U.S. banks kicked off the third-quarter earnings season with a wave of upside surprises, as JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group Inc. (NYSE:GS), Wells Fargo & Co. (NYSE:WFC), and Citigroup Inc. (NYSE:C) all topped Wall Street expectations, signaling continued strength across lending, trading, and consumer banking.
| Company | EPS | EPS Surprise | Revenue (B) | Revenue Surprise |
|---|---|---|---|---|
| JPMorgan Chase & Co. | $5.07 | +4.84% | $47.12 | +3.82% |
| Citigroup Inc. | $2.24 | +17.89% | $22.09 | +4.76% |
| Wells Fargo & Co. | $1.66 | +7.44% | $21.44 | +1.37% |
| Goldman Sachs Group Inc. | $12.25 | +11.38% | $15.18 | +7.69% |
JPMorgan Tops Estimates
According to Benzinga Pro, JPMorgan Chase & Co. reported earnings per share of $5.07, beating the consensus of $4.84.
Net income rose 16% year-over-year to $14.4 billion, while revenue jumped 8.78% to $47.12 billion, surpassing forecasts by more than $1.7 billion.
The bank delivered a 20% return on tangible common equity (ROTCE), a key profitability metric, and saw robust performance across all business lines.
CEO Jamie Dimon said JPMorgan saw "record third-quarter Markets revenue of nearly $9 billion," with investment banking fees rising 16% thanks to improving deal flow in equity and M&A activity.
In consumer banking, JPMorgan added over 400,000 net new checking accounts and reached a new high in first-time investors, surpassing 43,000. Its wealth management unit generated $109 billion in net inflows, while asset and wealth management revenue exceeded $6 billion.
Dimon highlighted macroeconomic uncertainty, noting signs of softening in the labor market and persistent geopolitical risks.
"The U.S. economy generally remained resilient," he said, but warned of "elevated asset prices and the risk of sticky inflation."
What Did Analysts Say About JPMorgan's Results?
Goldman Sachs analyst Richard Ramsden expects a positive investor response, despite net interest income (NII) for the third quarter coming in slightly below estimates.
Ramsden highlighted that JPMorgan raised its full-year 2025 NII guidance (excluding markets) to $92.2 billion and now sees 2026 NII at about $95 billion, above the consensus of $94.5 billion.
The firm also trimmed its 2025 guidance on credit card net charge-offs—loan losses from unpaid balances—to 3.3%, from 3.6% previously.
JPMorgan’s cost guidance was lifted only modestly, to $95.9 billion from $95.5 billion, suggesting better-than-feared expense control. Goldman's price target of $350 implies a 13.6% upside on JPM shares.
Wells Fargo Delivers and Raises ROTCE Target
Wells Fargo also impressed with EPS of $1.66, beating estimates by 7.4%. Revenue of $21.44 billion climbed 5.25% year-over-year and came in modestly ahead of projections.
The positive surprise was driven by better fee income in areas like cards and capital markets, and a much lower provision for credit losses—$681 million versus a forecast of $1.2 billion.
The bank raised its medium-term ROTCE target to 17-18%, up from a prior 15%, and announced a new common equity tier 1 capital (CET1) target of 10-10.5%, signaling more aggressive capital deployment plans.
Its 2025 net interest income guidance remains unchanged at $47.7 billion, slightly above Wall Street estimates.
Shares of Wells Fargo jumped 2.7% in early trading on Tuesday, outperforming the other major banks.
Goldman Sachs and Citigroup Also Beat Expectations
Goldman Sachs reported an EPS of $12.25, surpassing the $11 estimate by over 11%, driven by strong trading and investment banking performance.
Revenue soared nearly 20% year-over-year to $15.18 billion, outpacing the $14.1 billion consensus. However, the stock slid 5% in early trading on Tuesday.
Citigroup delivered an EPS of $2.24, up a staggering 48.3% from a year ago and ahead of the $1.90 estimate. Revenue rose 8.74% to $22.09 billion. The stock edged up 0.6% in early trading.
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