Equities Analysts Set Expectations for DFS Q2 Earnings

Discover Financial Services (NYSE:DFS - Free Report) - Equities research analysts at Zacks Research lifted their Q2 2025 earnings per share (EPS) estimates for Discover Financial Services in a note issued to investors on Wednesday, February 5th. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will post earnings of $3.33 per share for the quarter, up from their previous forecast of $2.99. The consensus estimate for Discover Financial Services' current full-year earnings is $13.57 per share. Zacks Research also issued estimates for Discover Financial Services' Q3 2025 earnings at $3.31 EPS, Q4 2025 earnings at $3.15 EPS, FY2025 earnings at $13.03 EPS, Q1 2026 earnings at $3.49 EPS, Q2 2026 earnings at $3.54 EPS, Q3 2026 earnings at $3.72 EPS and Q4 2026 earnings at $4.25 EPS.

Discover Financial Services (NYSE:DFS - Get Free Report) last released its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 EPS 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%.

Several other research firms have also commented on DFS. Barclays upped their price objective on Discover Financial Services from $186.00 to $209.00 and gave the stock an "overweight" rating in a research note on Friday, January 24th. Royal Bank of Canada raised their price objective on Discover Financial Services from $193.00 to $210.00 and gave the stock a "sector perform" rating in a research note on Friday, January 24th. StockNews.com downgraded Discover Financial Services from a "buy" rating to a "hold" rating in a research note on Friday, January 24th. Keefe, Bruyette & Woods upped their target price on shares of Discover Financial Services from $170.00 to $232.00 and gave the stock an "outperform" rating in a report on Monday, December 9th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Discover Financial Services from $146.00 to $169.00 and gave the company a "neutral" rating in a research report on Friday, January 24th. Ten equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $186.46.

Discover Financial Services Stock Performance

DFS traded up $1.56 during trading on Monday, hitting $190.28. The company's stock had a trading volume of 2,112,860 shares, compared to its average volume of 1,560,240. The business's 50 day simple moving average is $184.11 and its 200-day simple moving average is $160.17. The firm has a market cap of $47.82 billion, a PE ratio of 11.92, a P/E/G ratio of 0.63 and a beta of 1.46. Discover Financial Services has a one year low of $108.24 and a one year high of $205.76. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09.

Hedge Funds Weigh In On Discover Financial Services

A number of institutional investors have recently modified their holdings of the stock. Marshall Wace LLP grew its position in shares of Discover Financial Services by 21.2% during the 4th quarter. Marshall Wace LLP now owns 289,264 shares of the financial services provider's stock worth $50,109,000 after buying an additional 50,666 shares in the last quarter. NewEdge Advisors LLC lifted its stake in shares of Discover Financial Services by 27.8% during the 4th quarter. NewEdge Advisors LLC now owns 12,546 shares of the financial services provider's stock worth $2,173,000 after purchasing an additional 2,726 shares during the last quarter. Stenger Family Office LLC bought a new stake in Discover Financial Services during the fourth quarter valued at about $1,298,000. United Capital Financial Advisors LLC grew its stake in Discover Financial Services by 1.6% in the fourth quarter. United Capital Financial Advisors LLC now owns 14,256 shares of the financial services provider's stock valued at $2,470,000 after purchasing an additional 228 shares during the last quarter. Finally, GABELLI & Co INVESTMENT ADVISERS INC. grew its stake in Discover Financial Services by 182.3% in the fourth quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 36,555 shares of the financial services provider's stock valued at $6,332,000 after purchasing an additional 23,605 shares during the last quarter. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Friday, May 23rd will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.80 annualized dividend and a dividend yield of 1.47%. Discover Financial Services's dividend payout ratio (DPR) is 17.54%.

Discover Financial Services Company Profile

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.