JPMorgan Q3 2026: $15.3B profit, net buybacks cut to $664M, CET1 13.9%

JPMorgan Chase reported $5.1 trillion of total assets at September 30. In the third quarter of 2026 it earned $15.3 billion, or $5.57 per diluted share, on reported revenue of $50.2 billion. Every operating segment grew its profit from a year earlier.

The more informative line sits further down the release: the bank bought back only $664 million of its own stock net of employee issuance, its main capital ratio fell three-tenths of a point in a quarter, and chairman and chief executive Jamie Dimon said in the release that the reduction followed a capital hierarchy that puts investing in the franchise first. Bank-specific terms are defined as they come up.

JPMorgan Q3 2026 results at a glance

	3Q26	2Q26	3Q25
Net revenue — reported	$50,172M	$57,347M	$46,427M
Net revenue — managed	$50,907M	$58,022M	$47,120M
Net interest income (managed)	$27,145M	$25,622M	$24,071M
Noninterest revenue (managed)	$23,762M	$32,400M	$23,049M
Noninterest expense	$27,295M	$27,316M	$24,281M
Provision for credit losses	$2,743M	$2,515M	$3,403M
Net charge-offs	$2,204M	$2,366M	$2,593M
Net income	$15,305M	$21,155M	$14,393M
Diluted EPS	$5.57	$7.70	$5.07
ROTCE	20%	29%	20%
Overhead ratio (managed)	54%	47%	52%
CET1 ratio (Standardized)	13.9%	14.2%	14.8%

Managed basis is JPMorgan’s non-GAAP presentation that grosses up revenue from tax-exempt securities and tax-credit investments to a taxable-equivalent amount; it adds $735 million to revenue this quarter and, per the company, has no effect on net income. The overhead ratio is noninterest expense divided by revenue — lower is more efficient.

Against the year-ago quarter, managed revenue rose 8% and net income 6%, while diluted EPS rose 10% because the average diluted share count fell 3%, from 2,767.6 million to 2,683.0 million. Expense grew faster than revenue — up 12%, predominantly on higher compensation, including revenue-related pay and more front-office staff, per the company — so the overhead ratio rose from 52% to 54%.

The sequential column needs a footnote. The second quarter included a $4.6 billion net gain in Corporate on Visa Class C common stock received in an exchange offer, and $1.0 billion of gains on certain equity investments in Corporate and CIB, per the financial supplement. Strip those two items out and second-quarter managed revenue would have been roughly $52.4 billion rather than $58.0 billion (our arithmetic). Most of the $7.1 billion sequential drop in managed revenue reflects those two items, not the business.

For the first nine months of 2026, net income was $52,954 million against $44,023 million a year earlier, up 20%, and diluted EPS was $19.20 against $15.38.

Did JPMorgan Chase issue guidance for Q3 2026?

No. JPMorgan Chase issued no third-quarter revenue or earnings guidance: the outlook in its July 14, 2026 earnings presentation (Form 8-K, Exhibit 99) covered full-year 2026 only, so the quarter is measured against the year-ago quarter, when reported revenue was $46.4 billion and diluted EPS $5.07 — against $50.2 billion (up 8%) and $5.57 (up 10%) now. The full-year outlook moved up in the October presentation: net interest income of about $105.5 billion in July against an implied about $106.2 billion now, NII excluding Markets about $96.5 billion against about $97.2 billion, and adjusted expense about $107.5 billion against about $108.6 billion. The 2026 Card Services NCO rate outlook stayed at about 3.2%.

What was the significant item?

The release flags one significant item: $658 million of net investment securities losses in Corporate, equal to $498 million after tax and a $0.18 reduction in EPS. Excluding it, net income would have been $15.8 billion, EPS $5.75, and ROTCE — return on tangible common equity, which strips goodwill and identifiable intangibles out of the equity base — 21% instead of 20%. These “excluding” figures are non-GAAP measures that JPMorgan itself reports and reconciles in the release.

The release does not identify which securities were sold. Dimon’s quote describes the losses as “discretionary investment securities losses,” which we read as a choice to realize them rather than a credit impairment. This was the second consecutive quarter of such losses: the income statement shows investment securities losses of $395 million in the second quarter as well, though only the third-quarter amount was designated a significant item.

Net interest income and the rate outlook

Net interest income (NII) — interest earned on loans and securities minus interest paid on deposits and borrowings — was $27.1 billion, up 13%. That headline flatters the core lending franchise somewhat. Markets NII, which comes from the trading business, rose from $680 million to $2,419 million year over year, so NII excluding Markets was $24.7 billion, up a more modest 6%. The company says the ex-Markets growth came from higher deposit balances, higher Card Services balances and higher wholesale loan balances, partly offset by lower rates.

Average loans were $1.6 trillion, up 10% year over year and 2% sequentially; average deposits were $2.7 trillion, up 8% and 2%. Period-end wholesale loans were $938.8 billion against $806.7 billion a year earlier, while consumer loans excluding credit card were flat at $393.1 billion — the loan growth is overwhelmingly corporate and card.

The earnings presentation filed the same morning gives an outlook, with the fourth-quarter figures labelled market dependent:

• 4Q26 NII of about $28 billion, implying roughly $106.2 billion for full-year 2026.
• 4Q26 NII excluding Markets of about $25.5 billion, implying about $97.2 billion for 2026.
• 4Q26 adjusted expense of about $27.5 billion, implying about $108.6 billion for 2026 (adjusted expense excludes firmwide legal expense).
• A preliminary 2027 central case of NII excluding Markets of about $107 billion, with growth “driven by the impact of balance sheet growth and higher rates.”

On our arithmetic, $107 billion would be about 10% above the implied 2026 figure — a faster pace than the 6% ex-Markets growth in this quarter. It is a projection the presentation labels preliminary, not a result.

Credit: charge-offs and the reserve build

A net charge-off (NCO) is a loan written off as uncollectible, less recoveries; a reserve build is an increase in the allowance for losses the bank expects in the future. This quarter’s provision is the sum of the two.

Credit costs were $2.7 billion: $2.2 billion of net charge-offs, down $389 million from a year earlier and driven by Wholesale, plus a $539 million net reserve build, primarily in Wholesale. A year ago the provision was $3.4 billion, with $2.6 billion of charge-offs and an $810 million build.

• Realized losses are improving. The firmwide NCO rate on retained loans fell to 0.59% from 0.76% a year earlier. The Card Services net charge-off rate was 2.91%, down from 3.34% in the second quarter and 3.15% a year ago. The presentation’s 2026 outlook for the Card Services NCO rate is about 3.2%.
• The reserve build is concentrated in Wholesale. CIB’s provision was $663 million, including a $452 million reserve build; the company attributes the provision predominantly to net lending activity and changes in the credit quality of certain exposures. In the supplement, the allowance for lending-related commitments — reserves held against undrawn credit lines — rose $459 million in the quarter, to $5,610 million. CCB’s reserve build, by contrast, was only $50 million.

The total allowance for credit losses stood at $31,929 million, and the allowance-to-retained-loans ratio eased to 1.75% from 1.88% a year earlier. Total nonaccrual loans were $9,366 million, or 0.59% of loans, down from 0.70%. On these figures, credit does not read as a stress story (our reading); the company ties the CIB build to net lending activity as well as to changes in the credit quality of certain exposures.

The capital story: why net buybacks fell to $664 million

CET1 — common equity Tier 1 — is the regulators’ core measure of a bank’s loss-absorbing capital, expressed as a share of risk-weighted assets (RWA), which weight each exposure by its riskiness.

The Standardized CET1 ratio was 13.9% at September 30 (estimated), against 14.2% in June and 14.8% a year ago; the Advanced ratio was 14.1%. CET1 capital itself rose to $304 billion. The ratio fell because the denominator grew faster: Standardized RWA reached about $2.18 trillion, up from $1.94 trillion a year ago — about 13% on our arithmetic.

The earnings presentation walks the change from 14.2% to 13.9% (the bars net to −26 basis points; the rest is rounding in the displayed ratios):

Driver of Standardized CET1, 2Q26 → 3Q26	Basis points
Starting ratio, 2Q26	14.2%
Net income	+70
Capital distributions (dividends and net buybacks)	−24
RWA growth	−33
AOCI	−36
Other	−3
Ending ratio, 3Q26	13.9%

Two lines stand out. RWA growth — $28 billion from lending outside CIB Markets and $30 billion from CIB Markets, per the presentation — consumed 33 basis points. And AOCI, accumulated other comprehensive income, the account that captures unrealized gains and losses on available-for-sale securities, consumed 36 basis points: the CET1 rollforward in the supplement shows a $7,893 million unrealized loss on investment securities for the quarter. The release does not explain the AOCI move. Dimon’s comment lists “rising interest rates” among the forces shifting “under the surface”; rising rates lower the market value of fixed-rate bonds, which would be consistent with the AOCI line, but that link is our reading, not a company statement.

With capital being absorbed on two fronts, distributions were cut back:

• Gross repurchases were $1,057 million (3.1 million shares) against $6,703 million in the second quarter and $8,315 million a year ago — down about 87% year over year on our arithmetic. Net of employee issuance, repurchases were $664 million.
• The common dividend rose to $1.65 a share from $1.50, about $4.4 billion in total.
• Net payout over the last twelve months was 61%. In the quarter, dividends plus net buybacks came to about $5.1 billion, roughly a third of the $15.0 billion of net income applicable to common equity (our arithmetic).

Dimon’s explanation, quoted from the release: “In line with our hierarchy, we reduced share repurchases this quarter. We believe we can deploy this capital over time at very attractive returns for our shareholders.” The board authorized a new repurchase program of up to $50 billion effective July 1, 2026, replacing the previous $50 billion program, so the reduction is a choice about pace, not a lack of authorization.

Tangible book value per share was $112.64, up 7% year over year but down from $113.35 in June — the first sequential decline in the five quarters the supplement shows.

The segments: where the earnings came from

Consumer & Community Banking (CCB) — Chase’s retail branch, card and auto business — earned $5.7 billion, up 13%, on revenue of $21.2 billion, up 9%, for a 36% return on equity. Card Services & Auto revenue rose 15% to $8.3 billion on higher card balances and net yield. Average deposits were up 4% year over year and flat sequentially; debit and credit card sales volume was up 10%. Dimon said Chase added over 650,000 net new checking accounts in the quarter.

Commercial & Investment Bank (CIB) earned $8.2 billion, up 20%, on revenue of $22.7 billion, up 14% (ROE 18%). Investment banking fees were $3.0 billion, up 14% year over year and down 8% from the second quarter, and the company cites a #1 ranking in global investment banking fees with a 9.2% wallet share year to date, according to Dealogic. Markets revenue was $10.3 billion, up 15%, but the mix was lopsided: Equity Markets rose 49% to $5.0 billion while Fixed Income Markets fell 4% to $5.4 billion. Payments revenue rose 14% to $5.6 billion. Dimon noted that client activity “did moderate somewhat during the quarter.”

Asset & Wealth Management (AWM) earned $1.8 billion, up 11%, on revenue of $6.9 billion, up 14% (ROE 45%). Assets under management were $5.2 trillion, up 13%, and client assets $7.9 trillion, up 15%; Dimon cited $263 billion of client asset net inflows.

Corporate posted a net loss of $455 million, against net income of $825 million a year ago, as its NII fell $737 million on lower rates and it booked the $658 million of securities losses.

What to watch in Q4

• NII against the ~$28 billion guide, and especially NII excluding Markets against ~$25.5 billion. Markets NII has become a large swing factor in the headline figure.
• The CET1 ratio and the pace of buybacks. Net repurchases of $664 million were a deliberate reduction. Whether they recover depends on RWA growth and on the AOCI line, which moves with bond prices.
• The Wholesale reserve build. A $452 million CIB build tied partly to “changes in the credit quality of certain exposures” is small against a $31.9 billion allowance, but a second quarter of it would be a trend.
• Card NCOs against the ~3.2% full-year outlook. The nine-month Card Services NCO rate was 3.23%, so the outlook implies a fourth quarter broadly in line with the year to date (our reading).
• Expense against ~$27.5 billion adjusted. Expense grew 12% against 8% revenue growth this quarter.

Quick answers

How much did JPMorgan Chase earn in Q3 2026?

Net income was $15.3 billion, or $5.57 per diluted share, up from $14.4 billion and $5.07 a year earlier. Excluding $658 million of pre-tax securities losses, it was $15.8 billion, or $5.75 a share.

What is JPMorgan’s NII outlook?

About $28 billion of net interest income in the fourth quarter (about $25.5 billion excluding Markets), and a preliminary 2027 central case of about $107 billion of NII excluding Markets.

Why did JPMorgan buy back less stock?

The release says it reduced repurchases in line with its capital hierarchy, which puts investing in the franchise and supporting clients first; net repurchases were $664 million as the CET1 ratio fell to 13.9%.

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Sources and method. Company figures — the income statement, per-share and share-count data, managed-basis revenue and the $735 million taxable-equivalent adjustment, NII and noninterest revenue with and without Markets, the significant item and the ex-item figures, the 2Q26 Visa and equity-investment gains, balances, credit metrics and allowances, capital ratios, RWA and the CET1 rollforward, repurchases, dividends, payout and the repurchase authorization, book and tangible book value, segment results and the Dimon quotations — are JPMorgan Chase’s own disclosures in Exhibits 99.1 (earnings release) and 99.2 (financial supplement) to the Form 8-K filed 2026-10-13 (accession 0001628280-26-065582) for the quarter ended 2026-09-30, read directly from SEC EDGAR and linked above. The CET1 walk, the RWA drivers, the 4Q26 outlook and the company’s implied 2026 totals, the ~3.2% 2026 Card Services NCO outlook and the preliminary ~$107 billion 2027 central case come from the earnings presentation filed the same day as a separate Form 8-K under Item 7.01 (accession 0001628280-26-065616), read from the slide images in that filing. The current-period CET1, RWA and capital figures are labelled estimated by the company.

No consensus estimate is included. Whether the quarter beat or missed is judged only against the year-ago quarter, because JPMorgan Chase issued no quarterly guidance; the July full-year outlook it is compared with comes from the earnings presentation filed as Exhibit 99 to the Form 8-K of 2026-07-14 (accession 0001628280-26-048086). This piece makes no claim about the share-price reaction.

Our arithmetic, labelled as such: the roughly $52.4 billion of 2Q26 managed revenue excluding the Visa and equity-investment gains; the ~13% RWA growth; the ~87% year-over-year decline in gross repurchases; distributions of about $5.1 billion, roughly a third of net income applicable to common equity; the ~10% gap between the 2027 central case and the implied 2026 NII excluding Markets; and the observation that tangible book value per share fell sequentially for the first time in the five quarters shown. These are approximations built on the disclosed figures, not reported numbers. The interpretation — that the quarter’s most informative signal is capital allocation rather than earnings, and that the AOCI decline is consistent with higher rates — is our analysis, not a company statement, and is not a forecast.

Related: UnitedHealth Q3 2026 and Johnson & Johnson Q3 2026, the other third-quarter reports we covered the same day. The next day’s reports: Bank of America Q3 2026 and Morgan Stanley Q3 2026.

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