President Trump’s call for a 10% cap on credit card interest rates could materially affect Capital One’s business model. CEO Richard Fairbank warned that such a cap would force credit card issuers to reduce customer credit limits and impose stricter account restrictions. He cautioned that a contraction in available consumer credit could sharply curtail consumer spending and risk triggering an economic slowdown. Bank executives broadly oppose the measure, arguing that it would undermine profitability and limit access to credit for millions of cardholders who rely on flexible borrowing options.

For the quarter ended December 31, 2025, Capital One reported adjusted earnings per share of $3.86, missing the consensus estimate of $4.17. Total revenue reached $15.6 billion, slightly above forecasts of $15.47 billion and up from the prior-year period. Provision for credit losses increased by $1.4 billion to $4.1 billion, reflecting $3.8 billion in net charge-offs and a $302 million build in loan reserves. Period-end loans held for investment rose 2% to $453.6 billion, including a 3% increase in credit card loans to $279.6 billion. Deposits grew 1% to $475.8 billion, while net interest margin declined by 10 basis points to 8.26%.

Capital One entered into a definitive agreement to acquire fintech firm Brex for $5.15 billion, structured as approximately half cash and half stock. The deal aims to expand the company’s footprint in corporate credit and business payments, diversifying revenue streams beyond consumer lending. Management expects the transaction to close in mid-2026 and to accelerate growth in the small- and medium-enterprise segment, leveraging Brex’s technology platform to cross-sell Capital One’s broader suite of banking products.

Despite the earnings miss and regulatory uncertainty, Wall Street remains broadly bullish. Of 15 analysts tracked by Visible Alpha, 11 maintain buy ratings, with mean price targets implying nearly 20% upside over the next 12 months. CNBC’s Jim Cramer singled out Capital One as a top pick, projecting potential share levels that would represent more than an 80% return from current levels. Analysts point to the company’s strong capital ratios, scale of deposit funding and growing business payments presence as key drivers of long-term value.