JPMorgan (JPM) Stock: Earnings Beat Forecasts Despite Apple Card Costs Dragging Down Profit

TLDR

Table of Contents

Fourth-quarter net income fell 7% to $13 billion, but adjusted earnings of $5.23 per share topped the $4.85 estimate
A $2.2 billion charge from the Apple Card acquisition from Goldman Sachs weighed on results
Full-year revenue reached a record $182 billion while net income dropped to $57 billion from $58.5 billion
The bank forecasts 2026 expenses rising 9% to $105 billion and net interest income growing 3% to $95 billion
Shares gained 33% over the past year with market cap surpassing $900 billion for the first time

JPMorgan Chase delivered better-than-expected adjusted earnings for the fourth quarter despite a profit decline linked to its Apple Card takeover.

EARNINGS SEASON IS NOW OFFICIALLY BACK
JPMorgan $JPM reported earnings this morning
– EPS of $5.23 beating expectations of $4.92🟢
– Revenue of $46.8B beating expectations of $46B🟢 pic.twitter.com/2TUzWBkxuo
— Evan (@StockMKTNewz) January 13, 2026

The bank reported net income of $13 billion for the quarter, down 7% year-over-year. Earnings per share came to $4.63, missing Wall Street’s $4.85 projection.

But those figures included a hefty $2.2 billion charge from acquiring the Apple Card business from Goldman Sachs. Stripping out that one-time cost, profit reached $14.7 billion, or $5.23 per share, beating analyst estimates.

JPMorgan Chase & Co., JPM

Revenue rose 7% to $45.8 billion in the quarter. Net interest income, what banks earn from lending minus deposit costs, climbed 7% to $25.1 billion.

The payments division posted record revenue of $5.1 billion, jumping 9% from last year. Higher deposit balances and fees fueled the increase.

Strong Trading Offsets Dealmaking Weakness

Trading operations had a standout quarter. Wall Street fee revenues from equities, fixed income, currency and commodity trading surged 15% compared to the fourth quarter of 2024.

The performance exceeded analyst forecasts. Dealmaking revenue, however, slipped 4% from the prior year, missing estimates due to weaker bond and equity underwriting fees.

For the full year, JPMorgan earned $57 billion in net income. That’s down from the record $58.5 billion posted in 2024 but still represents the bank’s second-best year ever.

Annual revenue hit an all-time high of $182 billion. Investment banking fees grew 8% to $9.6 billion while client trading revenue increased 8% to $30 billion.

CEO Jamie Dimon offered measured commentary on the economy. “The U.S. economy has remained resilient,” he said in a statement.

Labor markets have softened but aren’t deteriorating further. Consumers continue spending and businesses generally stay healthy, according to Dimon.

Dimon Cautions on Economic Risks

The long-serving CEO also issued a warning. “Markets seem to underappreciate the potential hazards,” Dimon said.

He pointed to complex geopolitical conditions, sticky inflation risks, and elevated asset prices as concerns. It’s typical caution from Dimon, who has consistently flagged economic uncertainties.

JPMorgan provided 2026 guidance showing expenses rising 9% to $105 billion. Net interest income excluding markets should grow 3% to $95 billion.

The expense outlook, shared last month by consumer banking chief Marianne Lake, initially sent shares down 5%. Analysts note the bank often comes in below its expense guidance, suggesting the forecast may be conservative.

Stock Performance and Apple Card Deal

JPMorgan shares rose 0.3% in premarket trading following the earnings release. The stock has climbed 33% over the past year, outperforming the S&P 500’s 20% gain.

The bank’s market value crossed $900 billion this month, making it just the 13th U.S. company to reach that threshold.

The Apple Card transaction adds over $20 billion in card balances to JPMorgan’s portfolio. The deal expands the bank’s credit card operations as President Trump called for a 10% cap on credit card interest rates, though experts question his authority to impose such limits.

JPMorgan maintained its position as the top global investment bank for the thirteenth consecutive year, according to Dealogic. The bank advised on major deals including the Electronic Arts leveraged buyout and led the Medline IPO, the year’s largest.

Card net charge-offs, measuring credit quality, came in at 3.3% for 2025.