS PER SHARE: Capital One is expected to report fourth-quarter earnings of $3.14 a share, according to analysts polled by FactSet. The credit-card company posted earnings of $2.67 a share in the same quarter a year earlier.

ADJUSTED EARNINGS: Stripping out certain one-time items, analysts expect Capital One to report adjusted earnings of $4.14 a share.

REVENUE: The company is expected to report $15.47 billion in revenue, according to FactSet. It reported $10.19 billion in revenue a year earlier.

WHAT TO WATCH:

-- Capital One swung to a loss in the second quarter due to the finalization of its $35 billion acquisition of Discover, which also put a small dent in the company's third-quarter profit. But synergies from the deal are beginning to be realized, Morgan Stanley analysts write in a note, potentially serving as a key catalyst for the stock.

-- President Trump rocked the credit world last week when he announced that he would seek to temporarily cap credit-card interest rates at 10%, sending credit-card company stocks including Capital One down. Capital One is among the most exposed companies to an interest rate cap, JPMorgan analysts write in a note. Morgan Stanley analysts don't expect the rate cap to be implemented, but they acknowledge headline risks in the near-term. They expect credit-card company management to discuss the downstream effects of a potential rate cap, including lower consumer credit availability, while having a conciliatory attitude toward affordability solutions.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

January 21, 2026 13:10 ET (18:10 GMT)

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