JPMorgan once again showed why it is the king of Wall Street
The largest US bank earned net $15.3 billion in the third quarter of 2026, or $5.57 per share. A year ago it was $14.4 billion and $5.07 per share. Earnings per share thus rose about 10% year-on-year.
Managed revenue reached $50.9 billion, reported $50.2 billion. These two divisions led the way:
- Markets (equities and fixed income trading): +15% year-on-year
- Investment banking fees: +14% year-on-year
Capital markets are alive. Companies are again issuing stocks and bonds, merging and buying competitors, and investors are actively trading. JPMorgan takes its cut from every such transaction.
But I mainly look at where that profit came from. A large part of the beat comes from these volatile segments, not from traditional lending. Trading and deal revenues are great while the market is rising. But once market sentiment turns, they can fall quickly. The number itself looks stronger than how stable the profit actually is.
I consider JPMorgan one of the highest-quality banks in the world and would like to have it in my portfolio. But not at any price. I would like to buy the shares around $300-310 each. I could have had them at that price in May, but I hesitated and the market didn't wait for me. I won't chase them now. If the price returns to that level, I'll be ready to buy.