Zacks Research Issues Pessimistic Outlook for DFS Earnings

Discover Financial Services (NYSE:DFS) – Analysts at Zacks Research dropped their Q2 2026 earnings per share estimates for shares of Discover Financial Services in a research note issued to investors on Tuesday, March 11th. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will earn $3.42 per share for the quarter, down from their prior estimate of $3.54. 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’ Q4 2026 earnings at $4.30 EPS.

Discover Financial Services (NYSE:DFS) last issued 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 reports about the company. Wells Fargo & Company increased their target price on Discover Financial Services from $185.00 to $214.00 and gave the company an “equal weight” rating in a report on Friday, January 24th. UBS Group upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and increased their target price for the company from $150.00 to $239.00 in a report on Monday, January 13th. StockNews.com cut Discover Financial Services from a “buy” rating to a “hold” rating in a report on Friday, January 24th. JPMorgan Chase & Co. increased their price objective on Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a report on Friday, January 24th. Finally, Keefe, Bruyette & Woods increased their price objective on Discover Financial Services from $170.00 to $232.00 and gave the stock an “outperform” rating in a report on Monday, December 9th. Nine equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $191.91.

Discover Financial Services Trading Up 3.4 %

Shares of DFS stock opened at $164.67 on Friday. The stock has a market capitalization of $41.43 billion, a PE ratio of 10.32, a P/E/G ratio of 1.51 and a beta of 1.45. Discover Financial Services has a 1-year low of $119.31 and a 1-year high of $205.76. The business has a 50-day moving average of $187.69 and a 200 day moving average of $167.82. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.03.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in DFS. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of Discover Financial Services in the 3rd quarter worth approximately $30,000. SBI Securities Co. Ltd. bought a new position in Discover Financial Services during the 4th quarter valued at approximately $33,000. Flagship Wealth Advisors LLC bought a new position in Discover Financial Services during the 4th quarter valued at approximately $34,000. Mattson Financial Services LLC bought a new position in Discover Financial Services during the 4th quarter valued at approximately $34,000. Finally, Grove Bank & Trust increased its position in 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 in the last quarter. Institutional investors own 86.94% of the company’s stock.

Discover Financial Services Announces Dividend

The company 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 $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.70%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services’s dividend payout ratio is currently 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.