Zacks Research Has Positive Outlook for DFS Q2 Earnings

Discover Financial Services (NYSE:DFS) – Zacks Research lifted their Q2 2025 earnings per share (EPS) 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 per share of $3.33 for the quarter, up from their previous estimate 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 quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, topping 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%.

A number of other research analysts also recently weighed in on the stock. StockNews.com downgraded shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Friday, January 24th. JPMorgan Chase & Co. increased their price target on Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a report on Friday, January 24th. Evercore ISI lifted their price objective on Discover Financial Services from $156.00 to $163.00 and gave the stock an “in-line” rating in a report on Wednesday, October 30th. Wells Fargo & Company upped their price objective on 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. Finally, Truist Financial raised their target price on Discover Financial Services from $233.00 to $262.00 and gave the stock a “buy” rating in a research report on Monday, January 27th. Ten investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $186.46.

Discover Financial Services Stock Performance

Shares of NYSE DFS opened at $194.95 on Monday. The firm’s 50-day moving average price is $183.54 and its 200-day moving average price is $159.60. Discover Financial Services has a 52-week low of $107.10 and a 52-week high of $205.76. The company has a market cap of $48.99 billion, a PE ratio of 12.21, a PEG ratio of 0.63 and a beta of 1.46. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09.

Institutional Trading of Discover Financial Services

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in Discover Financial Services by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 31,045,208 shares of the financial services provider’s stock worth $5,377,961,000 after buying an additional 290,937 shares during the period. State Street Corp lifted its position in shares of Discover Financial Services by 0.8% in the third quarter. State Street Corp now owns 10,498,044 shares of the financial services provider’s stock valued at $1,472,771,000 after acquiring an additional 80,601 shares in the last quarter. FMR LLC boosted its stake in shares of Discover Financial Services by 8.0% in the third quarter. FMR LLC now owns 7,493,862 shares of the financial services provider’s stock worth $1,051,314,000 after acquiring an additional 558,227 shares during the period. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new stake in shares of Discover Financial Services during the fourth quarter worth about $351,766,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Discover Financial Services by 0.7% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,834,705 shares of the financial services provider’s stock worth $257,391,000 after purchasing an additional 12,255 shares in the last quarter. 86.94% of the stock is currently owned by institutional investors.

Discover Financial Services Announces Dividend

The company 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 $0.70 dividend. The ex-dividend date is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.44%. Discover Financial Services’s payout ratio is currently 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.