For the third quarter ending September 30, JPMorgan posted earnings of $5.57 per share, underperforming the $5.85 per share forecast by analysts and marking its first profit miss in nearly three years, according to LSEG data. Net revenue for the period climbed 8% year-over-year to $50.2 billion, but certain segments lagged after a strong showing earlier in the year.
Investment banking fees saw an 8% contraction from the previous quarter, although they increased 14% compared to the same period in 2025. Some pointed to heightened interest rate uncertainty, rising energy costs, and global tensions as factors curbing deal activity. The IPO market, which had started the year strongly with major listings, cooled significantly as the quarter progressed.
JPMorgan’s trading and investment banking revenues landed at the low end of internal targets. The markets division delivered a 15% annual increase in revenue, propelled by a 49% surge in equities trading as investors repositioned portfolios amid volatility. Fixed income trading, however, registered a 4% decrease from the previous year.
Net interest income excluding markets operations rose 6% to $24.7 billion, while average loans expanded by 10% over the past year.
Against this background, the bank lifted its 2026 full-year net interest income outlook to approximately $106.2 billion dependent on market conditions, and $97.2 billion when excluding markets revenue, both slightly revised upward. Preliminary guidance for 2027 sets this figure at about $107 billion.
JPMorgan absorbed $658 million in securities losses related to the bond market downturn. Excluding these, the per-share profit was $5.75.
CEO Jamie Dimon noted that solid business investment and sustained consumer spending continue to support U.S. economic momentum. However, fiscal imbalances, steady inflation, elevated asset values, and shifting geopolitical dynamics remain potential headwinds.
The company’s annual adjusted expense forecast was increased to about $108.6 billion, reflecting higher revenues and corresponding expense growth.
JPMorgan’s management commented that while the investment banking pipeline remains sizable, the most recent slowdown suggests deals may face delays in the near term. Typical seasonal market revenue declines are expected in the final months of the year.
On the consumer side, lending trends remain positive, with credit card loans up 7% from a year prior and charge-off rates improving, consistent with the resilience seen among other major U.S. banks.
