Credit card issuer Capital One (COF) has reported mixed financial results for the fourth quarter of 2025, and announced that it is paying $5.15 billion to acquire startup company Brex.
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McLean, Virginia-based Capital One Financial Corp. announced earnings per share (EPS) of $3.86, which fell short of the $4.12 expected on Wall Street. Revenue in the quarter totaled $15.58 billion, which exceeded the $15.37 billion consensus forecast of analysts.
For its entire fiscal year, Capital One reported a profit of $2.45 billion, or $4.03 per share. Revenue was reported as $53.43 billion. However, the latest print from the credit card issuer was overshadowed by news that it is embarking on a new acquisition. Capital One recently completed its $35.30 billion all-stock purchase of former rival Discover Financial Services.
Capital One’s Brex Acquisition
Capital One said that it is acquiring startup Brex for $5.15 billion, the latest deal undertaken by the credit card giant’s CEO Richard Fairbank. Capital One said it will pay 50% cash and 50% stock for Brex, which is an artificial intelligence-powered financial technology platform that provides corporate credit cards, expense management, and business accounts for other startup companies.
“Since our founding, we set out to build a payments company at the frontier of the technology revolution,” said Fairbanks in the earnings release. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.”
Is COF Stock a Buy?
Capital One stock has a consensus Strong Buy rating among 18 Wall Street analysts. That rating is based on 16 Buy and two Hold recommendations issued in the last three months. The average COF price target of $285.33 implies 21.38% upside from current levels. These ratings could change after the company’s financial results.
