JPMorgan Chase (NYSE: JPM) reported third-quarter 2026 earnings per share of 5.75 on Oct. 13, 2026, below the analyst estimate of 5.93, and revenue of $50.17B, also below the $51.23B estimate. Profit still grew from a year earlier, so the story is a modest miss on a bank whose results were strong in the prior quarter. This article looks at one question: how much does a small miss matter for a stock that already trades at a premium to its large-bank peers?
Figures are current as of Oct. 30, 2026 (latest quote) and cover the quarter ended Sept. 30, 2026, unless stated otherwise.
Key facts
- Oct. 13, 2026: JPMorgan reported EPS of 5.75 against an estimate of 5.93, a shortfall of $0.18 per share, or 3.0%.
- Oct. 13, 2026: Reported revenue was $50.17B against an estimate of $51.23B, a shortfall of $1.06B, or 2.1%.
- Quarter ended Sept. 30, 2026: Net income was $15.30B, up 6.3% from the year-ago quarter, and operating income was $20.13B.
- Oct. 30, 2026: The share price was 337.04 USD on the latest quote, a decline of 1.90%. The 52-week range is 279.1 to 366.5 USD. Market cap is $895.92B.
- Jan. 14, 2027: Next earnings date, with an EPS estimate of 5.9 and a revenue estimate of $51.13B.
A note on the two revenue figures: our data shows $50.17B as the reported revenue used for the estimate comparison, and $76.19B on the income statement. Banks can present revenue before or after interest expense, so the gap likely reflects different definitions, though the evidence does not explain it. We label each one and compare each only with its own benchmark. On the income-statement basis, revenue rose 6.0% from the year-ago quarter.
The same applies to EPS: reported EPS of 5.75 and income-statement diluted EPS of 5.57 are separate data points, and the evidence gives no reason for the gap between them.
What happened
JPMorgan filed its third-quarter 2026 results on Oct. 13, 2026. Earnings per share (profit divided by shares outstanding) of 5.75 fell short of the 5.93 analysts expected. Revenue also came in under the estimate.
The miss was small, and the year-over-year picture was still positive. Net income of $15.30B was higher than the $14.39B a year earlier, and diluted EPS on the income statement of 5.57 was higher than the 5.07 a year earlier.
The bigger change was against the prior quarter. In the quarter ended June 30, 2026, income-statement revenue was $82.46B and net income was $21.16B. Revenue and net income in the third quarter were both lower than in that prior quarter.
The margin trend shows the same pattern. Operating margin (operating income as a share of revenue) across recent quarters:
| Quarter ended | Revenue | Operating margin | Net income | |---|---|---|---| | Sept. 30, 2025 | $71.90B | 26.1% | $14.39B | | Dec. 31, 2025 | $69.61B | 24.7% | $13.03B | | March 31, 2026 | $73.66B | 27.8% | $16.49B | | June 30, 2026 | $82.46B | 33.4% | $21.16B | | Sept. 30, 2026 | $76.19B | 26.4% | $15.30B |
This table shows that the June 2026 quarter was the outlier. The September 2026 operating margin of 26.4% is close to the 26.1% of a year earlier. Gross margin was 62.2%, down from 66.5% in the quarter ended June 30, 2026. So the third quarter may be a return to a more normal level rather than a sudden deterioration, though the drivers of the June-quarter jump are not in our evidence.
We did not have the earnings call transcript or a company release for this article, so we cannot quote management on the drivers. A Zacks headline on Oct. 30, 2026 said JPMorgan raised its outlook for net interest income. That is the gap between what a bank earns on loans and pays on deposits. We have not verified the details, and the article is not a source for any number here.
For business lines, the latest segment data we have is for the quarter ended Dec. 31, 2025. Consumer & Community Banking revenue was $19.40B, up from $18.36B in the year-ago quarter. Asset and Wealth Management revenue was $6.52B, up from $5.78B. Commercial And Investment Bank revenue was $19.38B, so the two largest segments were about the same size.
Cash flow is not a useful lens for a bank. Operating cash flow swings widely because of deposits, loans and trading balances. It was $119.72B in the quarter ended Dec. 31, 2025, and an outflow of $211.76B in the quarter ended March 31, 2026. The data feed shows $0.00 for the latest quarter, which looks like missing data and not a real zero. Dividends were $4.34B and buybacks were $6.79B in the quarter ended June 30, 2026.
Why it matters for investors
Valuation is above peers. JPMorgan's trailing 12-month price-to-earnings ratio (share price divided by the last year of earnings per share) is 14.11. Peers in the same data set:
| Company | P/E (trailing 12 months) | Net margin | Market cap | |---|---|---|---| | JPMorgan (JPM) | 14.11 | 21.9% | $895.92B | | Bank of America (BAC) | 11.74 | 16.5% | $346.20B | | Citigroup (C) | 11.75 | 11.0% | $205.72B | | Goldman Sachs (GS) | 12.70 | 18.0% | $260.47B | | HSBC (HSBC) | 11.04 | 19.9% | $292.73B |
JPMorgan has the highest net margin of the group and the highest P/E. Investors are paying more for each dollar of earnings, and in exchange they get higher profitability. A miss matters more when a stock already carries that premium.
Analysts remain constructive. Of 61 ratings, 1 is strong buy, 31 are buy, 27 are hold and 2 are sell, for a consensus of Buy. The average price target is 373.36 USD and the median is 375.00 USD, within a range of 312.00 to 425.00 USD. The share price of 337.04 USD as of Oct. 30, 2026 sits below the average target. After the results, Citigroup, Truist, Baird and Morgan Stanley kept neutral-type ratings, while RBC Capital and Barclays kept positive ones. No firm in the list changed its rating.
Our MoonshotScore is weak. Stock Expert AI's MoonshotScore V2 for JPM is 34.5, labeled Weak. The pillars, measured against the sector, are growth 57, momentum 67, quality 60, safety 22 and valuation 19. Growth, momentum and quality are middling to decent. Safety and valuation are the weak spots. This is our own scoring and not a prediction.
What could go wrong
- Valuation. A P/E of 14.11 is above all four peers listed. FMP's discounted cash flow model gives a value of 699.32 USD per share, but model values for banks are unreliable because bank cash flows are distorted. Treat that number cautiously. The price-to-free-cash-flow reading is -7.64 for the same reason.
- Balance sheet metrics. As of Sept. 30, 2026, total debt was $1.23T, net debt was $908.62B and shareholders' equity was $372.37B. FMP's trailing 12-month debt/equity ratio is 3.32. Bank debt includes funding that is not comparable to a factory's borrowing. The Altman Z score is 0.20 and the Piotroski score is 5 (on a 0-9 scale); the safety pillar is 22.
- Earnings volatility. The jump in the quarter ended June 30, 2026 and the drop after it show how uneven bank results can be.
- Insiders. Among the 30 most recent insider filings, those in the last 90 days show 0 open-market purchases and 2 sales. Older filings may be missing, so this is a weak signal.
What to watch next
- Jan. 14, 2027: the next earnings report. Analysts expect EPS of 5.9 and revenue of $51.13B.
- Operating margin. Does it stay near the 26.4% of the latest quarter or move back toward the 33.4% of the quarter ended June 30, 2026?
- Net interest income outlook. Whether the raised outlook reported in headlines holds up.
- Longer-dated estimates. For the period ending March 30, 2028, 4 analysts expect EPS of 6.85 and revenue of $57.40B. For the period ending June 30, 2028, they expect EPS of 6.72 and revenue of $56.89B. These far-out estimates rest on few analysts and are likely to change.
- Peer comparison. Whether JPMorgan's premium to the peers' P/E ratios holds.
Frequently asked questions
Q: Did JPMorgan beat or miss earnings in the third quarter of 2026?
JPMorgan missed analyst estimates for the quarter ended Sept. 30, 2026. EPS was 5.75 against an estimate of 5.93, and revenue was $50.17B against an estimate of $51.23B. Net income of $15.30B was still higher than a year earlier.
Q: Is JPMorgan stock expensive compared with other big banks?
On trailing 12-month P/E, JPMorgan is higher than the peers we track. Its P/E is 14.11, against 11.74 for Bank of America, 11.75 for Citigroup, 12.70 for Goldman Sachs and 11.04 for HSBC. It also has the highest net margin of the group at 21.9%. Our MoonshotScore valuation pillar is 19, which is low relative to the sector.
Q: What do analysts expect for JPMorgan's stock price?
Analysts' average price target is 373.36 USD, with a range of 312.00 to 425.00 USD, against a share price of 337.04 USD as of Oct. 30, 2026. The consensus rating is Buy across 61 ratings. These are analyst views, not our forecast, and not advice.
Sources: Stock Expert AI market data and MoonshotScore (our own); financial statements, estimates, ratings and price targets via Financial Modeling Prep; headlines from third-party outlets used for context only.
This is educational content, not investment advice. Past performance does not guarantee future results.