JPMorgan Posts a Rare Profit Miss While Morgan Stanley Sets a Revenue Record

Big bank earnings kicked off the third-quarter reporting season the week of Oct. 13, 2026, and the results were far from uniform.

JPMorgan's rare miss

JPMorgan Chase, the largest U.S. bank, reported third-quarter profit of $15.31 billion, or $5.57 a share, on revenue of $50.17 billion, according to MarketWatch. Analysts had expected $5.93 a share and $51.23 billion in revenue. It was the bank's first profit miss since the fourth quarter of 2023.

Two things weighed on the results: a $658 million loss on investment securities and slower activity in trading and investment banking.

$15 billion in quarterly profit is still enormous. But for a bank known for beating expectations, a miss stands out to investors.

Morgan Stanley and Goldman shine

Morgan Stanley, reporting on Oct. 14, posted record net revenue of $20.3 billion, up from $18.2 billion a year earlier. Earnings were $3.03 a share, and its return on tangible common equity, a key profitability measure, was 22.6%. Its wealth management business brought in $232 billion in net new client assets.

Goldman Sachs posted its second-best revenue quarter ever, led by equities trading, according to MarketWatch.

Dealmaking stalled

One theme across the industry was a slowdown in deals. Reuters reported that rising Treasury yields and jitters over AI stock valuations led companies to delay IPOs and mergers. Fewer deals means fewer advisory fees for investment banks.

Across six major banks, combined third-quarter profit came to roughly $43.6 billion, according to an analysis by IndMoney.

What it means for you

For bank customers, these results don't change much day to day. Big banks remain highly profitable and well capitalized.

For investors, the split is a reminder that "bank stocks" aren't one thing:

• Banks focused on lending and deposits are more affected by interest rates and loan losses.
• Banks with big trading and wealth businesses benefit from active markets and rising asset values.
• Investment banking revenue rises and falls with the deal market, which can change quickly.

If you own a financial-sector fund, you hold a mix of all three, which helps smooth out these differences.

How big banks actually make money

It helps to remember that a bank like JPMorgan, Morgan Stanley or Goldman Sachs isn't one business, but several bundled together. Commercial and consumer banking earns money mainly from the spread between what banks pay depositors and what they charge borrowers. Trading desks earn commissions and spreads from buying and selling stocks, bonds and other securities for clients. Investment banking divisions earn advisory and underwriting fees for helping companies raise money, go public or merge. Wealth and asset management divisions earn fees based on the size of client portfolios.

Because these business lines respond differently to the same economic conditions, a quarter can look very different across banks even when they're all operating in the same environment. That's exactly what happened in the third quarter of 2026: JPMorgan's heavier reliance on lending and its securities loss dragged on results, while Morgan Stanley's and Goldman's trading and wealth businesses thrived on market volatility.

Why analyst estimates matter

When a company's results are described as a "miss," it means the actual numbers fell short of what Wall Street analysts had forecast, not that the company lost money. Analysts who cover a stock publish estimates for revenue and earnings per share before each earnings report, and the average of those estimates becomes the benchmark investors compare results against. A bank can post a profit of billions of dollars, as JPMorgan did, and still see its stock react negatively if the figure comes in below what was expected, because stock prices often reflect expectations about the future as much as the numbers themselves.

The bottom line

JPMorgan's first profit miss in nearly three years came as dealmaking slowed and a securities loss hit results, while Morgan Stanley and Goldman Sachs rode strong trading and wealth businesses to standout quarters. For long-term investors, the takeaway is to understand what drives each company's profits rather than treating a whole sector the same way.

Sources: https://www.marketwatch.com/story/jpmorgan-goldman-profits-jump-as-banks-kick-off-earnings-804440d3, https://www.indmoney.com/blog/us-stocks/us-bank-earnings-q3-jpm-bac-gs-wfc-citi-blk-ms-stock-earnings-analysis