JPMorgan Chase (JPM.US) Q3 revenue and EPS miss expectations; decline in fixed income trading weighs on performance.

JPMorgan Chase (JPM.US) released its Q3 2026 financial results before the U.S. market opened on October 13. Quarterly revenue was $50.907 billion, up 8% year-over-year, missing market expectations; adjusted earnings per share came in at $5.75, also below market expectations. Net income was $15.305 billion, up 6% year-over-year. The earnings miss was mainly dragged down by a decline in fixed income trading revenue and rising costs. Quarterly Markets revenue was $10.3 billion, up 15% year-over-year, of which equity trading revenue was $4.954 billion, surging 49% year-over-year, while fixed income trading revenue was $5.366 billion, down 4% year-over-year and significantly below market expectations of about $6 billion. Noninterest expense was $27.295 billion, up 12% year-over-year, growing faster than revenue; noninterest revenue was $23.776 billion, up 3% year-over-year; net interest income was $27.1 billion, up 13% year-over-year. By segment, Consumer & Community Banking (CCB) net revenue was $21.171 billion, up 9% year-over-year, with net income of $5.670 billion, up 13% year-over-year; the card net charge-off rate fell to 2.91% (3.15% in the year-ago period), and the segment added more than 650,000 net new checking accounts during the quarter. Corporate & Investment Bank (CIB) net revenue was $22.734 billion, up 14% year-over-year, with net income of $8.247 billion, up 20% year-over-year, including Banking & Payments revenue of $10.958 billion, up 16% year-over-year, and investment banking fees of $3 billion, up 14% year-over-year. Asset & Wealth Management (AWM) net revenue was $6.909 billion, up 14% year-over-year, with net income of $1.843 billion and net client asset inflows of $263 billion. The Corporate segment posted a net loss of $455 million, mainly due to the aforementioned securities investment losses. On asset quality, the quarterly provision for credit losses was $2.743 billion, down from $3.403 billion in the year-ago period; net charge-offs were $2.2 billion, down $389 million year-over-year, mainly from the wholesale business; net reserve build was $539 million, compared with $810 million in the year-ago period. On capital, the Standardized CET1 ratio was 13.9%, and book value per share was $132.30, up 6% year-over-year. The quarterly common stock dividend was $1.65 per share, with net repurchases of $664 million. JPMorgan Chairman and CEO Dimon said all business lines performed well, and that "huge fiscal deficits, sticky inflation, elevated asset prices, rising rates and the political situation of GEO Group Inc" continue to evolve; these forces are "perhaps manageable," but the company is "prepared for a wide range of outcomes." Following the earnings release, as of press time, JPMorgan shares were down about 2.4% in premarket trading.