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Zacks Earnings Trends Highlights: JPMorgan, Citigroup, Bank of America and Wells Fargo
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For Immediate Release
Chicago, IL – October 15, 2026– Zacks Director of Research Sheraz Mian says, "The growth momentum is broad-based, with 14 of the 16 Zacks sectors expected to enjoy positive earnings growth and the outlook steadily improving."
Broad-Based Growth Meets Caution: The Evolving Q3 Earnings Picture
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:
Total Q3 earnings for the 32 S&P 500 members that have reported results already are up +52.5% from the same period last year on +15.8% higher revenues, with 81.3% beating EPS estimates and 71.9% beating revenue estimates.
The EPS and revenue beats percentages at this admittedly early stage in the Q3 reporting cycle are tracking modestly below what we had seen from this same group of companies in other recent periods. The reported earnings and revenue growth rates have been boosted by outsized gains at Micron, with the Q3 growth comparisons tracking modestly unfavorably with other recent periods when the Micron numbers are excluded.
The relatively underwhelming start to the Q3 reporting cycle notwithstanding, the overall setup remains favorable, with earnings growth expected to be in the double digits for the 8th consecutive quarter. The growth momentum is broad-based, with 14 of the 16 Zacks sectors expected to enjoy positive earnings growth and the outlook steadily improving.
Excluding the Tech sector's substantial contribution, Q3 earnings for the rest of the S&P 500 index would be up +14.6% (vs. +24.6% otherwise). Excluding the Energy sector, the aggregate growth rate would decline to +20.3%.
What's Weighing on Bank Stocks After Strong Q3 Results?
Despite headline earnings misses by JPMorgan and Bank of America, Q3 results from these banks and their peers have been very strong, with robust equity trading volumes and accelerating investment banking activities, particularly in equity underwriting and M&A.
Net interest income was up at each of the money-center banks – JPMorgan (JPM - Free Report) , Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) – with NII at JPMorgan up +6% (excluding markets) relative to the same period last year, up +7% at Citigroup, +8% at Bank of America and +5% at Wells Fargo. Other than JPMorgan, whose Q3 NII was modestly down sequentially, the other three banks enjoyed gains relative to the preceding period.
On the trading side, the gains were entirely from the equities markets, while revenues from the fixed income, currencies, and commodities (FICC) business were down across all the banks. Citigroup was the sole exception on the FICC side, with the bank enjoying its best Q3 trading performance in many years.
These results failed to change the banks' negative stock market momentum ahead of these results. You can see this in the performance chart below that shows the performance of JPMorgan, Wells Fargo, Bank of America, and Citigroup shares relative to the S&P 500 index since the end of June.
Market participants are likely weighing future headwinds rather than backward-looking Q3 results in pushing these stocks lower. At the core of their concerns is interest rate volatility, which obscures NII visibility, alongside a potential deceleration in trading revenue from recent cyclical highs. Because NII and capital markets activity drove outsized bank profits over the last four quarters, a plateau in these activities is likely fueling investor caution.
For the Finance sector's Q3 scorecard, we now have results from 33% of the sector's market capitalization in the S&P 500 index. Total earnings for these banks are up +10% from the same period last year on +12.7% higher revenues, with 77.8% beating EPS estimates and 66.7% beating revenue estimates.
For Q3 as a whole, combining actual results with estimates for the remaining stocks, total Finance sector earnings are expected to increase +7.2% from the same period last year, on +7.5% higher revenues.
The Earnings Big Picture
We have been showing here how Q3 estimates moved higher since the quarter got underway.
As is the case with estimates for 2026 Q4, estimates for full-year 2027 are also moving higher.
Since the beginning of July, estimates for 2027 have increased for 10 of the 16 Zacks sectors, with Tech, Energy, Finance and Industrials leading the way.
We will see how this revisions trend evolves as companies report Q3 results and share updates on developments in their businesses.
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.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Earnings Trends Highlights: JPMorgan, Citigroup, Bank of America and Wells Fargo
For Immediate Release
Chicago, IL – October 15, 2026– Zacks Director of Research Sheraz Mian says, "The growth momentum is broad-based, with 14 of the 16 Zacks sectors expected to enjoy positive earnings growth and the outlook steadily improving."
Broad-Based Growth Meets Caution: The Evolving Q3 Earnings Picture
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:
What's Weighing on Bank Stocks After Strong Q3 Results?
Despite headline earnings misses by JPMorgan and Bank of America, Q3 results from these banks and their peers have been very strong, with robust equity trading volumes and accelerating investment banking activities, particularly in equity underwriting and M&A.
Net interest income was up at each of the money-center banks – JPMorgan (JPM - Free Report) , Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) – with NII at JPMorgan up +6% (excluding markets) relative to the same period last year, up +7% at Citigroup, +8% at Bank of America and +5% at Wells Fargo. Other than JPMorgan, whose Q3 NII was modestly down sequentially, the other three banks enjoyed gains relative to the preceding period.
On the trading side, the gains were entirely from the equities markets, while revenues from the fixed income, currencies, and commodities (FICC) business were down across all the banks. Citigroup was the sole exception on the FICC side, with the bank enjoying its best Q3 trading performance in many years.
These results failed to change the banks' negative stock market momentum ahead of these results. You can see this in the performance chart below that shows the performance of JPMorgan, Wells Fargo, Bank of America, and Citigroup shares relative to the S&P 500 index since the end of June.
Market participants are likely weighing future headwinds rather than backward-looking Q3 results in pushing these stocks lower. At the core of their concerns is interest rate volatility, which obscures NII visibility, alongside a potential deceleration in trading revenue from recent cyclical highs. Because NII and capital markets activity drove outsized bank profits over the last four quarters, a plateau in these activities is likely fueling investor caution.
For the Finance sector's Q3 scorecard, we now have results from 33% of the sector's market capitalization in the S&P 500 index. Total earnings for these banks are up +10% from the same period last year on +12.7% higher revenues, with 77.8% beating EPS estimates and 66.7% beating revenue estimates.
For Q3 as a whole, combining actual results with estimates for the remaining stocks, total Finance sector earnings are expected to increase +7.2% from the same period last year, on +7.5% higher revenues.
The Earnings Big Picture
We have been showing here how Q3 estimates moved higher since the quarter got underway.
As is the case with estimates for 2026 Q4, estimates for full-year 2027 are also moving higher.
Since the beginning of July, estimates for 2027 have increased for 10 of the 16 Zacks sectors, with Tech, Energy, Finance and Industrials leading the way.
We will see how this revisions trend evolves as companies report Q3 results and share updates on developments in their businesses.
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/performancefor information about the performance numbers displayed in this press release.