Capital One Financial reported fourth-quarter earnings that fell short of analyst estimates, sending shares down 4.2%. The bank posted adjusted EPS of $3.86 versus a consensus of $4.17, though revenue of $15.6 billion edged past expectations. Provision for credit losses rose to $4.1 billion, driven by $3.8 billion in net charge-offs.

In a major strategic move, Capital One announced a $5.15 billion acquisition of Brex Inc., a fintech specializing in corporate credit cards. The deal is structured as 50% cash and 50% stock. This acquisition aims to bolster Capital One's commercial offerings and compete with rivals in the fast-growing business payments space.

CEO Richard Fairbank cited years of investment for the results, but the earnings miss and rising credit costs raised investor concerns. The bank's full-year 2025 revenue jumped 37% to $53.4 billion, but non-interest expenses surged 42% to $30.5 billion. The Brex deal could accelerate growth but adds integration risk.