Wall Street’s largest lenders kicked off the 2026 earnings season with results that stunned skeptics. Goldman Sachs, JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley together posted profits of $47.3 billion for the first quarter, up 12% from a year earlier, according to Yahoo Finance. And this amid the Iran conflict’s oil shocks. Trading desks led the charge. Record volatility from energy markets and equities fueled revenue across the board.
Goldman Sachs fired first. Earnings per share hit $17.55, topping estimates of $15.92. Revenue climbed to $17.23 billion, a 14.4% jump year-over-year and above the $16.66 billion forecast, as detailed in Yahoo Finance via MarketBeat. CEO David Solomon called EPS, revenue, and net income the second-highest in company history. Global Banking & Markets and Asset & Wealth Management both set records. Shares had already rallied 16% from their year-to-date low. But Solomon flagged headwinds: geopolitical unrest, unclear energy price impacts. Still, he said the bank stands ‘extremely well-positioned.’
JPMorgan Chase followed with equal force. Net income rose 13% to $16.5 billion. EPS reached $5.94, beating $5.45 expectations; revenue hit $50.54 billion versus $49.26 billion anticipated. Net interest income grew 9%. Loans expanded 11%. Trading? Stellar. Fixed-income, currencies, and commodities revenue surged 21% to $7.08 billion. Equities trading climbed 17% to $4.48 billion. Investment banking fees leaped 38% to $3.14 billion. CEO Jamie Dimon highlighted tailwinds: consumers earning, spending; businesses healthy. Card spending rose 9% year-over-year. Yet, he trimmed full-year net interest income guidance slightly. Delinquencies ticked down. Provisions for credit losses dropped 24% to $2.51 billion.
Wells Fargo beat on earnings too. EPS of $1.60 edged past forecasts, though revenue missed amid softer net interest income. Top-line still grew 6.4%. Card spending increased 7%. Loans rose 11%. The bank held its full-year guidance. But margin pressure showed. Investors noted the split: market-facing units thrived; retail banking squeezed.
Citigroup’s profit jumped 42%. EPS $3.06 topped $2.65 estimates. Revenue set a record, up 14.1%, powered by trading. US card spending gained 5%. Provisions fell. CEO Jane Fraser emphasized efficiency targets.
Bank of America delivered its strongest quarter in nearly two decades. Net income climbed 17% to $8.6 billion. EPS $1.11 beat $1.01 forecasts; revenue $30.3 billion exceeded $29.9 billion expected, per CNBC. Net interest income rose 9% to $15.9 billion. CEO Brian Moynihan pointed to healthy client activity, solid spending, stable asset quality. Card spending up 6%. Delinquencies declined.
Morgan Stanley capped the week with fireworks. Net revenue record $20.6 billion, up 16%. Profit soared 29% to $5.57 billion; EPS $3.43 beat $3.00 estimates, as reported by CNBC. Equities trading hit all-time high $5.15 billion, up 25%. Fixed income jumped 29% to $3.36 billion on commodities volatility. Wealth management pulled in record $8.5 billion revenue, $118 billion net new assets. ROTCE 27.1%. Chairman Ted Pick affirmed the integrated firm’s higher operating plane.
The financials sector, tracked by the XLF ETF, shed almost 4% year-to-date entering earnings week. Then it rebounded over 7% in the prior month. No wonder. Six big banks raked in a record $45 billion in trading revenue, up 17%, noted Charlie Bilello on X. Stocks reacted sharply. Citigroup soared 110% over the past year. Goldman up 81%, Morgan Stanley 78%.
Consumers proved resilient. Despite fuel prices, spending held. JPMorgan’s Dimon dismissed gas as a ‘rather small component.’ CFO Jeremy Barnum added client sentiment stays strong amid Middle East uncertainty, per Yahoo Finance. Credit quality? Benign. Delinquencies fell or flatlined. Provisions shrank.
But caution lingers. Analysts keep price targets modest. Fed rate cuts? Low odds. JPMorgan trimmed NII outlook. Wells Fargo’s revenue miss flags deposit competition, rate pressures. Dimon warned of ‘complex risks.’ Regionals like U.S. Bancorp, PNC echoed beats but mixed revenue, per X updates from TradingPulseX.
Year-to-date, financials lagged S&P sectors. Post-earnings? Momentum builds. Trading and investment banking revival—equities up, FICC mixed but commodities hot from war volatility—drove gains. Loan pipelines improve. Deposits steady. Operating leverage shines.
Wall Street wonders: sustainable? Higher-for-longer rates help net interest income now, but pressure looms if deposits flee for better yields. Capital markets activity? Deal backlogs grow. M&A advisory fees exploded. Yet energy shocks, geopolitics cloud 2026.
Early signs point up. Banks navigate turbulence. Profits beat. Economy endures. Investors eye guidance from more reports. Financials could lead S&P from here.
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