Keefe, Bruyette & Woods Estimates DFS Q3 Earnings

Discover Financial Services (NYSE:DFS) – Investment analysts at Keefe, Bruyette & Woods upped their Q3 2025 earnings estimates for Discover Financial Services in a report released on Monday, March 31st. Keefe, Bruyette & Woods analyst S. Sakhrani now forecasts that the financial services provider will post earnings of $3.42 per share for the quarter, up from their prior forecast of $3.31. Keefe, Bruyette & Woods currently has a “Outperform” rating and a $232.00 target price on the stock. The consensus estimate for Discover Financial Services’ current full-year earnings is $13.88 per share. Keefe, Bruyette & Woods also issued estimates for Discover Financial Services’ Q1 2026 earnings at $3.97 EPS and Q3 2026 earnings at $3.98 EPS.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 EPS 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%.

Several other analysts have also recently issued reports on the stock. Truist Financial lowered their price objective on shares of Discover Financial Services from $262.00 to $219.00 and set a “buy” rating for the company in a research note on Friday, March 21st. UBS Group upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and upped their price target for the stock from $150.00 to $239.00 in a research note on Monday, January 13th. Wells Fargo & Company lifted their price objective on Discover Financial Services from $185.00 to $214.00 and gave the company an “equal weight” rating in a research note on Friday, January 24th. Royal Bank of Canada boosted their target price on Discover Financial Services from $193.00 to $210.00 and gave the stock a “sector perform” rating in a report on Friday, January 24th. Finally, JPMorgan Chase & Co. raised their price target on shares of Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a report on Friday, January 24th. Seven research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $192.40.

Discover Financial Services Price Performance

Discover Financial Services stock opened at $175.81 on Thursday. Discover Financial Services has a 1 year low of $119.31 and a 1 year high of $205.76. 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 50 day moving average price of $183.24 and a 200 day moving average price of $170.92. The company has a market cap of $44.23 billion, a price-to-earnings ratio of 11.02, a PEG ratio of 1.51 and a beta of 1.45.

Hedge Funds Weigh In On Discover Financial Services

A number of institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Discover Financial Services during the fourth quarter worth about $724,720,000. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors acquired a new position in shares of Discover Financial Services in the 4th quarter valued at approximately $351,766,000. Invesco Ltd. boosted its stake in shares of Discover Financial Services by 38.5% during the 4th quarter. Invesco Ltd. now owns 2,974,471 shares of the financial services provider’s stock valued at $515,268,000 after buying an additional 826,287 shares during the last quarter. Third Point LLC acquired a new stake in shares of Discover Financial Services during the fourth quarter worth approximately $110,867,000. Finally, Empyrean Capital Partners LP bought a new stake in shares of Discover Financial Services in the fourth quarter worth $100,993,000. Institutional investors and hedge funds own 86.94% of the company’s stock.

Discover Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.59%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s payout ratio is 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.