Capital One Financial: Pre-2Q26 Catchup and Model Update

Research evidence excerpt

Capital One Financial: Pre-2Q26 Catchup and Model Update

Deutsche Bank

Research

Rating Company Date

Hold Capital One Financial 9 July 2026

North America Reuters Bloomberg Rating Hold

United States COF.N COF US Price target (USD) 250.00 Price at 8 Jul 26 191.95

52-week range 257.94 – 25.45

Financial

Consumer Finance Valuation & Risks

Pre-2Q26 Catchup and Model Update

Mark DeVries

We caught up with Capital One ahead of 2Q26 earnings to discuss any recent Research Analyst

+1-212-250-4081 trends in their business intra-quarter. Below are our takeaways and estimate

updates into the quarter. Michael Dunlevy, CFA

Research Associate

+1-212-250-9888

Technology transformation and operating benefits

• Capital One described a multi-year technology transformation (begun in

2013) that included major tech-talent hiring, completing a 100% cloud

migration by 2020, modernizing its data ecosystem and enterprise

platforms, and investing significantly in AI.

• Management attributed economic benefits to the transformation,

including savings from cloud migration, lower operating costs in the retail

bank and card servicing, a reduced “run the engine” tech-cost burden,

and lower fraud costs per account.

Discover integration and synergy outlook

• Capital One said the Discover integration was tracking consistent with

initial expectations, and it reiterated a total revenue-and-cost synergy

estimate of $2.5 billion.

• Management said revenue synergies were largely achieved via 100%

conversion of the debit portfolio to the Discover network, while most cost

synergies were expected in 2027 and tied to technology conversions.

• Capital One said its modern tech stack should enable a “seamless”

integration experience (e.g., no card reissuance or new login credentials),