NEW YORK — JPMorgan Chase & Co. (JPM) officially kicked off the 2026 banking earnings season on Tuesday, reporting a complex fourth-quarter result that highlighted the firm’s immense scale while underscoring the immediate financial toll of its strategic expansion into consumer credit.
While the nation’s largest bank achieved a milestone year with record-breaking annual revenue, its fourth-quarter net income was weighed down by a significant $2.2 billion provision related to its recent acquisition of the Apple Card portfolio from Goldman Sachs. Despite the “miss” on unadjusted headline figures, investors focused on the bank’s underlying strength, sending shares up approximately 1% in early trading.
The Fourth Quarter: By the Numbers
For the quarter ending December 31, 2025, JPMorgan reported net income of $13.0 billion. This figure included the $2.2 billion pre-tax credit loss provision—a standard accounting requirement for taking over a large credit portfolio.
When stripping away these one-time costs, the bank’s performance was notably robust:
- Adjusted Net Income: $14.7 billion.
- Adjusted Earnings Per Share (EPS): $5.23, handily beating the $4.85 consensus estimate from Wall Street analysts.
- Reported EPS: $4.63 (including Apple Card costs).
- Net Revenue: $46.8 billion, a 7% increase year-over-year.
The Apple Card “Hit” and Strategic Pivot
The primary drag on the quarter’s earnings was the finalization of the deal to replace Goldman Sachs as the issuer of the Apple Card. Announced just last week, the transition involves JPMorgan taking over an estimated $20 billion in card balances.
While the $2.2 billion provision for credit losses impacted the Q4 bottom line, analysts view the move as a long-term victory for CEO Jamie Dimon. The deal solidifies Chase’s position as the dominant force in the U.S. credit card market, adding millions of high-spending, tech-savvy users to its ecosystem. The transition period for users is expected to span approximately 24 months, with no immediate changes to features or benefits for cardholders.
Jamie Dimon’s Warning: “Underappreciated Hazards”
While the bank’s internal metrics showed resilience, Chairman and CEO Jamie Dimon used the earnings statement to deliver a characteristically blunt warning about the global macro-economic environment.
Dimon noted that while the U.S. economy remains “resilient,” with healthy consumer spending and business activity, he cautioned that financial markets might be overly optimistic.
“Markets seem to underappreciate the potential hazards—including from complex geopolitical conditions, the risk of sticky inflation, and elevated asset prices,” Dimon stated.
His comments suggest that while JPMorgan is thriving, the “soft landing” narrative embraced by many investors may be premature. Dimon pointed to global remilitarization, fiscal deficits, and the shifting landscape of international trade as “known unknowns” that could trigger volatility in late 2026.
2025: A Year of Records and Dominance
Looking at the full-year 2025 results, JPMorgan demonstrated why it remains the undisputed “fortress” of Wall Street:
- Full-Year Net Revenue: $182 billion, the highest in the bank’s history.
- Full-Year Net Income: $57 billion, the second-best year on record (down slightly from 2024, which benefited from a one-time Visa share gain).
- Investment Banking Revenue: The firm marked its 13th consecutive year at number one globally, per Dealogic.
The bank’s Commercial & Investment Bank (CIB) segment saw a 15% surge in trading revenue across equities and fixed income, offsetting a slight 4% dip in dealmaking fees. Notable 2025 successes included leading the $55 billion take-private of Electronic Arts and acting as the lead bookrunner for Medline’s historic IPO.
Sector Performance Highlights
| Business Segment | Revenue Change (Q4 YoY) | Key Driver |
| Consumer Banking | +7% | Higher revolving credit card balances and deposit growth. |
| Wall Street Trading | +15% | Volatility in equities, currencies, and commodities. |
| Investment Banking Fees | -4% | Lower fees in bond and equity underwriting. |
| Payments | +13% | Record $5.1 billion in revenue; transaction volume growth. |
Looking Ahead to 2026
JPMorgan’s results set a high bar for competitors like Bank of America and Citigroup, who report later this week. The bank remains focused on its “fortress balance sheet” while integrating the Apple Card portfolio and investing heavily in AI-driven governance and blockchain-based payments (JPM Coin).
However, the shadow of Dimon’s warning looms large. With inflation proving “sticky” and geopolitical tensions rising, the bank’s strategy for 2026 appears to be one of cautious expansion—capitalizing on growth while preparing for a potential market correction that the CEO believes the rest of the world is ignoring.