Goldman Sachs and Morgan Stanley beat forecasts in the third quarter on a surge in equities trading, while JPMorgan missed estimates for the first time in 17 quarters and Bank of America fell short, in a split earnings season for the big banks.
The largest US banks reported mixed third-quarter results on 13 and 14 October 2026, with trading-led firms such as Goldman Sachs and Morgan Stanley beating forecasts and JPMorgan Chase, the largest US bank, missing for the first time in 17 quarters, according to coverage by CNBC and others.
Goldman Sachs reported net earnings of $5.29 billion and net revenue of $18.68 billion for the quarter ended 30 September, according to its filing with the Securities and Exchange Commission, with diluted earnings per share of $17.01. Analysts had expected earnings of $13.50 a share and revenue of $16.4 billion, according to a search summary, so the bank beat on both by a wide margin, driven by strong equities trading.
Morgan Stanley earned $3.03 a share against an expected $2.91, on revenue of $20.34 billion against $19.95 billion, according to the summary of CNBC’s report. Profit rose 6.5% to $4.91 billion and revenue rose 12%, and its equities trading division reported a 41% increase in revenue to $5.8 billion, about $909 million above expectations.
JPMorgan Chase reported profit of $15.3 billion, or $5.57 a share, against analysts’ forecasts of $5.85 to $5.90 a share. Net income rose 6% and revenue rose 8% to $50.2 billion, according to the summaries, but fixed-income trading revenue fell 4% to $5.4 billion, about $550 million below expectations. The bank also took $658 million of securities losses amid a rout in the bond market, and its costs grew 12% against revenue growth of 8%.
Excluding the securities losses, JPMorgan’s earnings per share would have been $5.75, still below the $5.90 estimate, according to one analysis. Chief executive Jamie Dimon said that trading and investment banking activity moderated somewhat during the quarter, and a Benzinga headline says that he sounded an alarm on inflation, rising rates and economic risks, though the full comments were not reviewed.
Bank of America reported net income of $6.93 billion, or $0.91 a share, against an expected $1.10, according to the summary of a CNBC report, but earned $1.08 a share excluding a regulatory penalty. Revenue rose 3% to $30 billion against expectations of about $30.6 billion. Its shares fell on 14 October, according to Yahoo Finance.
Wells Fargo earned $1.87 a share against an expected $1.85 but reported revenue of $21.87 billion against $22.3 billion expected, according to the summary. Citigroup earned $2.85 a share against $2.66 expected on revenue of $23.85 billion against $23.72 billion. Wells Fargo’s wealth and investment management revenue grew 12%.
The split reflects the market conditions of the quarter. Banks with large equities trading operations benefited from volatile shares, while those with large fixed-income and securities portfolios were hit by the fall in bond prices, as the 10-year Treasury yield reached 5.19%. A Fortune headline makes the same point, asking what the earnings miss at JPMorgan and Bank of America and the Goldman blowout say about the state of the economy.
The results come as inflation has risen to 3.7% and the Fed is considering another rate increase at its 27 and 28 October meeting, which Delima News covers in separate articles. Higher rates raise banks’ income on loans but reduce the value of their bond holdings, which is the tension that shows in the quarter’s numbers.
Image: Goldman Sachs’ headquarters in New York (file photo). Photo: Wikimedia Commons (public domain)
