Major US banks kicked off the earnings season with strong results in the second quarter of 2026, largely driven by a boom in equities trading and robust investment banking. JPMorgan Chase, Goldman Sachs, Citi, and Bank of America all reported significant profit increases. JPMorgan, the nation's largest bank by asset size, reported a record second-quarter profit of $16.9 billion, or $6.14 per share, beating analyst estimates of $5.59 per share. Managed revenue reached $58 billion, surpassing analyst expectations. The bank's equity markets division saw a remarkable 86% surge in revenue, and overall markets revenue grew 35% compared to the same period last year. Investment banking fees also jumped 30% year-over-year, benefiting from a rebound in the U.S. IPO market and significant dealmaking.
Goldman Sachs also reported strong earnings, with profit nearly doubling to $20.98 per share, up from $10.91 per share last year. Revenue for Goldman Sachs jumped over 39% to $20.34 billion, bolstered by a 53% spike in its Global Banking and Markets division, which included a 55% increase in investment banking fees. The firm also saw a 20% surge in asset and wealth management revenue. Wells Fargo reported a 22% increase in net income, reaching $6.4 billion or $2 per share, with revenue of $22.6 billion, primarily boosted by higher interest income.
Analysts attributed these strong performances to market volatility and an active dealmaking environment. JPMorgan CEO Jamie Dimon noted that the bank benefited from a "very healthy, active, exuberant market with very high prices and very high volumes." Brian Mulberry, chief market strategist at Zacks Investment Management, highlighted that "Record revenues in every business segment powered a blowout quarter for JPMorgan, specifically investment banking revenues and trading revenues demonstrated how strong capital markets are currently." David Wagner, Head of Equity and Portfolio Manager at Aptus Capital Advisors, commented that the "eye- popping 86% explosion in stock trading and a total resurgence in investment banking prove that when the macro environment gets volatile, Wall Street's biggest whale simply eats everyone else's lunch."
