Key Notes
- JPMorgan’s net income rose 6% to $15.31 billion, while EPS excluding securities losses came in at $5.75 against the $5.90 LSEG estimate.
- Managed revenue rose 8% to $50.91 billion but missed the $51.22 billion estimate, with equity trading strength offset by weaker fixed-income results.
- The bank raised its full-year interest-income and expense outlooks while reducing share repurchases to prioritize investment and client activity.
JPMorgan Chase & Co. (NYSE: JPM) reported a 6% increase in third-quarter profit, but adjusted earnings and managed revenue fell short of analyst expectations as weaker fixed-income trading and faster expense growth tempered gains elsewhere in the bank.
The bank’s release showed net income of $15.31 billion, or $5.57 per share. Excluding a significant securities-loss item, earnings were $5.75 per share, still below the $5.90 LSEG estimate, CNBC reported.
Managed revenue reached $50.91 billion, compared with the $51.22 billion consensus. The results show why growth from a year earlier and an earnings beat are different tests: JPMorgan expanded its business, but expectations had risen further.
A Securities Loss Reduced Reported EPS
JPMorgan recorded $658 million of net investment securities losses in its Corporate segment. The after-tax effect was $498 million, reducing reported EPS by 18 cents. Excluding that item, net income would have been approximately $15.8 billion.
The reported $5.57 figure includes that loss; the bank’s $5.75 measure excludes it. On the adjusted comparison reported by CNBC, earnings were 15 cents below the LSEG estimate.
Revenue also has two presentations. GAAP reported revenue was $50.17 billion, while the $50.91 billion consensus comparison uses managed revenue. The managed measure puts certain tax-exempt income on a fully taxable-equivalent basis. The bank says those adjustments do not change firmwide net income.
Equity Trading Grows as Fixed Income Declines
Markets revenue rose 15% from a year earlier to $10.3 billion, but performance differed sharply between desks. Equity Markets generated about $5 billion, up 49%, helped particularly by prime services and derivatives. Fixed Income Markets revenue fell 4% to $5.4 billion.
Investment-banking fees increased 14% to approximately $3 billion, primarily reflecting higher advisory fees. The wider Commercial & Investment Bank reported $22.7 billion of revenue and $8.2 billion of net income, increases of 14% and 20%, respectively.
Chief Executive Jamie Dimon said strong client activity supported the businesses, although trading and investment-banking activity moderated during the quarter. That leaves investors assessing both the year-over-year improvement and the pace of activity heading into the final months of 2026.
Higher Interest Income Comes With Higher Costs
Firmwide net interest income increased 13% to $27.1 billion. Excluding Markets, it rose 6% to $24.7 billion, supported by higher deposit, credit-card and wholesale-loan balances, partly offset by the effect of lower rates.
Average loans grew 10% and average deposits 8% from a year earlier. Consumer & Community Banking revenue increased 9% to $21.2 billion, with credit cards and auto financing contributing to growth. Debit and credit-card sales volume, excluding commercial cards, rose 10%.
Noninterest expense climbed 12% to $27.3 billion, outpacing the 8% increase in managed revenue. JPMorgan cited compensation, additional front-office employees, brokerage and distribution fees, marketing and technology among the drivers.
Technology investment also sits within wider changes to banking workforces, as we previously reported. The quarter’s expense increase covers several business activities, making the balance between investment, client activity and productivity more informative than treating all higher costs as one trend.
The Interest-Income Outlook Rises Alongside Expenses
JPMorgan raised its 2026 net interest income outlook to $106.2 billion from $105.5 billion, according to CNBC’s update on the bank’s presentation. Guidance excluding Markets increased to $97.2 billion from $96.5 billion.
The bank also lifted its full-year expense outlook to $108.6 billion from $107.5 billion. Those are management forecasts, rather than completed annual results. Their combined effect matters more to the earnings outlook than the higher interest-income projection alone.
The stock’s early response was volatile. CNBC reported that JPMorgan shares were up roughly 1% around 7:20 a.m. Eastern time after initially declining. That premarket snapshot is not a regular-session closing return.
Credit Costs and Capital Returns Remain in Focus
Provision for credit losses was $2.74 billion, below $3.40 billion a year earlier. The quarter included approximately $2.2 billion of net charge-offs and a $539 million net reserve build, primarily in wholesale lending. The credit-card net charge-off rate was 2.91%.
Charge-offs recognize losses on loans, while reserve changes reflect adjustments to amounts set aside for expected losses. Lower total provisions therefore need to be read alongside lending growth and portfolio quality, rather than as evidence that every category of credit risk has declined.
JPMorgan distributed $4.4 billion in common dividends, or $1.65 per share, and recorded $664 million of net common-share repurchases. Its estimated Standardized common equity Tier 1 capital ratio was 13.9%. Dimon said the bank reduced buybacks while prioritizing investment in its franchise and support for clients.
That quarterly purchase figure is separate from the $50 billion repurchase program authorized in June. Authorization gives management capacity to buy shares at its discretion; it does not commit the bank to spend the entire amount in a particular quarter.
Dimon described continued support from business investment and consumer spending while highlighting fiscal deficits, persistent inflation, elevated asset prices, rising interest rates and geopolitical risks. For JPM shareholders, the final-quarter tests now include trading activity, the revised cost outlook and how much of the bank’s interest-income growth reaches profit.
