Capital One Financial Corporation stock declined 8.8 percent on Monday. The company reported fourth quarter 2025 net income of 2.1 billion dollars, or 3.26 dollars per diluted common share, compared with 3.2 billion dollars in the third quarter of 2025. On January 22, 2026, Capital One announced a definitive agreement to acquire Brex Inc. for 5.15 billion dollars. The company also announced plans to acquire Discover Financial Services. Capital One reported earnings per share of 3.86 dollars, missing analyst expectations of 4.14 dollars. The efficiency ratio came in at 60 percent, also missing analyst expectations. Additionally, a bearish report published by Citrini Research outlined potential risks to credit card companies in a hypothetical AI-driven scenario, which contributed to declines across the financial services sector on Monday.
Read full analysisCapital One Financial Corporation stock declined 8.8 percent on Monday. The company reported fourth quarter 2025 net income of 2.1 billion dollars, or 3.26 dollars per diluted common share, compared with 3.2 billion dollars in the third quarter of 2025. On January 22, 2026, Capital One announced a definitive agreement to acquire Brex Inc. for 5.15 billion dollars. The company also announced plans to acquire Discover Financial Services. Capital One reported earnings per share of 3.86 dollars, missing analyst expectations of 4.14 dollars. The efficiency ratio came in at 60 percent, also missing analyst expectations. Additionally, a bearish report published by Citrini Research outlined potential risks to credit card companies in a hypothetical AI-driven scenario, which contributed to declines across the financial services sector on Monday.
Capital One is the largest U.S. credit card issuer by receivables following its $35.3 billion acquisition of Discover Financial in 2025, which gave it control of a proprietary payments network alongside its consumer banking and lending operations. The company is navigating heavy integration costs from the Discover deal and a proposed $5.15 billion Brex acquisition while facing regulatory risk from Trump's proposed 10% credit card rate cap. Its pure-play credit card exposure makes it particularly sensitive to consumer finance and macro disruption fears like those driving Monday's selloff.