JPMorgan posts rare profit miss as bank earnings kick off; stocks dip ahead of inflation data
JPMorgan Chase missed Wall Street's profit estimate for the first time since late 2023 as dealmaking and bond trading cooled, while Goldman Sachs and Citigroup topped forecasts. The Dow slipped 0.35% on Tuesday as investors waited for Wednesday's consumer price report.
The headline number: JPMorgan Chase reported third-quarter net income of $15.3 billion, or $5.57 a share, up 6% from a year earlier, on managed revenue of $50.9 billion, up 8%, the bank said in its earnings release. Analysts had expected $5.85 a share, according to LSEG estimates cited by Reuters. Reuters said it was the bank's first profit miss since the fourth quarter of 2023.
Why it missed: Investment banking fees rose 14% from a year earlier but fell 8% from the second quarter, and fixed-income trading revenue fell 4%, JPMorgan reported. Equity trading jumped 49%. Excluding $658 million of net losses on investment securities, the bank said it earned $15.8 billion, or $5.75 a share. Reuters reported that a slowdown in the IPO market weighed on dealmaking. Chief Financial Officer Jeremy Barnum told reporters the deal pipeline remained strong and he expects deals to be delayed rather than canceled.
Dimon's view: "The U.S. economy continued to be fueled by strong business investment and ongoing consumer spending," CEO Jamie Dimon said in the release. He added that "large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface."
The other banks: Goldman Sachs' profit rose 33% to $5.1 billion on revenue up 23% to $18.7 billion, Sharecast reported. Citigroup earned $5.2 billion, or $2.85 a share, ahead of forecasts, on revenue up 8% to $23.8 billion. Wells Fargo's earnings of $1.87 a share beat expectations, but its revenue of $21.87 billion fell short, according to Sharecast.
How stocks closed: The Dow Jones Industrial Average fell 180.45 points, or 0.35%, to 51,670.10 on Tuesday. The S&P 500 slipped 0.02% to 7,805.45, and the Nasdaq Composite fell 0.15% to 27,204.38, Sharecast reported. JPMorgan shares ended down 0.86%, and Citigroup fell 5.6% despite its beat, according to Sharecast's closing data. Johnson & Johnson, which raised its full-year outlook, dropped 5.7%.
Rates backdrop: Reuters noted that loan growth is under closer watch after the Federal Reserve raised interest rates in September for the first time since 2023. JPMorgan raised its 2026 net interest income forecast to about $106.2 billion.
What's next: The Bureau of Labor Statistics is scheduled to release the September consumer price index at 8:30 a.m. ET Wednesday. Earnings season continues through the week.
Sources
- Reuters via KSL.com — JPMorgan posts rare profit miss as dealmaking, bond trading lose momentum
- JPMorgan Chase — Third-quarter 2026 earnings release (SEC Exhibit 99.1)
- Sharecast — US close: Stocks lower as traders digest Q3 banks earnings
- U.S. Bureau of Labor Statistics — Schedule of releases for the Consumer Price Index