JPMorgan Chase (NYSE: JPM) reported third-quarter earnings below analyst forecasts before the US open today. The US bank posted diluted earnings of $5.57 a share, or $5.75 excluding a $658m pre-tax securities loss. Analysts had expected about $5.93 to $5.94, per AP and Zacks. AP called it a rare miss. Revenue of $50.17bn also trailed the Zacks consensus of $52.21bn. Even so, the shares were at $336.59 at 4:03pm UK time, up 0.7% on the previous close of $334.30, in a delayed quote.
What JPMorgan reported
Net income rose 6% to $15,305m and earnings per share rose 10%, so the quarter was a year-on-year improvement that still fell short of expectations. Excluding the loss, which was $498m after tax or 18 cents a share, net income was $15.8bn. Return on tangible common equity, a measure of profit against shareholders’ capital, was 20%, or 21% without the loss.
| Metric | Q3 2026 | Q3 2025 |
|---|---|---|
| Net income ($m) | 15,305 | 14,393 |
| Diluted EPS | $5.57 | $5.07 |
| Net revenue, reported ($m) | 50,172 | 46,427 |
| Net revenue, managed ($m) | 50,907 | 47,120 |
| CET1 capital ratio, standardized | 13.9% | 14.8% |
The CET1 ratio, a core measure of a bank’s loss-absorbing capital, was lower than a year ago, according to Zacks. Net interest income, the gap between what the bank earns on loans and pays on deposits, rose 13% to $27.1bn. Excluding Markets, its trading arm, it rose 6% to $24.7bn. Zacks said JPMorgan expects 2026 net interest income of about $106.2bn, up from $105.5bn, and about $107bn for 2027 excluding Markets.
Market reaction so far
JPMorgan opened at $339.97 and was at $336.59 at 4:03pm UK time, still 0.7% above the previous close, in a delayed quote. The shares’ resilience looks more linked to the higher net interest income outlook than to the miss, though the company has not said so. Yahoo Finance reported that chief financial officer Jeremy Barnum said IPOs are delayed, not cancelled.
Where the quarter fell short
Markets revenue rose 15% to $10.3bn, with equities up 49% to $5.0bn, while fixed income, which covers bond and currency trading, fell 4% to $5.4bn. Investment banking fees rose 14% to $3.0bn on the year but were 8% lower than the previous quarter. Chief executive Jamie Dimon said Markets revenue and investment banking fees each rose at a mid-teens rate, helped by strong client activity, although activity moderated somewhat during the quarter.
Costs and credit also weighed. Noninterest expense rose 12% to $27.3bn, and the provision for credit losses was $2,743m, including a net reserve build of $539m. The card net charge-off rate, the share of card balances written off as unrecoverable, was 2.91%.
Share buybacks were cut to $664m net, while the dividend stayed at $1.65 a share. Dimon said the reduction followed the bank’s order of priorities. He also tempered the trading strength with a warning about the wider backdrop:
However, large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface. These forces may be manageable, but we remain prepared for a wide range of outcomes.
Jamie Dimon, JPMorgan
Bank of America and Morgan Stanley are due to report tomorrow, 14 October.
