Entering Earnings Season: JPM, BAC, MS, and More

Quarterly Earnings Season Approaches: Initial Insights

With the start of 2026, the fourth quarter earnings season is on the verge of commencing, led by major banks. Industry leaders such as JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Citigroup will provide investors with important data based on their performance in the last quarter of 2025.

Strength of the US Economy

Recent data shows that the US economy is on solid ground. According to the non-farm payroll report released on Friday, the unemployment rate has decreased from 4.6% to 4.4%. Additionally, the Institute for Supply Management's reports indicate that the services purchasing managers index is performing above expectations.

Big Tech and Banking Expectations

Wall Street expects JPMorgan to exceed fourth quarter profit estimates along with strong trading revenues. R. Scott Siefers from Piper Sandler emphasized that despite the cost pressures JPMorgan has faced in the past, the bank has been generating strong earnings. According to Bespoke Investment Group's data, JPMorgan's profit expectations have the potential to exceed by 82%.

Delta Air Lines and Bank of America

Delta Air Lines may experience significant annual profit declines according to analysts' forecasts ahead of earnings. However, Deutsche Bank analysts argue that the airline's profits are sustainable and have raised their price target to $85. Bank of America is expected to show over a 16% profit increase in its fourth quarter earnings, supported by a 40% rise in investment banking revenues.

Citigroup and Morgan Stanley Results

Citigroup's fourth quarter forecasts indicate a growth of over 24% year-on-year. Morgan Stanley’s profit is expected to increase by 9%. Steven Chubak from Wolfe Research describes the company as the best choice thanks to the strong fundamentals of investment banking.

Keep an Eye on Goldman Sachs!

Goldman Sachs has a history of surpassing earnings expectations for nine consecutive quarters. However, the LSEG consensus anticipates a slight profit decline in the fourth quarter. Mike Mayo from Wells Fargo highlights volatility in equity and debt capital markets as factors negatively affecting profit forecasts.