Zacks Research Issues Optimistic Forecast for DFS Earnings

Discover Financial Services (NYSE:DFS) – Analysts at Zacks Research raised their Q2 2025 earnings per share estimates for shares of Discover Financial Services in a report issued on Wednesday, February 5th. Zacks Research analyst D. Chatterjee now expects that the financial services provider will post earnings of $3.33 per share for the quarter, up from their prior 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) last released its 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 return on equity of 26.18% and a net margin of 17.29%.

Other equities research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. increased their target price 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. Truist Financial boosted their price target on Discover Financial Services from $233.00 to $262.00 and gave the company a “buy” rating in a research note on Monday, January 27th. Barclays lifted their price objective on shares of Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research note on Friday, January 24th. Keefe, Bruyette & Woods boosted their price objective on Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a report on Monday, December 9th. Finally, UBS Group raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $150.00 to $239.00 in a research note on Monday, January 13th. Ten investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $186.46.

Discover Financial Services Stock Down 2.3 %

Shares of Discover Financial Services stock opened at $195.27 on Monday. The stock has a market cap of $49.07 billion, a price-to-earnings ratio of 12.23, a PEG ratio of 0.63 and a beta of 1.46. The firm’s 50-day moving average is $183.23 and its two-hundred day moving average is $159.22. 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 1 year low of $107.10 and a 1 year high of $205.76.

Discover Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Friday, May 23rd will be paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 1.43%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s dividend payout ratio (DPR) is presently 17.54%.

Institutional Investors Weigh In On Discover Financial Services

Several hedge funds have recently modified their holdings of the company. DiNuzzo Private Wealth Inc. grew its stake in shares of Discover Financial Services by 506.5% during the 3rd quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock valued at $26,000 after buying an additional 157 shares during the period. Point72 Asia Singapore Pte. Ltd. acquired a new stake in Discover Financial Services during the 3rd quarter valued at approximately $30,000. SBI Securities Co. Ltd. purchased a new stake in Discover Financial Services during the 4th quarter worth approximately $33,000. Flagship Wealth Advisors LLC acquired a new position in shares of Discover Financial Services in the 4th quarter valued at approximately $34,000. Finally, Grove Bank & Trust boosted its stake in shares of Discover Financial Services by 78.1% during the 4th quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock valued at $35,000 after buying an additional 89 shares during the last quarter. 86.94% of the stock is owned by institutional investors and hedge funds.

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.