JP Morgan Chase & Co.
JPM · NYSE
Next quarter
Expected to report Jan 12, 2027 — estimated from last year’s reporting date.
Consensus is $5.96 EPS for Dec 2026 across 6 estimates, ranging $5.66 to $6.40.
JPM Sep 2026
- 3.20%
- $5.94
- $5.75
- —
- —
Reported results
- $15.30B
- $5.57
Highlights
- Earnings and expectations: JPMorgan reported third-quarter net income of $15.3B and diluted EPS of $5.57. The $658M securities loss reduced EPS by $0.18; excluding it, EPS was $5.75, 3.2% below the $5.94 consensus.
- Revenue growth: Managed revenue was $50.9B, up 8% year over year but down $7.1B sequentially. Net interest income rose 13% year over year to $27.1B and noninterest revenue rose 3% to $23.8B.
- Markets and business mix: Markets revenue increased 15% year over year to $10.3B, led by Equity Markets, up 49% to $5.0B; Fixed Income Markets fell 4% to $5.4B.
- Costs and credit: Expense rose 12% year over year to $27.3B. Credit costs were $2.7B, including $2.2B of net charge-offs and a $539M reserve build.
- Business results: CIB net income grew 20% year over year to $8.2B, CCB grew 13% to $5.7B, and AWM grew 11% to $1.8B.
- Balance-sheet growth: Average loans were $1.6T, up 10% year over year, and average deposits were $2.7T, up 8%.
- Capital and returns: ROTCE was 20% (21% excluding the securities loss); the standardized CET1 ratio was 13.9%, down from 14.8% a year earlier. JPMorgan paid a $1.65-per-share dividend and repurchased $664M of stock.
- Outlook: JPMorgan projected roughly $25.5B of fourth-quarter NII excluding Markets and $27.5B of adjusted expense; its implied full-year figures were about $97.2B and $108.6B, respectively.
Analysis
JPMorgan’s third quarter combined solid year-over-year operating growth with a sharp sequential pullback and a securities-loss hit. Net income was $15.3B, up 6% from $14.39B a year earlier but down $5.9B from the unusually strong $21.16B in Q2. The company reported diluted EPS of $5.57; its $658M net investment securities loss reduced EPS by $0.18, leaving $5.75 excluding the item. Against the $5.94 consensus, reported EPS was about 6% short, while the ex-item figure was 3.2% short. Managed revenue of $50.9B rose 8% year over year but fell $7.1B sequentially, while expense increased 12% year over year to $27.3B and credit costs reached $2.7B.
The defining strength was breadth in underlying revenue: NII excluding Markets rose 6% year over year to $24.7B, while Markets revenue gained 15%, largely on a 49% increase in Equity Markets. CIB, CCB and AWM all delivered year-over-year net income growth. The counterweights were higher compensation and other expenses, a $539M reserve build, and the Corporate securities loss. Average loans and deposits grew 10% and 8%, respectively. JPMorgan ended with a 13.9% standardized CET1 ratio and guided to about $25.5B of Q4 NII excluding Markets and $27.5B of adjusted expense.
Revenue and earnings
Managed revenue increased 8% year over year to $50.9B, but declined $7.1B from Q2. NII was $27.1B, up 13% year over year; noninterest revenue was $23.8B, up 3%. Excluding Markets, NII rose 6% to $24.7B, supported by higher deposit, card and wholesale-loan balances, partly offset by lower rates. Noninterest revenue excluding Markets rose 7% to $15.9B, or 12% excluding the securities loss.
- Reported result: Net income was $15.3B and diluted EPS $5.57, versus $14.39B and $5.07 in Q3 2025. Sequentially, net income fell from $21.16B and EPS from $7.70 in Q2.
- Securities loss: Corporate recorded $658M of net investment securities losses. Excluding the item, JPMorgan reported net income of $15.8B, EPS of $5.75 and ROTCE of 21%, versus reported ROTCE of 20%.
- Cost pressure: Expense rose 12% year over year to $27.3B, reflecting higher compensation, including revenue-linked pay and front-office hiring, as well as brokerage, distribution, marketing and technology costs. The managed overhead ratio was 54%, versus 52% a year earlier.
Markets and CIB
CIB produced $8.2B of net income, up 20% year over year, on revenue of $22.7B, up 14%. The standout was Equity Markets; the contrast between that strength and softer Fixed Income revenue shaped the quarter’s Markets result.
- Equity Markets: Revenue increased 49% to $5.0B, with strength across products, particularly Prime and Derivatives.
- Fixed Income Markets: Revenue declined 4% to $5.4B, as lower Commodities, Rates, Credit and Public Finance revenue was largely offset by Currencies & Emerging Markets.
- Banking and payments: Investment Banking revenue rose 15% to $3.1B, largely on higher advisory fees; Payments gained 14% to $5.6B, supported by deposit balances, margin and fees. Securities Services revenue grew 14% to $1.6B.
Consumer and wealth
CCB net income rose 13% year over year to $5.7B on revenue up 9% to $21.2B. Higher Card Services balances and net yield, asset-management fees, deposits and auto lease income supported revenue. Credit costs were $2.0B, including $2.0B of net charge-offs and a $50M reserve build. Card Services’ net charge-off rate was 2.91%, down from 3.15% a year earlier.
- Consumer activity: Average CCB loans grew 2% year over year to $594.3B and deposits grew 4% to $1.10T. Debit and credit card sales volume increased 10% to $539.5B.
- Asset and Wealth Management: Net income rose 11% to $1.8B and revenue rose 14% to $6.9B. AUM increased 13% to $5.2T and client assets 15% to $7.9T; quarterly long-term and liquidity net inflows were $51B and $42B.
Credit and balance sheet
Firmwide credit costs were $2.7B, down from $3.4B a year earlier but up from $2.5B in Q2. Net charge-offs declined $389M year over year to $2.2B, while the firm recorded a $539M net reserve build. Average loans rose 10% year over year to $1.6T and average deposits rose 8% to $2.7T.
- Capital: CET1 capital was $304B. The standardized CET1 ratio was 13.9%, versus 14.8% a year earlier and 14.2% in Q2; the advanced ratio was 14.1%.
- Liquidity: Total excess HQLA was $288B, compared with $241B a year earlier. Firm LCR was 113%, versus 110% in both comparison periods.
- Shareholder distributions: The common dividend was $1.65 per share, or $4.4B in total, and net stock repurchases were $664M. The trailing-12-month net payout ratio was 61%.
2026 outlook
JPMorgan’s outlook pointed to continued strong NII, alongside a high expense run rate. For Q4, it estimated NII excluding Markets of about $25.5B and total NII of about $28B; the implied FY2026 figures were approximately $97.2B and $106.2B, respectively. Adjusted expense was projected at about $27.5B for Q4 and $108.6B for FY2026. The company also indicated a 2026 Card Services net charge-off rate of about 3.2%.
- 2027 central case: Preliminary analysis put NII excluding Markets at approximately $107B, with growth attributed to balance-sheet expansion and higher rates.
