Zacks Research Issues Pessimistic Estimate for DFS Earnings

Discover Financial Services (NYSE:DFS - Free Report) - Equities researchers at Zacks Research cut their Q2 2026 earnings per share estimates for shares of Discover Financial Services in a report issued on Wednesday, April 9th. Zacks Research analyst D. Chatterjee now expects that the financial services provider will earn $3.40 per share for the quarter, down from their prior estimate of $3.42. The consensus estimate for Discover Financial Services' current full-year earnings is $13.88 per share. Zacks Research also issued estimates for Discover Financial Services' Q3 2026 earnings at $3.70 EPS.

Discover Financial Services (NYSE:DFS - Get Free Report) last released its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, beating analysts' consensus estimates 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 issued reports on DFS. Barclays lifted their price objective on Discover Financial Services from $186.00 to $209.00 and gave the company an "overweight" rating in a research note on Friday, January 24th. Royal Bank of Canada lifted 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 research report on Friday, January 24th. Wells Fargo & Company raised their price objective on shares of Discover Financial Services from $185.00 to $214.00 and gave the company an "equal weight" rating in a research report on Friday, January 24th. StockNews.com lowered shares of Discover Financial Services from a "buy" rating to a "hold" rating in a research report on Tuesday. Finally, UBS Group raised Discover Financial Services from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $150.00 to $239.00 in a research note on Monday, January 13th. Seven investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $188.40.

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Discover Financial Services Price Performance

NYSE:DFS traded up $0.96 during trading hours on Friday, hitting $160.03. The stock had a trading volume of 938,600 shares, compared to its average volume of 1,577,046. The company has a 50 day simple moving average of $174.55 and a two-hundred day simple moving average of $172.23. The firm has a market capitalization of $40.27 billion, a price-to-earnings ratio of 10.03, a P/E/G ratio of 1.51 and a beta of 1.20. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.03. Discover Financial Services has a one year low of $119.31 and a one year high of $205.76.

Discover Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.75%. The ex-dividend date is Friday, May 23rd. Discover Financial Services's payout ratio is 17.54%.

Institutional Investors Weigh In On Discover Financial Services

A number of large investors have recently made changes to their positions in the business. Simon Quick Advisors LLC boosted its holdings in Discover Financial Services by 5.1% in the first quarter. Simon Quick Advisors LLC now owns 7,776 shares of the financial services provider's stock valued at $1,327,000 after acquiring an additional 376 shares in the last quarter. USA Financial Formulas purchased a new position in shares of Discover Financial Services during the first quarter valued at about $715,000. CX Institutional raised its stake in Discover Financial Services by 5.8% in the first quarter. CX Institutional now owns 2,186 shares of the financial services provider's stock worth $373,000 after buying an additional 120 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in Discover Financial Services by 7.2% during the 1st quarter. Assenagon Asset Management S.A. now owns 23,995 shares of the financial services provider's stock valued at $4,096,000 after acquiring an additional 1,602 shares in the last quarter. Finally, SG Americas Securities LLC boosted its position in Discover Financial Services by 20.4% during the 1st quarter. SG Americas Securities LLC now owns 179,569 shares of the financial services provider's stock valued at $30,652,000 after acquiring an additional 30,444 shares in the last quarter. 86.94% of the stock is currently 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.