JPMorgan’s Q4 2025 profit dropped 7% to $13B, missing analyst estimates

JPMorgan posted its fourth-quarter results today after the bell and said profit fell 7% in the fourth quarter of 2025, landing at $13 billion, or $4.63 per share, missing FactSet estimates of $4.85 per share.

As of press time, the JPM stock has crashed by 4.15%. Meanwhile, JPMorgan’s quarterly revenue rose 7% to $45.8 billion, though even that still fell short of Wall Street’s $46.2 billion estimate.

For the full year, revenue reached $182.4 billion, up from $177.6 billion in 2024. Full-year profit totaled $57 billion, below the $58.5 billion reported the year before, which remains the highest annual profit ever posted by any U.S. bank, let alone the largest one of them all.

Apple Card takeover weighs on JPMorgan’s Q4 earnings

According to the earnings report, JPMorgan booked an extra $2.2 billion charge related to potential future loan losses tied to roughly $20 billion in Apple credit card balances, which reduced quarterly earnings by 60 cents per share.

JPMorgan also said it missed a forecast it had issued just one month earlier for investment banking fees. Some deals expected to close before the end of the year did not move forward in time. Analysts described the quarter as solid overall despite the earnings pressure, but the stock was still down 2.4% in early Tuesday trading.

Within the commercial and investment banking unit, total quarterly revenue rose 10% to $19.38 billion. Investment banking fees declined to $2.3 billion, down from $2.5 billion a year earlier. The drop came from weaker deal activity, lower debt transactions, and softer equity underwriting.

JPMorgan’s trading revenue climbs as deal activity changes

JPMorgan’s markets division delivered stronger results, with bank trading revenue up by 17% to $8.2 billion in the quarter and stock trading revenue surging by 40%.

At the start of 2025, many Wall Street banks expected a strong rebound in mergers, acquisitions, and capital markets activity, but it didn’t happen until later in the year, though only for large transactions that generate higher fees.

By year-end, 2025 recorded the second-highest merger volume on record. Volatility throughout the year also boosted trading desks, so clients moved out of certain sectors and rotated into assets they viewed as undervalued.

For the full year, investment banking fees totaled $9.7 billion, up from $9.1 billion the prior year. Full-year trading revenue rose 19% to $35.8 billion.

JPMorgan’s net charge-offs in the fourth quarter were $2.5 billion, compared with $2.4 billion a year earlier, signaling mild credit deterioration.

Consumer activity stayed firm, as JPMorgan’s total debit and credit card spending increased 7% versus 2024. The rate of credit card balances delinquent by more than 90 days declined to 1.10%, down from 1.14% a year earlier.

JPMorgan CEO Jamie Dimon said in the earnings call event:- “Consumers have money, there’s still jobs even though it’s weakened a little bit thanks to geopolitical risks. But we deal with the world we got, not the world we want.”

JPMorgan’s CFO, Jeremy Barnum, also indicated the banking industry could push back against President Trump’s proposed one-year 10% cap on credit card interest rates.

Goldman Sachs shares fell 1%, Visa and Mastercard dropped roughly 4% each, while banking ETFs XLF and KBWB crashed alongside.

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