JPMorgan Chase (JPM) FY2026 Q3 Earnings Explained
Profit growth, with interest income powering the results
JPMorgan Chase’s total net revenue for the quarter was $50.17 billion, up 8% year over year; net income was $15.31 billion, up 6%; and diluted earnings per share were $5.57, up 10%. The main engine was still net interest income, which came in at $27.04 billion, up 13%, helped by higher net interest income in markets, deposit balances, revolving credit card balances, and wholesale loan balances. Expense pressure was also notable, with non-interest expense at $27.3 billion, up 12%, mainly due to higher compensation, technology, and marketing spending. Provision for credit losses was $2.74 billion, below $3.4 billion a year earlier, but credit cards were still the main source of net charge-offs. The company also booked $658 million in net losses on investment securities after adjusting its portfolio, which weighed on non-interest income.
📊 Stock Price & Market Cap
- On the filing date, the stock traded at $337.98, below its 52-week high of $365.18 and above its 52-week low of $282.84, so it was not especially cheap, but also not back near its yearly high.
- Based on the filing-date data, JPMorgan’s market cap was about $897.54 billion, making it one of the largest banks in the U.S.
- Diluted EPS over the past 12 months was $23.84, which works out to a trailing P/E of 14.2x. That suggests the market is valuing it more like a mature large-cap financial stock than a high-growth tech name.
Data as of 2026-11-03 (filing date) · Price: Yahoo Finance · Shares & EPS: SEC filing · Forward P/E: not available · Yahoo Finance
🏦 What Wall Street Thinks
The analyst consensus is Buy overall, with 10 Strong Buy, 5 Buy, 11 Hold, and 0 Sell. The target price range is $312 to $425, with an average target of $373.81. The view is generally positive, though not unanimous.
Ratings as of: 2026-10-29 · Price targets as of: 2026-11-04 · Source: stockanalysis.com
Analyst forecasts are for reference only. Historically, price targets have not been very accurate. Invest at your own risk.
💰 How Much They Made
| This quarter | Year ago | Change | |
|---|---|---|---|
| Total net revenue | $50.17B | $46.43B | ▲ 8.1% |
| Net interest income | $27.04B | $23.97B | ▲ 12.8% |
| Non-interest income | $23.14B | $22.46B | ▲ 3.0% |
| Provision for credit losses | $2.74B | $3.40B | ▼ 19.4% |
| Net income | $15.30B | $14.39B | ▲ 6.3% |
| Diluted earnings per share | $5.57 | $5.07 | ▲ 9.9% |
- This is a bank, so instead of focusing on gross margin, it makes more sense to look at net interest income: this quarter it was $27.04 billion, up 13% year over year, and was the main driver of profit growth.
- Non-interest income was $23.14 billion, up 3% year over year. The growth was not very fast, because net losses of $658 million from changes to the investment securities portfolio offset part of the gains in fees, asset management, and investment banking.
- Provision for credit losses was $2.74 billion, below $3.4 billion a year earlier, which means the company set aside less money for potential bad loans this quarter, helping profits.
📊 Where the Money Went
| This quarter | Year ago | Change | |
|---|---|---|---|
| Compensation expense | $14.77B | $13.57B | ▲ 8.9% |
| Occupancy expense | $1.52B | $1.42B | ▲ 7.4% |
| Technology, communications and equipment expense | $3.33B | $2.84B | ▲ 17.5% |
| Professional and outside services expense | $3.90B | $3.17B | ▲ 22.8% |
| Marketing expense | $1.92B | $1.48B | ▲ 29.5% |
| Other expense | $1.85B | $1.80B | ▲ 2.6% |
| Total non-interest expense | $27.30B | $24.28B | ▲ 12.4% |
- Expenses grew faster than revenue: non-interest expense was $27.3 billion, up 12% year over year, mainly driven by compensation, technology, marketing, and outside services.
- Management said higher compensation mainly came from revenue-related bonuses, wage inflation, and more front-office headcount; technology and marketing spending were continued investments to support business expansion.
🏢 Business Segments
Revenue was $21.17 billion, up 9% year over year; net income was $5.67 billion, up 13%. The growth was mainly driven by credit card, deposit, and wealth management-related income.
Revenue was $22.73 billion, up 14% year over year; net income was $8.25 billion, up 20%. Investment banking fees and markets were strong, especially equity markets revenue.
Revenue was $6.91 billion, up 14% year over year; net income was $1.84 billion, up 11%. Asset management fees were lifted by higher market levels and net inflows.
Revenue was $93 million, compared with $1.7 billion a year earlier; the segment posted a loss of $455 million this quarter. This was mainly due to net losses on investment securities and other factors.
🏦 Balance Sheet
| Period end | Prior FY end | Change | |
|---|---|---|---|
| Total assets | $5.09T | $4.42T | ▲ 15.1% |
| Total liabilities | $4.72T | $4.06T | ▲ 16.2% |
| Shareholders’ equity | $372.37B | $362.44B | ▲ 2.7% |
| Cash and due from banks | $326.27B | $343.34B | ▼ 5.0% |
| Long-term debt | $460.16B | $435.21B | ▲ 5.7% |
- At quarter-end, JPMorgan’s total assets were about $5.09 trillion and shareholders’ equity about $372.37 billion, showing continued expansion in scale.
- Asset growth mainly came from higher market-related assets, loans, and investment securities; on the liabilities side, the biggest drivers were deposits, repurchase financing, and long-term debt.
- Cash and due from banks was $326.27 billion, below $343.34 billion at the end of last fiscal year. Management said this was related to market activity, loan growth, and net purchases of investment securities.
⚠️ For banks, total assets ($5.09T) are mostly loans and securities funded by deposits and other liabilities, so market value ($897.54B) is usually far below total assets. A more useful yardstick is market value vs. shareholders' equity: JPMorgan Chase trades at 2.4× its equity.
📈 vs. Last Quarter
| This quarter | Last quarter | Change | |
|---|---|---|---|
| Total net revenue | $50.17B | $57.35B | ▼ 12.5% |
| Net interest income | $27.04B | $25.51B | ▲ 6.0% |
| Non-interest income | $23.14B | $31.84B | ▼ 27.3% |
| Provision for credit losses | $2.74B | $2.52B | ▲ 9.1% |
| Net income | $15.30B | $21.16B | ▼ 27.7% |
| Diluted earnings per share | $5.57 | $7.70 | ▼ 27.7% |
- Sequentially, net income fell from $21.16 billion to $15.31 billion, mainly because last quarter included net gains related to Visa stock and some gains from equity investments, which raised the comparison base.
- Net interest income rose to $27.04 billion quarter over quarter, but non-interest income fell from $31.84 billion to $23.14 billion, showing that this quarter had less of the one-time boost seen last quarter.
- Provision for credit losses increased quarter over quarter from $2.52 billion to $2.74 billion, which also weighed somewhat on profits.
📅 vs. a Year Ago
| This quarter | Year ago | Change | |
|---|---|---|---|
| Total net revenue | $50.17B | $46.43B | ▲ 8.1% |
| Net interest income | $27.04B | $23.97B | ▲ 12.8% |
| Total non-interest expense | $27.30B | $24.28B | ▲ 12.4% |
| Provision for credit losses | $2.74B | $3.40B | ▼ 19.4% |
| Net income | $15.30B | $14.39B | ▲ 6.3% |
| Diluted earnings per share | $5.57 | $5.07 | ▲ 9.9% |
- Revenue growth was mainly driven by net interest income: management said higher net interest income in markets, deposit balances, revolving credit card balances, and wholesale loan balances offset the impact of lower interest rates.
- Non-interest income grew more slowly because gains in asset management fees, investment banking fees, and card income were offset by net losses on investment securities, lower non-interest income in some market businesses, and losses on equity investments.
- Expenses rose mainly because of higher compensation, technology, marketing, brokerage, and distribution costs. In simple terms, earnings power is improving, but spending is not slowing down.
- Provision for credit losses was below the same period last year, mainly because net charge-offs declined and new reserves were lower than last year, which was a positive for net income.
🎯 Key Takeaways for Investors
Net interest income was $27.04 billion, up 13% year over year, and was the clearest growth engine this quarter. For a bank, that’s basically the “spread and scale” engine still running strong.
Commercial & Investment Bank revenue rose 14% year over year, and Asset & Wealth Management revenue also rose 14%. Management noted that investment banking fees, asset management fees, card income, and equity markets all performed well.
Non-interest expense was $27.3 billion, up 12% year over year, faster than the 8% growth in total net revenue. The main reasons were higher spending on compensation, technology, marketing, and outside services. The key question going forward is whether those investments keep translating into revenue growth.
This quarter’s provision for credit losses was below last year’s level, but within consumer credit, credit cards still accounted for most net charge-offs. Management also guided to a full-year credit card net charge-off rate of about 3.2%, so this area still needs close attention.
Management expects fourth-quarter net interest income of about $28 billion and full-year net interest income of about $106.2 billion; it also expects adjusted full-year expenses of about $108.6 billion. In other words, revenue still has support, but cost control remains just as important.
📄 Original Filing
- Original 10-Q on SEC EDGAR (2026-11-03, accession 0001628280-26-069523)
- SEC filing index (incl. financial statements)
This page was generated by AI from the company's SEC filing and translated by AI. Not investment advice.