Capital One

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Tuesday’s Featured Story

Capital One Just Flashed a Buy Signal—New Highs Could Be Next

Written by Chris Markoch. Published 10/23/2025. 

In this photo the logo of Capital One Company is displayed on a smartphone screen

Key Points

  • Capital One’s first full quarter since the Discover merger delivered strong upside, with beats across key financial metrics and a boost in margins.
  • Credit performance held steady, easing concerns heading into earnings season and showing resilience in the lending environment.
  • A sizable buyback and dividend increase reflect management’s confidence, while analyst upgrades and price action point toward a potential move to new highs.

Capital One Financial Corp. (NYSE: COF) left little doubt for investors who had been on the fence.

The company delivered a strong earnings report. Based on the stock move and analysts’ reactions immediately after the release, the setup looks like a favorable buying opportunity.

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COF stock rose about 3.39% in midday trading following the earnings, approaching its all-time high. Although modest, this move likely signals the beginning of a larger upward trend.

Capital One Checked All the Boxes

Capital One completed its merger with Discover Financial in May, making this the first fully inclusive earnings report since the deal closed. The impact was clearly positive.

Revenue of $15.36 billion beat expectations of $15.06 billion and was roughly 23% higher than the prior quarter. Adjusted earnings per share (EPS) of $5.95 topped estimates of $4.25 and rose about 8.5% from the previous quarter. The company’s net interest margin increased to 8.36% — up approximately 75 basis points, with about 45 basis points attributable to Discover.

Heading into earnings season, investors in financial stocks that extend credit were watching two items closely: the provision for credit losses and the net charge-off ratio. Capital One faced particular scrutiny because of Discover’s recent data.

Those concerns largely dissipated. Capital One reported:

  • A smaller-than-expected provision for credit losses of $2.71 billion (up from $2.48 billion a year earlier).
  • A net charge-off ratio that declined to 3.16%, down from 3.27% a year ago.

Buybacks and Dividend Increases Are Bullish for Shareholders

Shareholders received additional positive news when Capital One announced a new $16 billion share repurchase program effective immediately. The buyback equals nearly 12% of the company’s current market capitalization and replaces the authorization issued in April 2022.

The company also raised its quarterly dividend by 33%, from $0.60 per share to $0.80, beginning with the next distribution.

COF Stock Has a Bullish Setup for New Highs

COF is trading near the upper Bollinger band and has an RSI around 58 (not shown). That combination is mildly bullish without being overbought.

Historically, moves to the upper band have often led to brief pullbacks or consolidation rather than steep declines. Those corrections have tended to be modest.

COF stock chart

The MACD shows only minimal separation after a bullish crossover, suggesting momentum is present but not overheated.

Investors should watch for signs of sustained momentum following this post-earnings lift, which may be amplified in the near term by high-frequency trading.

Even if a pullback occurs, the stock is unlikely to fall all the way back to the $202 level, which acted as support on two occasions in the past 30 days.

Near-term support/resistance interest may form around $214. Analysts have already been active following the report.

The Capital One analyst forecasts on MarketBeatshow five analysts raising their price targets and one analyst reiterating a target. In all but one case, the revised targets are above the consensus price target of $258.89.

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