JPMorgan Shares Dip Despite Strong Q4 Trading-Driven Profits

JPMorgan Chase & Co. reported fourth-quarter earnings that exceeded analyst expectations on January 13, 2026, with adjusted earnings per share of $5.23 versus the $5.00 estimate. The bank’s trading division capitalized on volatile markets in the final quarter of 2025, with markets revenue climbing 17% year-over-year.

Despite the earnings beat and full-year 2025 net income reaching a record $57 billion, JPMorgan shares fell 2.64% to $315.93 as of 9:53 AM EST on the day of the announcement, down from the previous close of $324.46.

Market Volatility Lifts Trading Revenue in Q4

JPMorgan’s fourth-quarter results demonstrated the bank’s ability to capitalize on market turbulence, with total revenue reaching $46.8 billion on a managed basis, up 7% year-over-year. The standout performance came from the Markets division, where revenue surged 17%, driven by a remarkable 40% jump in Equity Markets revenue, particularly in Prime brokerage services. Fixed Income Markets contributed with a 7% increase, benefiting from strong performance in Securitized Products, Rates, and Currencies & Emerging Markets.

CEO Jamie Dimon emphasized the resilience of the U.S. economy in his statement, noting that while labor markets have softened, conditions don’t appear to be worsening. The bank opened 1.7 million net new checking accounts and 10.4 million new credit card accounts during 2025, demonstrating continued franchise growth. However, Dimon also cautioned that markets may be underappreciating potential risks, including complex geopolitical conditions, sticky inflation, and elevated asset prices.

The positive results were partially offset by a $2.2 billion credit reserve established for the forward purchase commitment of the Apple credit card portfolio from Goldman Sachs. This one-time charge reduced reported net income to $13.0 billion ($4.63 per share) for the quarter, though the underlying performance remained strong. Average loans increased 9% year-over-year and 3% quarter-over-quarter, while average deposits grew 6% year-over-year.

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Investors Focus on Valuation and Credit Risks

Despite beating earnings expectations, JPMorgan shares traded down to $315.93, representing a 2.64% decline from the previous close of $324.46. The muted market reaction came after an exceptional 2025 performance, during which the stock surged 34.93% for the year, significantly outperforming the S&P 500’s 19.67% gain. Trading volume reached approximately 1.98 million shares by mid-morning, below the average volume of 8.83 million, suggesting cautious investor sentiment.

Market analysts attributed the stock’s weakness to high expectations following the strong 2025 run-up, with the bank’s valuation reaching a trailing P/E ratio of 16.00 and a market capitalization of $887.8 billion. David Wagner of Aptus Capital Advisors noted that “the bar for perfection is set pretty high” after such a strong year. The stock traded within a day’s range of $321.11 to $326.86, with the 52-week range spanning from $202.16 to $337.25.

Investors appeared focused on several concerns beyond the strong quarterly results, including the potential impact of President Trump’s proposed 10% cap on credit card interest rates, Investment Banking fees declining 5% year-over-year, and questions about sustainability of trading revenues. The bank maintained its fortress balance sheet with a CET1 capital ratio of 14.5% under the Standardized approach and $1.5 trillion in cash and marketable securities, positioning it well for future challenges despite near-term stock price volatility.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.