Zacks Research Analysts Reduce Earnings Estimates for DFS

Discover Financial Services (NYSE:DFS) – Investment analysts at Zacks Research lowered their Q2 2026 earnings per share (EPS) estimates for Discover Financial Services in a note issued to investors on Wednesday, April 9th. Zacks Research analyst D. Chatterjee now expects that the financial services provider will post earnings per share of $3.40 for the quarter, down from their prior estimate of $3.42. 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’ Q3 2026 earnings at $3.70 EPS.

Discover Financial Services (NYSE:DFS) last issued its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 analysts also recently weighed in on the company. Royal Bank of Canada increased their price objective on Discover Financial Services from $193.00 to $210.00 and gave the company a “sector perform” rating in a report on Friday, January 24th. JPMorgan Chase & Co. decreased their price target on Discover Financial Services from $169.00 to $129.00 and set a “neutral” rating for the company in a research note on Tuesday, April 8th. StockNews.com lowered Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Wednesday, April 2nd. Truist Financial decreased their target price on shares of Discover Financial Services from $262.00 to $219.00 and set a “buy” rating for the company in a research report on Friday, March 21st. Finally, Wells Fargo & Company boosted their price target on shares of Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research report on Friday, January 24th. Seven investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $188.40.

Discover Financial Services Price Performance

DFS stock opened at $156.98 on Friday. The company has a market capitalization of $39.50 billion, a P/E ratio of 9.84, a PEG ratio of 1.51 and a beta of 1.20. The company has a fifty day moving average price of $175.40 and a 200-day moving average price of $171.86. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.03 and a current ratio of 1.09. Discover Financial Services has a 52-week low of $119.31 and a 52-week high of $205.76.

Discover Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be given a dividend of $0.70 per share. The ex-dividend date is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.78%. Discover Financial Services’s payout ratio is presently 17.54%.

Institutional Investors Weigh In On Discover Financial Services

Large investors have recently bought and sold shares of the stock. Orion Portfolio Solutions LLC grew its stake in shares of Discover Financial Services by 17.1% in the 3rd quarter. Orion Portfolio Solutions LLC now owns 10,080 shares of the financial services provider’s stock valued at $1,414,000 after buying an additional 1,469 shares during the period. M&T Bank Corp boosted its holdings in Discover Financial Services by 3.2% in the third quarter. M&T Bank Corp now owns 24,212 shares of the financial services provider’s stock worth $3,397,000 after acquiring an additional 760 shares in the last quarter. Coldstream Capital Management Inc. grew its stake in Discover Financial Services by 7.1% in the third quarter. Coldstream Capital Management Inc. now owns 6,041 shares of the financial services provider’s stock valued at $860,000 after acquiring an additional 402 shares during the period. Toronto Dominion Bank increased its holdings in shares of Discover Financial Services by 1.4% during the third quarter. Toronto Dominion Bank now owns 126,013 shares of the financial services provider’s stock valued at $17,678,000 after acquiring an additional 1,778 shares in the last quarter. Finally, TD Private Client Wealth LLC raised its position in shares of Discover Financial Services by 28.1% during the third quarter. TD Private Client Wealth LLC now owns 27,232 shares of the financial services provider’s stock worth $3,820,000 after purchasing an additional 5,970 shares during the period. 86.94% of the stock is currently 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.