Equities Analysts Offer Predictions for DFS Q3 Earnings

Discover Financial Services (NYSE:DFS - Free Report) - Analysts at Keefe, Bruyette & Woods lifted their Q3 2025 earnings estimates for Discover Financial Services in a research report issued to clients and investors on Monday, March 31st. Keefe, Bruyette & Woods analyst S. Sakhrani now expects that the financial services provider will earn $3.42 per share for the quarter, up from their previous estimate of $3.31. Keefe, Bruyette & Woods has a "Outperform" rating and a $232.00 price objective on the stock. The consensus estimate for Discover Financial Services' current full-year earnings is $13.88 per share. Keefe, Bruyette & Woods also issued estimates for Discover Financial Services' Q1 2026 earnings at $3.97 EPS and Q3 2026 earnings at $3.98 EPS.

A number of other equities research analysts have also commented on the company. StockNews.com lowered Discover Financial Services from a "buy" rating to a "hold" rating in a research report on Wednesday, April 2nd. Royal Bank of Canada increased their target price on shares of Discover Financial Services from $193.00 to $210.00 and gave the company a "sector perform" rating in a report on Friday, January 24th. Truist Financial dropped their price target on shares of Discover Financial Services from $262.00 to $219.00 and set a "buy" rating on the stock in a research report on Friday, March 21st. JPMorgan Chase & Co. reduced their price objective on shares of Discover Financial Services from $169.00 to $129.00 and set a "neutral" rating for the company in a research report on Tuesday. Finally, Barclays lifted their target price on shares of Discover Financial Services from $186.00 to $209.00 and gave the stock an "overweight" rating in a research report on Friday, January 24th. Seven equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $188.40.

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Discover Financial Services Stock Up 1.2 %

Shares of Discover Financial Services stock traded up $1.80 on Thursday, hitting $152.68. The company had a trading volume of 973,167 shares, compared to its average volume of 2,107,640. Discover Financial Services has a 1 year low of $119.31 and a 1 year high of $205.76. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.03 and a current ratio of 1.09. The stock has a 50 day moving average of $180.36 and a 200-day moving average of $171.47. The stock has a market capitalization of $38.42 billion, a price-to-earnings ratio of 9.56, a P/E/G ratio of 1.51 and a beta of 1.20.

Discover Financial Services (NYSE:DFS - Get Free Report) last announced its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share for the quarter, beating the consensus estimate of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%.

Discover Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be paid a $0.70 dividend. The ex-dividend date is Friday, May 23rd. This represents a $2.80 annualized dividend and a yield of 1.83%. Discover Financial Services's payout ratio is 17.54%.

Hedge Funds Weigh In On Discover Financial Services

Several institutional investors and hedge funds have recently bought and sold shares of DFS. Townsquare Capital LLC grew its stake in shares of Discover Financial Services by 4.5% during the 3rd quarter. Townsquare Capital LLC now owns 4,769 shares of the financial services provider's stock worth $669,000 after acquiring an additional 204 shares during the period. Point72 Asia Singapore Pte. Ltd. purchased a new stake in Discover Financial Services during the third quarter valued at about $30,000. Atom Investors LP lifted its holdings in Discover Financial Services by 69.5% during the third quarter. Atom Investors LP now owns 3,489 shares of the financial services provider's stock valued at $489,000 after purchasing an additional 1,430 shares during the last quarter. Benjamin Edwards Inc. boosted its position in Discover Financial Services by 465.3% during the third quarter. Benjamin Edwards Inc. now owns 10,249 shares of the financial services provider's stock worth $1,438,000 after purchasing an additional 8,436 shares during the period. Finally, Janus Henderson Group PLC increased its stake in shares of Discover Financial Services by 3.4% in the third quarter. Janus Henderson Group PLC now owns 36,738 shares of the financial services provider's stock worth $5,155,000 after purchasing an additional 1,200 shares in the last quarter. 86.94% of the stock is owned by institutional investors.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.