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# Capital One Third-Quarter Net Income Rises To $3.5 Billion From $3.0 Billion In Second Quarter
- URL: https://www.bullished.co/capital-one-third-quarter-net-income-rises-to-3-5-billion-from-3-0-billion-in-second-ef27bfae/
- Published: 2026-10-20T20:17:01.000Z
- Updated: 2026-10-20T20:17:01.000Z
- Description: Provision for credit losses eased to $2.9 billion, with a $225 million reserve release, as net interest margin reached 8.41%.
- Author: Matteo Parrino
- Tags: Earnings, COF, Industry: Financials

[Capital One](https://www.bullished.co/tag/cof/) reported third-quarter net income of [$3.5 billion](https://www.businesswire.com/news/home/20261019860363/en/Capital-One-Reports-Third-Quarter-2026-Net-Income-of-%243.5-billion-or-%245.61-per-share?ref=bullished.co), or $5.61 per diluted share, in an earnings release furnished with an [8-K](https://www.sec.gov/Archives/edgar/data/0000927628/000092762826000142/cof-20261020.htm?ref=bullished.co) on Tuesday. That compares with $3.0 billion, or $4.73, in the second quarter and $3.2 billion, or $4.83, in the third quarter of 2025.

## What the earnings release says

Excluding adjusting items, earnings were [$6.69 per diluted share](https://www.businesswire.com/news/home/20261019860363/en/Capital-One-Reports-Third-Quarter-2026-Net-Income-of-%243.5-billion-or-%245.61-per-share?ref=bullished.co), an adjusted measure. The adjustments were acquisition amortization of $483 million before tax, Discover integration expenses of $338 million and Brex integration expenses of $47 million.

Total net revenue rose 3% from the second quarter to $16.3 billion. Non-interest expense fell 2% to $8.9 billion, with marketing down 4% and operating expenses down 2%.

Pre-provision earnings, which is revenue less non-interest expense, rose 10% to $7.5 billion.

The provision for credit losses, the money set aside for bad loans, fell $73 million to $2.9 billion. That figure includes a $225 million loan reserve release. Net charge-offs, the loans written off as uncollectible net of recoveries, were $3.1 billion, down from $3.6 billion in the second quarter, according to the [financial supplement](https://www.sec.gov/Archives/edgar/data/0000927628/000092762826000142/ex992q32026earningsrelease.htm?ref=bullished.co).

Net interest margin rose 40 basis points, or 0.40 percentage points, to 8.41%. The efficiency ratio was 54.19%.

## Balance sheet and credit detail

The preliminary common equity Tier 1 capital ratio, a regulatory measure of the capital cushion, was 13.8% at September 30, 2026\. Regulatory capital figures are preliminary and subject to change.

Loans held for investment rose $5.4 billion, or 1%, to $462.5 billion. Period-end deposits fell $3.6 billion, or 1%, to $480.7 billion.

CEO Richard D. Fairbank, the company's founder and chairman, said "The Discover integration continues to go well and we’re making good progress on delivering the expected synergies."

## What to watch

Capital One held its earnings call at 5:00 p.m. ET on Tuesday. A webcast replay is archived on the company's website through November 3, 2026.

The supplement says its figures are preliminary, and points readers to the quarterly 10-Q once it is filed.

### Sources

- [8-K Filing — CAPITAL ONE FINANCIAL CORP (COF)](https://www.sec.gov/Archives/edgar/data/0000927628/000092762826000142/cof-20261020.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex991q32026earningsrelease.htm — CAPITAL ONE FINANCIAL CORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000927628/000092762826000142/ex991q32026earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex992q32026earningsrelease.htm — CAPITAL ONE FINANCIAL CORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000927628/000092762826000142/ex992q32026earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [How Upcoming Earnings Will Impact Capital One Stock Investors](https://finance.yahoo.com/markets/stocks/articles/upcoming-earnings-impact-capital-one-052114108.html?ref=bullished.co) — Yahoo Finance
- [Capital One Reports Third Quarter 2026 Net Income of $3.5 billion, or $5.61 per share](https://www.businesswire.com/news/home/20261019860363/en/Capital-One-Reports-Third-Quarter-2026-Net-Income-of-%243.5-billion-or-%245.61-per-share?ref=bullished.co) — businesswire.com

### More on Capital One Financial

- [Capital One's September Card Charge-Offs Ran At 3.66%, Auto Delinquencies At 4.64%](https://www.bullished.co/capital-ones-september-card-charge-offs-ran-at-3-66-auto-delinquencies-at-4-64-658061d2/)

[All Capital One Financial (COF) coverage →](https://www.bullished.co/tag/cof/)