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Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Citigroup
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For Immediate Release
Chicago, IL – January 22, 2026 – Zacks Director of Research Sheraz Mian says, "For the Finance sector, we now have Q4 results from 42.8% of the sector’s market capitalization in the S&P 500 index. Total earnings for these companies are up +13.9% from the same period last year on +7.0% higher revenues."
Earnings Estimates Keep Increasing: A Closer Look
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The Q4 earnings season is off to a solid start, with the growth pace accelerating and most management teams painting a stable-to-positive outlook for their businesses. Companies are comfortably beating consensus estimates, with the Q4 EPS and revenue beats percentages tracking above historical averages.
Favorable management commentary is helping estimates for 2026 Q1 and beyond to go up. This positive revisions trend is particularly notable for the Finance sector at this stage, but estimates are also trending higher for the Tech, Retail, Construction, and Transportation sectors.
Total earnings for the 51 S&P 500 members that have reported Q4 results are up +17.2% from the same period last year on +7.5% higher revenues, with 88.2% beating EPS estimates and 72.5% beating revenue estimates.
For the Finance sector, we now have Q4 results from 42.8% of the sector’s market capitalization in the S&P 500 index. Total earnings for these companies are up +13.9% from the same period last year on +7.0% higher revenues, with 90.5% of the companies beating EPS estimates and 71.4% beating revenue estimates.
Finance Sector Earnings Estimates Rise
The market’s reaction to results from JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and others suggests a disappointing performance from these banking leaders. We don’t think the banks’ Q4 results or comments about the outlook are negative and see these stocks’ post-release weakness in a ‘sell-the-news’ type of framework, particularly after their recent outperformance.
Citigroup shares have been particularly hot over the past year, outperforming its peers and the broader market as investors gain more confidence in the new management team’s restructuring and repositioning plans. Market participants had been justifiably skeptical earlier, as Citigroup appeared unable to turn its fortunes around over the years. Unlike Citigroup, JPMorgan shares benefited from its reputation for operating excellence and industry leadership.
We should keep in mind, however, that Citi, Bank of America, and JPMorgan shares had been losing ground since the start of the New Year, with the Q4 earnings results adding to the downtrend.
Management teams’ macroeconomic commentary has been reassuring, with favorable consumer spending and stable credit quality trends. The outlook for loan demand and investment banking advisory services remains positive, even though growth has longer to arrive as a result of policy uncertainty like tariffs and the Fed. Headlines about the administration’s credit card plans remain headwinds, but the overall outlook remains positive.
Management teams’ outlook of stable-to-positive business trends is starting to show up in the group’s revisions trend, with estimates for the current period (2026 Q1) going up.
The Earnings Big Picture
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36% of the index’s total earnings over the coming four-quarter period and currently accounts for 42.5% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members enjoy a strong market following and support.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Citigroup
For Immediate Release
Chicago, IL – January 22, 2026 – Zacks Director of Research Sheraz Mian says, "For the Finance sector, we now have Q4 results from 42.8% of the sector’s market capitalization in the S&P 500 index. Total earnings for these companies are up +13.9% from the same period last year on +7.0% higher revenues."
Earnings Estimates Keep Increasing: A Closer Look
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Finance Sector Earnings Estimates Rise
The market’s reaction to results from JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and others suggests a disappointing performance from these banking leaders. We don’t think the banks’ Q4 results or comments about the outlook are negative and see these stocks’ post-release weakness in a ‘sell-the-news’ type of framework, particularly after their recent outperformance.
Citigroup shares have been particularly hot over the past year, outperforming its peers and the broader market as investors gain more confidence in the new management team’s restructuring and repositioning plans. Market participants had been justifiably skeptical earlier, as Citigroup appeared unable to turn its fortunes around over the years. Unlike Citigroup, JPMorgan shares benefited from its reputation for operating excellence and industry leadership.
We should keep in mind, however, that Citi, Bank of America, and JPMorgan shares had been losing ground since the start of the New Year, with the Q4 earnings results adding to the downtrend.
Management teams’ macroeconomic commentary has been reassuring, with favorable consumer spending and stable credit quality trends. The outlook for loan demand and investment banking advisory services remains positive, even though growth has longer to arrive as a result of policy uncertainty like tariffs and the Fed. Headlines about the administration’s credit card plans remain headwinds, but the overall outlook remains positive.
Management teams’ outlook of stable-to-positive business trends is starting to show up in the group’s revisions trend, with estimates for the current period (2026 Q1) going up.
The Earnings Big Picture
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36% of the index’s total earnings over the coming four-quarter period and currently accounts for 42.5% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members enjoy a strong market following and support.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.