Zacks Research Issues Negative Forecast for DFS Earnings

Discover Financial Services (NYSE:DFS) – Investment analysts at Zacks Research dropped their Q2 2026 earnings per share estimates for 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 previous forecast 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 posted its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share for the quarter, topping 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%.

A number of other brokerages have also recently commented on DFS. Keefe, Bruyette & Woods boosted their price target on Discover Financial Services from $170.00 to $232.00 and gave the stock an “outperform” rating in a research report on Monday, December 9th. JPMorgan Chase & Co. upped their price target on Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a research report on Friday, January 24th. Royal Bank of Canada upped 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. Wells Fargo & Company upped their price objective on Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a report on Friday, January 24th. Finally, UBS Group upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and raised their price target for the stock from $150.00 to $239.00 in a research report on Monday, January 13th. Nine research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $191.91.

Discover Financial Services Price Performance

Shares of DFS stock opened at $158.89 on Friday. 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 firm has a market cap of $39.98 billion, a P/E ratio of 9.96, a P/E/G ratio of 1.51 and a beta of 1.45. The business’s 50 day moving average price is $187.91 and its 200-day moving average price is $167.60. Discover Financial Services has a fifty-two week low of $119.31 and a fifty-two week high of $205.76.

Institutional Investors Weigh In On Discover Financial Services

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Point72 Asia Singapore Pte. Ltd. acquired a new stake in shares of Discover Financial Services during the third quarter valued at about $30,000. SBI Securities Co. Ltd. acquired a new position in Discover Financial Services during the fourth quarter worth $33,000. Flagship Wealth Advisors LLC purchased a new position in shares of Discover Financial Services during the fourth quarter worth $34,000. Mattson Financial Services LLC purchased a new stake in shares of Discover Financial Services in the 4th quarter valued at $34,000. Finally, Grove Bank & Trust lifted its stake 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 worth $35,000 after acquiring an additional 89 shares in the last quarter. Hedge funds and other institutional investors own 86.94% of the company’s stock.

Discover Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.76%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s dividend payout ratio is presently 17.54%.

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.