JPMorgan Chase & Co. (JPM) Up 5.3% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for JPMorgan Chase & Co. (JPM). Shares have added about 5.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is JPMorgan Chase & Co. due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for JPMorgan Chase & Co. before we dive into how investors and analysts have reacted as of late.

JPMorgan’s Q2 Earnings Beat on Trading & IB, Loan Growth Supports NII

JPMorgan’s second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago.

Reported net revenues of $57.35 billion rose 27.7% year over year and topped the consensus mark of $49.14 billion. Strong Markets and IB activity powered core growth, while NII got support from decent loan demand.

The quarter included a $4.55 billion pretax gain related to Visa shares, which added $1.27 to earnings per share. JPM also recorded $1.03 billion of gains on certain equity investments, adding 29 cents per share. Including these significant items, net income jumped 41% year over year to $21.16 billion.

Markets and Fee Income Momentum Boosts Growth

Markets revenues advanced 35% to $12.08 billion on elevated client activity, strong trading performance and continued financing demand in Equities. Fixed Income Markets revenues rose 6% to $6.05 billion, while Equity Markets revenue surged 86% to $6.03 billion.

IB revenues increased 45% to $3.90 billion. IB fees rose 30% to $3.28 billion on higher fees across products, led by equity underwriting. Payments revenues grew 12% to $5.30 billion, while Securities Services revenues gained 17% to $1.66 billion.

NII Benefits From Balance Sheet Expansion

Reported NII increased 9.9% to $25.51 billion. NII excluding Markets was $23.68 billion, up 4%, supported by higher deposit balances, greater revolving Card Services balances and wholesale loan growth. Lower rates partly offset those benefits.

Average loans expanded 10% to $1.52 trillion, while average deposits grew 7% to $2.69 trillion. The net yield on interest-earning assets was 2.40%, down from 2.43% a year earlier, showing rate pressure despite balance sheet growth.

Expenses Temper Gains

Non-interest expenses rose 15% year over year to $27.32 billion. Higher compensation, brokerage and distribution fees, marketing, technology and occupancy costs drove the increase. Still, the reported overhead ratio improved to 48% from 53% in the prior-year quarter.

Credit Trends Offer Support

The provision for credit losses was $2.52 billion, down 12%. Net charge-offs (NCOs) were $2.4 billion, down $44 million, and the company recorded a $149 million net reserve build, primarily in Wholesale. Consumer & Community Banking accounted for $2.16 billion of the provision.

Segment Performance Improves

Commercial & Investment Bank revenues climbed 27% from the prior-year quarter to $24.85 billion, while net income soared 46% to $9.68 billion. 

Consumer & Community Banking revenues grew 8% to $20.27 billion, led by higher Card Services NII, auto operating lease income and wealth-management fees. Segment net income rose 3% to $5.31 billion. Debit and credit card sales volume rose 10% to $535.8 billion, while active mobile customers increased 6% to 63.7 million. 

Asset & Wealth Management revenues climbed 19% to $6.85 billion. Assets under management reached $5.1 trillion, up 18%, aided by $50 billion of long-term net inflows.

Corporate net income was $4.21 billion compared with $1.7 billion a year ago, influenced by net gain related to Visa shares and gains on certain equity investments.

Capital Returns

JPMorgan’s capital position remained strong, even as ratios eased versus year-ago levels. The standardized common equity Tier 1 capital ratio was 14.1% as of June 30, 2026, compared with 15.1% a year earlier. Tangible book value per share rose 10% to $113.35. 

Shareholder returns stayed elevated. The bank paid a common dividend of $4 billion, or $1.50 per share, and reported $6.2 billion of common stock net repurchases during the quarter.

Outlook for 2026

Management expects 2026 NII of roughly $105.5 billion and NII excluding Markets of about $96.5 billion. Both metrics show increases from the prior targets.

Adjusted expenses are projected at around $107.5 billion, with the increase from the prior outlook of $106 billion reflecting higher volume- and revenue-related costs. 

The Card Services NCO rate is now expected to be approximately 3.2%, down from the previous target of 3.4%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 6.04% due to these changes.

VGM Scores

Currently, JPMorgan Chase & Co. has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise JPMorgan Chase & Co. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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