JPMorgan Earnings Miss Forecasts Amid Apple Card Costs

Jan 14, 2026, 2:54 AM

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JPMorgan Chase (JPM) reported a fourth-quarter profit of $13 billion on Tuesday, falling short of Wall Street expectations primarily due to a one-time $2.2 billion charge associated with its acquisition of the Apple Card portfolio from Goldman Sachs. The earnings per share, including this charge, came in at $4.63, compared to the anticipated $4.85. Excluding the costs, the earnings per share would have been $5.23, which still exceeded analyst forecasts.

The bank's stock experienced a decline of nearly 4% following the earnings announcement, reflecting investor concerns over the impact of the Apple Card deal. Despite this setback, JPMorgan's revenue for the quarter reached $46.8 billion, surpassing expectations of $46.2 billion, driven by strong performance in trading and wealth management.

CEO Jamie Dimon expressed optimism about the resilience of the US economy, noting that consumer spending remains robust and businesses are generally healthy. However, he cautioned that markets may be underappreciating potential risks, including complex geopolitical conditions, persistent inflation, and elevated asset prices.

In terms of revenue breakdown, JPMorgan's net interest income rose 7% to $25 billion in the final quarter of 2025, bolstered by increased deposits and card spending. The bank's core Wall Street revenues from equities, fixed income, currency, and commodity trading also rose 15% from the previous year, exceeding analyst expectations.

Despite the overall positive revenue growth, dealmaking revenue fell by 4% compared to the previous year, missing expectations due to lower fees in merger advisory and underwriting services. CFO Jeremy Barnum indicated that the timing of some deals being pushed to 2026 contributed to this weaker performance.

For the full year of 2025, JPMorgan reported a net income of $57 billion, a 2% decline from the previous year, but its annual net revenue climbed to a record $182 billion. The bank's investment banking fees rose 8% for the year, totaling $9.6 billion, while client trading also increased by 8% to $30 billion.

Looking ahead, JPMorgan projects a net interest income of $95 billion for 2026, which is approximately $3 billion higher than previous estimates. This optimistic outlook comes despite the recent challenges posed by President Trump's call for major credit card issuers to cap interest rates, which has created uncertainty in the market.

As the largest bank in the United States, JPMorgan's earnings provide a crucial insight into the health of the banking sector and consumer behavior as the economy navigates through various challenges. Other major banks, including Bank of America, Citigroup, and Wells Fargo, are expected to report their results soon, which will further illuminate the financial landscape.

In summary, while JPMorgan Chase's earnings reflect a strong overall performance for 2025, the impact of the Apple Card acquisition and external market pressures have raised concerns among investors and analysts alike.

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