JP Morgan Chase & Co.
JPM · NYSE
Next quarter
Reports Oct 13, 2026, before the open.
Consensus is $5.84 EPS for Sep 2026 across 6 estimates, ranging $5.59 to $6.26.
JPM Jun 2026
- 9.84%
- +1.17%
- $5.59
- $6.14
- —
- —
Reported results
- $21.16B
- $7.70
Highlights
- Adjusted earnings beat: Excluding significant items, EPS was $6.14 versus consensus of $5.59, a 9.84% surprise; reported EPS was $7.70.
- Visa and investment gains lifted the quarter: Reported net income was $21.2 billion, including a $3.4 billion after-tax gain related to Visa shares and $776 million of after-tax gains on certain equity investments.
- Underlying profitability remained strong: Adjusted net income was $16.9 billion, up 13% year over year, with adjusted ROTCE of 23% versus 21% in 2Q25.
- Revenue accelerated: Managed revenue was $58.0 billion, up 27% year over year; excluding significant items, revenue increased 15%.
- Markets and banking drove growth: Markets revenue rose 35% year over year to $12.1 billion, including an 86% increase in Equity Markets, while Investment Banking revenue rose 45% to $3.9 billion.
- Consumer performance was mixed but profitable: CCB net income rose 3% to $5.3 billion as revenue increased 8% to $20.3 billion, but expenses rose 13% and credit costs reached $2.2 billion.
- Balance-sheet growth continued: Average loans increased 10% year over year and 2% sequentially to $1.5 trillion, while average deposits rose 7% year over year and 3% sequentially to $2.7 trillion.
- Capital returned while liquidity stayed substantial: JPMorgan repurchased $6.2 billion of common stock and paid a $4.0 billion common dividend; standardized CET1 was 14.1%, with $254 billion of excess HQLA.
Analysis
JPMorgan’s second quarter was a clear earnings beat, although the headline result was amplified by large investment-related gains. Adjusted EPS of $6.14 exceeded the $5.59 consensus by 9.84%, while reported net income of $21.2 billion and EPS of $7.70 compared with $15.0 billion and $5.24 a year earlier and $16.5 billion and $5.94 in the prior quarter. Excluding significant items, net income was $16.9 billion and EPS was $6.14, with adjusted ROTCE of 23%, up from 21% in 2Q25.
The core print was defined by broad-based revenue strength, particularly in the Commercial & Investment Bank. Managed revenue rose 27% year over year to $58.0 billion, led by a 35% increase in Markets revenue and a 45% increase in Investment Banking revenue. Net interest income excluding Markets increased 4% despite lower rates, supported by deposit, card-revolving and wholesale-loan growth. Credit remained manageable at $2.5 billion, with $2.4 billion of net charge-offs and a $149 million reserve build. Management expects 2026 net interest income of approximately $105.5 billion and adjusted expense of approximately $107.5 billion, with the latter outlook increased because stronger activity is driving higher volume- and revenue-related costs.
Revenue and earnings
JPMorgan produced $58.0 billion of managed revenue, up 27% year over year and 15% excluding significant items. Net interest income rose 10% to $25.6 billion, while noninterest revenue increased 45% to $32.4 billion. Excluding Markets, net interest income rose 4% to $23.7 billion and noninterest revenue rose 59% to $22.3 billion, reflecting balance growth, asset-management fees, investment banking and auto operating lease income.
- Reported versus underlying: Reported net income was $21.2 billion, up 41% year over year and 13% excluding significant items. The quarter included a $4.6 billion pretax gain related to Visa shares and $1.0 billion of pretax gains on certain equity investments, which increased reported EPS by $1.56.
- Profitability: Reported ROTCE was 29%, while ROTCE excluding significant items was 23%, compared with 21% in 2Q25 and 23% in 1Q26.
- Costs: Expense was $27.3 billion, up 15% year over year, driven by compensation, brokerage and distribution fees, marketing, technology and occupancy. The managed overhead ratio was 47%, versus 52% in 2Q25.
Commercial and Investment Bank
CIB was the quarter’s most important operating growth engine. Net income increased 46% year over year to $9.7 billion on revenue of $24.9 billion, up 27%, while ROE improved to 22% from 17% in 2Q25. Growth spanned both client banking and Markets, with higher client deposits, loan balances, fees and trading activity.
- Markets: Revenue rose 35% to $12.1 billion. Equity Markets increased 86% to $6.0 billion, while Fixed Income Markets rose 6% to $6.1 billion.
- Investment banking: Revenue rose 45% to $3.9 billion, with investment banking fees up 30% to $3.3 billion and particularly strong equity underwriting performance.
- Banking and payments: Revenue increased 21% to $11.2 billion, including Payments revenue of $5.3 billion, up 12%. Average Banking & Payments loans rose 13% year over year to $391.1 billion, and average client deposits rose 11% to $1.2 trillion.
- Credit: CIB recorded $356 million of credit costs, including $207 million of net charge-offs and a $149 million reserve build.
Consumer banking
Consumer & Community Banking generated $5.3 billion of net income, up 3% year over year, on revenue of $20.3 billion, up 8%. Card NII, higher revolving balances, auto operating lease income and asset-management fees supported revenue, but expense growth and card credit losses absorbed much of the benefit.
- Balances and engagement: Average CCB loans rose 2% year over year to $587.6 billion and average deposits rose 3% to $1.1 trillion. Active mobile customers increased 6% to 63.7 million, while debit and credit card sales volume rose 10% to $535.8 billion.
- Card and auto: Card Services average loans increased 7% to $243.5 billion, while the Card Services net charge-off rate was 3.34%, compared with 3.40% a year earlier. Card Services and Auto revenue increased 12% to $7.8 billion.
- Pressure points: Expense rose 13% to $11.1 billion, and credit costs increased to $2.2 billion, including $2.2 billion of net charge-offs, up $70 million year over year.
Asset and wealth management
Asset & Wealth Management delivered $2.0 billion of net income, up 33% year over year, on revenue of $6.9 billion, up 19%. Higher market levels, net inflows, investment valuation gains and stronger brokerage activity supported the result, producing a 48% ROE versus 36% in 2Q25.
- Assets and flows: Assets under management increased 18% year over year to $5.1 trillion, while client assets rose 19% to $7.7 trillion.
- Net inflows: Long-term net inflows were $50 billion and liquidity net inflows were $22 billion during the quarter.
- Balance growth: Average loans increased 18% to $284.3 billion and average deposits rose 5% to $260.1 billion.
Capital and outlook
JPMorgan continued to grow its balance sheet and return capital while maintaining a sizable liquidity buffer. Average firmwide loans rose 10% year over year to $1.5 trillion and deposits rose 7% to $2.7 trillion. Tangible book value per share increased to $113.35 from $108.87 in 1Q26 and $103.40 in 2Q25.
- Capital: CET1 capital was $303 billion, with standardized and advanced CET1 ratios of 14.1% and 14.2%, respectively. Standardized risk-weighted assets increased to $2.1 trillion.
- Liquidity: Firm liquidity coverage was 110%, bank liquidity coverage was 118%, and excess HQLA was $254 billion.
- Capital returns: JPMorgan paid a $1.50-per-share common dividend totaling $4.0 billion and repurchased $6.2 billion of common stock. The last-twelve-month net payout ratio was 73%.
- 2026 outlook: Management expects net interest income of approximately $105.5 billion, or $96.5 billion excluding Markets, and adjusted expense of approximately $107.5 billion. The expense outlook increased relative to the prior outlook because stronger activity is generating higher volume- and revenue-related costs.
