JPMorgan Chase & Co. (NYSE: JPM) delivered a strong second quarter, supported by elevated trading activity, faster investment banking revenue and continued balance-sheet growth. Reported earnings were lifted by sizeable equity-related gains, but underlying profitability also remained robust. For investors, the central issue is whether revenue momentum can offset rising expenses, lower-rate pressure and persistent macroeconomic risks.

Key Highlights

  • Managed revenue rose 27% year on year to USD 58.0 billion, while net income increased 41% to USD 21.2 billion.
  • Excluding significant items, net income was USD 16.9 billion, diluted EPS was USD 6.14 and ROTCE was 23%.
  • Markets revenue increased 35%, led by an 86% rise in Equity Markets revenue and a 30% increase in investment banking fees.
  • Average loans grew 10% and deposits rose 7%, while the standardised CET1 capital ratio stood at 14.1%.
  • FY2026 guidance points to net interest income of about USD 105.5 billion and adjusted expense of roughly USD 107.5 billion.

JPMorgan Chase Q2 2026 Earnings Show Broad-Based Revenue Growth

JPMorgan Chase & Co. (NYSE: JPM) reported second-quarter managed revenue of USD 58.0 billion, up 27% from a year earlier, with net income reaching USD 21.2 billion and diluted EPS of USD 7.70. Reported return on tangible common equity, or ROTCE, was 29%. The headline result included a USD 4.6 billion gain linked to Visa Inc. (NYSE: V) shares and USD 1.0 billion of gains on certain equity investments.

Excluding those items, net income was USD 16.9 billion, EPS was USD 6.14 and ROTCE was 23%. Revenue still increased 15% on the same basis, showing that operating performance remained strong beyond the one-off gains.

Net interest income rose 10% to USD 25.6 billion. Excluding Markets, it increased 4% to USD 23.7 billion, supported by higher deposits, greater revolving card balances and stronger wholesale loan volumes. Lower interest rates partly offset those benefits.

Investment Banking and Equity Trading Lead CIB Performance

The Commercial & Investment Bank was the main earnings engine. Revenue increased 27% to USD 24.9 billion, while net income rose 46% to USD 9.7 billion. Investment banking revenue climbed 45% to USD 3.9 billion, and investment banking fees increased 30%, with equity underwriting particularly strong.

Markets revenue rose 35% to USD 12.1 billion. Fixed Income Markets revenue increased 6% to USD 6.1 billion, while Equity Markets revenue surged 86% to USD 6.0 billion. The increase reflected elevated client activity, strong trading performance and continued demand for equity financing.

Payments revenue grew 12% to USD 5.3 billion, while Securities Services revenue rose 17% to USD 1.7 billion. These businesses broadened growth beyond capital markets and reduced dependence on a single revenue source.

Consumer Banking Growth Comes With Higher Costs

Consumer & Community Banking generated revenue of USD 20.3 billion, up 8%, and net income of USD 5.3 billion, up 3%. Card Services and Auto revenue increased 12%, driven by higher card net interest income, larger revolving balances and stronger auto operating lease income.

Card sales volume rose 10% to USD 373.1 billion, while active mobile customers increased 6% to 63.7 million. Average consumer loans grew 2%, and average deposits increased 3%, indicating continued customer engagement across the retail franchise.

Expenses increased 13% to USD 11.1 billion, reflecting higher marketing, technology, compensation and auto lease depreciation. Credit costs were USD 2.2 billion. The Card Services net charge-off rate was 3.34%, slightly below 3.40% a year earlier.

Wealth Management Benefits From Net Inflows

Asset & Wealth Management revenue rose 19% to USD 6.9 billion, while net income increased 33% to USD 2.0 billion. Assets under management reached USD 5.1 trillion, up 18%, and client assets increased 19% to USD 7.7 trillion.

The division recorded USD 50 billion of long-term net inflows and USD 22 billion of liquidity net inflows. Average loans increased 18% to USD 284.3 billion, while deposits rose 5% to USD 260.1 billion. Return on equity reached 48%, reflecting scale, market appreciation and sustained inflows.

Capital Strength Offsets Expense and Macro Risks

CET1 capital stood at USD 303 billion, with standardised and advanced CET1 ratios of 14.1% and 14.2%. Average deposits reached USD 2.7 trillion, while average loans rose to USD 1.5 trillion. Tangible book value per share increased 10% year on year to USD 113.35.

Capital distributions comprised USD 4.0 billion of common dividends and USD 6.2 billion of net share repurchases. The last-12-month net payout ratio was 73%.

Management expects FY2026 net interest income of about USD 105.5 billion and net interest income excluding Markets of roughly USD 96.5 billion. Adjusted expense is expected to reach approximately USD 107.5 billion, reflecting stronger activity and higher volume- and revenue-linked costs. The expected Card Services net charge-off rate is around 3.2%.

The central tension is that stronger revenue is arriving alongside higher compensation, technology, marketing and distribution expenses. Lower rates may also pressure core net interest income, while geopolitical tensions, sticky inflation, fiscal deficits and elevated asset prices remain material external risks.