The big banks opened Q3 earnings season, and the results split the group in two. Goldman Sachs delivered a blowout, JPMorgan posted a rare profit miss, and a trading boom lifted the whole sector. Here is how it shook out, following our bank earnings preview.
Goldman Sachs Stole the Show
Goldman Sachs (GS) earned about $17.01 per share, crushing the roughly $12.86 that analysts expected. The engine was trading: Goldman's equities revenue surged 72% as volatile markets kept its desks busy. It was one of the strongest quarters the firm has posted in years.JPMorgan's Rare Miss
JPMorgan (JPM) earned $5.57 per share on a $15.3 billion profit, short of the roughly $5.90 that analysts, and our preview, expected. It was JPMorgan's first profit miss since the fourth quarter of 2023. Net revenue still rose 8% to $50.2 billion, but a 4% drop in fixed income trading, which came in about $550 million below forecasts, plus higher expenses, weighed on the bottom line. Its equity markets revenue, by contrast, jumped 49%.Bank of America Also Fell Short
Bank of America (BAC) reported $0.91 per share, below the roughly $1.10 expected, though excluding a regulatory penalty it said it earned $1.08. Its equities revenue rose 10%. Citigroup (C) was a brighter spot, posting its best third quarter revenue in a decade.The Real Story: A Trading Boom
Across the board, equities trading soared: Goldman up 72%, JPMorgan up 49%, Morgan Stanley (MS) up 41%, Wells Fargo (WFC) up 21%, and Bank of America up 10%. Volatile markets are a gift to trading desks. The misses came from fixed income and rising costs, not from the core franchises, which is an important distinction.
Why the Stocks Did Not Soar
Here is the twist. Every major bank stock had already fallen 13% to 14% in the month before reporting, with Bank of America, Goldman and Morgan Stanley leading the drop, even as the S&P 500 rose about 2%. The market had de-risked ahead of the prints, so even strong trading numbers met a cautious tape. Expectations, not just results, drive the reaction.
Compare the big banks on Stock Market ROIFrequently Asked Questions
Did JPMorgan beat earnings in Q3 2026?
No. JPMorgan earned $5.57 per share, below the roughly $5.90 analysts expected, its first profit miss since the fourth quarter of 2023, weighed down by weaker fixed income trading and higher expenses.
Which bank had the best quarter?
Goldman Sachs stood out, earning about $17.01 per share versus a $12.86 estimate, powered by a 72% surge in equities trading revenue.
Why did bank stocks fall before earnings?
Every major bank stock dropped 13% to 14% in the month before reporting as investors de-risked, which meant even strong results met a cautious market.
The Takeaway
The quarter revealed a clear split: trading desks are booming on volatility, while fixed income and expenses pressured the likes of JPMorgan and Bank of America. With the stocks already beaten down going in, the results were less a verdict on the banks than a reminder that in this market, expectations are as important as earnings. Next up, the focus shifts to the Federal Reserve on October 28.
This article is for informational purposes only and is not financial advice. Always do your own research before investing.
