JPMorgan Chase opened the third-quarter earnings season for major U.S. banks with results that fell short of Wall Street expectations. The firm posted net income of $15.3 billion for the period ended September 30, a 6% increase from the year-earlier quarter, while diluted earnings per share reached $5.57, up 10% from $5.07. Excluding a significant item, net income stood at $15.8 billion, or $5.75 per share.

Managed revenue rose 8% year over year to $50.9 billion, though it missed consensus forecasts by roughly $320 million. Reported revenue under U.S. GAAP totaled $50.2 billion. A $658 million net loss on investment securities weighed on the results and reduced earnings per share by 18 cents.

Fixed Income Markets Decline While Equities Surge

Fixed income markets revenue came in at $5.4 billion, down 4% from the prior year and more than $500 million below analyst estimates. The desk recorded its first year-over-year revenue decline in recent periods, with weakness in commodities, rates, credit and public finance only partly offset by stronger currencies and emerging markets activity.

Equity markets provided a sharp contrast, generating $5.0 billion in revenue, a 49% jump year over year. Strength across products, particularly prime services and derivatives, drove the gain. Overall markets revenue increased 15% to $10.3 billion.

Investment banking fees rose 14% from a year earlier but declined 8% from the second quarter. Chief Executive Officer Jamie Dimon noted that client activity in investment banking and markets had moderated from the elevated levels of the previous quarter.

Consumer Banking and Lending Remain Resilient

Net interest income excluding markets climbed 6% to $24.7 billion, supported by higher deposit balances, growth in card services and increased wholesale loans. Average loans rose 10% year over year. Consumer and Community Banking revenue increased 9% to $21.2 billion, with net income up 13% to $5.7 billion.

Credit costs totaled $2.7 billion, including $2.2 billion in net charge-offs—down $389 million from the prior year—and a $539 million net reserve build concentrated in wholesale banking. The standardized Common Equity Tier 1 ratio stood at 13.9%.

Outlook for Net Interest Income Raised

Management lifted its full-year 2026 net interest income guidance to approximately $106.2 billion from the previous $105.5 billion. Excluding markets, the outlook moved to about $97.2 billion from $96.5 billion. The firm guided to roughly $25.5 billion of trading-exempt net interest income in the fourth quarter.

Commercial and Investment Bank revenue advanced 14% year over year to $22.7 billion, while Asset and Wealth Management revenue grew 14% to $6.9 billion. Expenses rose 12% to $27.3 billion.

The combination of the fixed income shortfall, sequential softening in dealmaking and the securities loss produced the bank’s first earnings miss relative to consensus in nearly three years, even as overall profitability and several core businesses continued to expand.