Excluding a $658 million securities loss, JPMorgan's EPS matches one consensus and trails another
JPMorgan reported third-quarter EPS of $5.57 and said it would have been $5.75 without a $658 million securities loss. Quartz cites a Bloomberg consensus of $5.75 and Yahoo Finance $5.90, so the loss explains the miss in full or only in part.
The Investor · Invest desk
Key figures: JPMorgan's third-quarter EPS excluding the securities loss was $5.75, the company said. Analysts expected $5.75 per Bloomberg and $5.90 per Yahoo Finance. Reported EPS was $5.57.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Q3 EPS excluding the securities loss, per company | $5.75 per share | 1 | |
| Forecast, per Bloomberg | $5.75 per share | 26 | |
| Yahoo Finance forecast | $5.9 per share | 27 | |
| Reported Q3 EPS | $5.57 per share | 5 |
What happened
- Net income rose 6% from $14.4 billion in the third quarter of 2025, and earnings per share rose from $5.07.
- Equity markets revenue rose 49% to $4.95 billion, the strongest third quarter that business has had, according to Bloomberg.
- Total expenses were $27.3 billion, up 12% and ahead of what analysts had projected, Bloomberg reported.
Why it matters
- Who has to decide decision Analysts building next-quarter models must pick $5.57 or $5.75 as the base, a 3.2% difference, and the higher number holds only if the securities loss does not recur.
- What it costs cost Shareholders pay for the 12% expense growth in operating leverage: about 77 cents of each added revenue dollar went to costs, against an average cost ratio near 54%, and net income grew 6%.
- Who's exposed exposure Equities is about 48% of markets revenue, so next year's comparison for that line starts from a third-quarter record.
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Start with the consensus, because the claim that one item caused the miss depends on it. Quartz attributes its $5.75 expectation to Bloomberg [26]. Yahoo Finance gives $5.90 as the analyst forecast [27]. Against the first the miss is $0.18, all of it the loss [23]; against the second it is $0.33 as reported and still $0.15 after the add-back [24][25]. Premarket trading settled nothing: the stock fell 3% at first, then ticked up 1%, Yahoo reported [28].
Total markets revenue rose 15% to $10.3 billion against the $10.5 billion Bloomberg expected [2], a shortfall of $0.2 billion, or 1.9% [13]. Inside it, equity markets revenue of $4.95 billion, up 49% [4], implies about $3.32 billion a year earlier and a gain of roughly $1.63 billion, or rather something near that, since both percentages are rounded [14]. The total implies about $8.96 billion a year earlier and a gain of about $1.34 billion [15]. If equities and fixed income make up the total, fixed income fell by about $0.3 billion [16], close to the 4% decline Bloomberg reports [3].
One fixed-income decline, the first in over two years [3], fits two readings. In the first, the second quarter was the outlier: Yahoo calls it a standout, and both trading and dealmaking revenue fell from it [9]. In the second, the business has stopped growing and this is the start of a run. We lean to the first, but one quarter cannot separate them, and a second year-on-year decline next quarter would settle it against us.
Expenses are the less comfortable line. At $27.3 billion they came in ahead of analyst projections, Bloomberg reported [8]. At the $5.75 consensus, adjusted EPS still landed on the forecast [26][1], so by subtraction something else ran ahead of analysts. At $5.90, the $0.15 left after the add-back is at least consistent with the expense overshoot [25].
Jamie Dimon said in a statement that "large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface" [10]. "These forces may be manageable, but we remain prepared for a wide range of outcomes," Dimon said [11]. Elevated asset prices are on that list, and in our view the quarter's strongest line, equity markets [4], is the one most tied to them. The counter-thesis is that clients are still adding money: Dimon highlighted $263 billion of net inflows in Asset & Wealth Management [29], where assets under management reached $5.2 trillion, up 13% [12].
What to watch
- Whether the other large banks report fixed-income revenue down year on year, which would show whether JPMorgan's decline is its own or the sector's.
- Any detail from JPMorgan on whether the 12% expense growth recurs or reflects one-time items.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence78
- Adoption
- Not scored
- Hype gap+12
- Incentives35
- Confidence72
Perspective Coverage
11 publishers- Builder
- Builder 11%
- Operator
- Operator 27%
- Investor
- Investor 62%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
The reported figure was dragged down by $658 million of net investment securities losses; excluding that item, earnings per share would have been $5.75, the company said.
- [2]
Total markets revenue rose 15% to $10.3 billion, while analysts had expected $10.5 billion, according to Bloomberg.
- [3]
Fixed-income trading revenue dropped 4% year over year, the first time that business had declined in over two years, according to Bloomberg.
- [4]
Equity markets revenue surged 49% to $4.95 billion, the strongest third-quarter performance that business has ever produced, according to Bloomberg.
- [5]
JPMorgan Chase reported third-quarter net income of $15.3 billion, or $5.57 per share.
- [6]
Net income rose 6% from $14.4 billion, or $5.07 per share, in the third quarter of 2025.
- [7]
Net revenue rose 8% to $50.2 billion compared to $46.4 billion in the third quarter of last year.
- [8]
Total quarterly expenses reached $27.3 billion, climbing 12% and coming in ahead of what analysts had projected, according to Bloomberg.
- [9]
Revenues from trading and from dealmaking both fell from the previous quarter, after a standout second quarter.
- [10]
large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface
- [11]
These forces may be manageable, but we remain prepared for a wide range of outcomes
- [12]
Asset & Wealth Management had assets under management of $5.2 trillion, up 13%.
- [13]
Total markets revenue missed the $10.5 billion expectation by $0.2 billion, or about 1.9%.
- [14]
Equity markets revenue a year earlier was about $3.32 billion, implying a gain of roughly $1.63 billion.
- [15]
Total markets revenue a year earlier was about $8.96 billion, implying a gain of about $1.34 billion.
- [16]
If total markets is the sum of equities and fixed income, the non-equity remainder fell by about $0.3 billion year over year.
- [17]
The $0.18 per-share difference between adjusted and reported EPS is about 3.2% of the reported figure.
- [18]
Equity markets revenue is about 48% of total markets revenue.
- [19]
Expenses rose by about $2.9 billion year over year.
- [20]
Net revenue rose by $3.8 billion year over year.
- [21]
About 77 cents of each added revenue dollar went to added expenses.
- [22]
Expenses were about 54% of net revenue.
- [23]
Against a $5.75 consensus, the miss is $0.18 per share, the same as the gap between $5.57 reported and $5.75 ex-loss.
- [24]
Against a $5.90 consensus, the reported miss is $0.33 per share.
- [25]
Against a $5.90 consensus, EPS excluding the securities loss is still $0.15 short.
- [26]
Analysts had expected $5.75 per share, according to Bloomberg.
- [27]
Profit of $15.3 billion, or $5.57 per share, fell short of the $5.90 per share that analysts forecast; net revenue rose 8% to $50.2 billion from $46.4 billion a year earlier.
- [28]
JPMorgan stock ticked up 1% in pre-market trading after initially falling 3%.
- [29]
Dimon highlighted $263 billion of client asset net inflows in Asset & Wealth Management.
Sources
11 independent publishers whose own reporting we read for this story.
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Topics and entities
Topics
- Wall Street trading revenue
- Adjusted earnings per share
- Bank earnings