It has been about a month since the last earnings report for JPMorgan Chase & Co. (JPM Quick QuoteJPM - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is JPMorgan Chase & Co. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

JPMorgan's Q2 Earnings Beat on Solid Capital Markets & Loans

Solid trading and IB performance and impressive growth in credit card and wholesale loans drove JPMorgan’s second-quarter 2025 adjusted earnings of $4.96 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $4.51.

This excluded the income tax benefit of $774 million. Including this one-time gain, earnings were $5.24 per share.

Behind the Headline Numbers

Markets revenues were impressive and exceeded management's expectations of growth in the mid-to-high single-digit range. The metric soared 15% to $8.9 billion. Specifically, fixed-income markets revenues jumped 14% to $5.7 billion, while equity trading numbers rose 15% to $3.2 billion. Our estimates for fixed-income and equity markets revenues were $5.21 billion and $3.26 billion, respectively.

Further, the IB business performance was far more robust than expected by management. Advisory fees and debt underwriting fees rose 8% and 12%, respectively although equity underwriting fees fell 6%. Overall, total IB fees (in the CIB segment) were up 7% from the prior-year quarter to $2.51 billion. The company had projected IB fees to decline in the mid-teens range during the quarter.

Also, the company recorded an increase in NII, driven by higher yields and 7% year-over-year jump in total loans. Among other positives, CCB average loan balances were up 1% year over year. Also, debit and credit card sales volume increased 7%.

Mortgage fees and related income grew 4% to $363 million. We had projected the metric to be $288.1 million. Also, the company reported a decline in provision for credit losses in the quarter.

During the quarter, adjusted operating expenses rose.

Revenues Dip, Expenses Stable

Net revenues, as reported, were $44.91 billion, down 11% year over year. The top line outpaced the Zacks Consensus Estimate of $43.81 billion. Last year's quarter included one-time Visa share-related gains.

NII rose 2% year over year to $23.21 billion. Our estimate for NII was $22.98 billion.

Non-interest income plunged 21% to $21.7 billion. The second quarter of 2024 included a $7.9 billion net gain related to Visa shares. Excluding this, adjusted non-interest income grew almost 10%. Our estimate for non-interest income was $19.74 billion.

Non-interest expenses (on a managed basis) were $23.78 billion, relatively stable year over year. Excluding the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation in the prior year, adjusted non-interest expense grew 5%. This was mainly due to higher compensation expenses, brokerage expenses and distribution fees and technology expenses. We had projected non-interest expenses to be $23.65 billion.

The performance of JPMorgan’s business segments, in terms of net income generation, was decent. The CIB, AWM and CCB segments witnessed higher net income on a year-over-year basis. On the other hand, the Corporate segment recorded a drop in net income. Overall, net income declined 17% to $15 billion. Excluding non-recurring items, net income was $14.2 billion. We had projected net income to be $12.86 billion.

Credit Quality: A Mixed Bag

Provision for credit losses was $2.85 billion, down 7% from the prior-year quarter. Our estimate for the metric was $3.08 billion.

Net charge-offs (NCOs) grew 8% to $2.41 billion. Also, as of June 30, 2025, non-performing assets (NPAs) were $10.48 billion, surging 24%.

Capital Position Solid

Tier 1 capital ratio (estimated) was 16.1% at the second-quarter end, down from 16.7% in the prior-year quarter. Tier 1 common equity capital ratio (estimated) was 15%, down from 15.3%. Total capital ratio was 17.8% (estimated) compared with 18.5% a year ago.

Book value per share was $122.51 as of June 30, 2025, compared with $111.29 a year ago. Tangible book value per common share was $103.4 at the end of June 2025, up from $92.77.

Update on Share Repurchases

During the reported quarter, JPMorgan repurchased 29.8 million shares for $7.1 billion.

2025 Outlook

Management now projects NII to be approximately $95.5 billion following solid first-half performance and higher yields. Earlier, the company anticipated NII to reach almost $94.5 billion.

JPMorgan expects non-interest expenses to be $95.5 billion. It emphasized the importance of artificial intelligence (AI) in boosting efficiency and noted that its technology budget is $18 billion this year, up roughly 6% from last year. 

Additionally, despite several near-term headwinds, JPMorgan affirmed its card NCO rate at approximately 3.6%. Further, the company guided the 2026 card NCO rate to be between 3.6% and 3.9%.

Management expects average card loan growth to be healthy but below the 2024 level of 12%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, JPMorgan Chase & Co. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise JPMorgan Chase & Co. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.