-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
COF reported mixed Q1 2026 results, with operating EPS of $4.42 vs. $4.06 prior year missing consensus by $0.15, marking the second consecutive earnings miss. Revenue of $15.2B also missed estimates by $134M, with results not directly comparable due to the Discover Financial acquisition completed May 18, 2025. Net interest margin compressed 39 bps to 7.87% amid the competitive deposit pricing environment, though it remains well above pre-Discover levels, while total net revenue declined 2% sequentially. The provision for credit losses decreased modestly to $4.1B, while 30+ day delinquency rates improved 35 bps to 3.24%, suggesting potential credit quality improvement ahead. Period-end loans declined 1% to $448B, reflecting continued selective credit tightening, while deposits grew 3% to $489B, providing stable funding. The CET1 ratio of 14.4% remains well above regulatory requirements, providing ample flexibility for future growth and capital returns.