Global financial services giant JPMorgan Chase (NYSE:JPM) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 9% year on year to $45.68 billion. Its GAAP profit of $5.24 per share was 16.6% above analysts’ consensus estimates.
Is now the time to buy JPM? Find out in our full research report (it’s free).
JPMorgan Chase (JPM) Q2 CY2025 Highlights:
- Revenue: $45.68 billion vs analyst estimates of $43.63 billion (9% year-on-year decline, 4.7% beat)
- EPS (GAAP): $5.24 vs analyst estimates of $4.49 (16.6% beat)
- Market Capitalization: $787.9 billion
StockStory’s Take
JPMorgan Chase’s second quarter showcased resilience in a complex environment, as management highlighted robust activity in investment banking and markets, alongside increased lending across wholesale and card portfolios. The company attributed its performance to broad-based growth, with particular strength in card services and asset and wealth management. CFO Jeremy Barnum pointed to higher revolving balances and continued account acquisition in the card business, as well as strong net inflows in asset management. CEO Jamie Dimon emphasized that, despite some segment variability, “essentially every part of the company is firing,” driven by organic growth and investments across business lines.
Looking forward, management’s guidance is shaped by expectations of continued deposit growth, resilient consumer credit, and a cautious approach toward regulatory and macroeconomic headwinds. Barnum noted that non-interest income and net interest income guidance reflects both forward curve changes and ongoing strength in key segments. Dimon stressed the importance of adapting to a dynamic regulatory environment and investing in technology, payments, and digital assets, stating, "Navigating uncertainty is the norm for both us and our clients." Management also highlighted ongoing opportunities in the middle market and the potential for organic and inorganic growth, while remaining vigilant about evolving risks.
Key Insights from Management’s Remarks
Management attributed this quarter’s performance to increased loan growth, resilient consumer and commercial credit, and a favorable environment for investment banking and markets activities. Regulatory and competitive dynamics also shaped the quarter’s outcomes.
- Investment banking momentum: Advisory and underwriting fees grew, benefiting from increased sponsor activity and several large deal executions. Management cited a “robust pipeline” and noted a shift in sentiment among clients, particularly as some macro risks receded.
- Wholesale and card lending growth: New lending activity in both wholesale and consumer portfolios contributed to higher average loan balances. Card outstandings rose due to continued account acquisition and increased revolving balances, while auto originations gained traction from higher lease volume.
- Markets revenue resilience: The Markets business delivered growth in both fixed income and equities, attributed to improved performance in overseas and emerging markets, as well as derivatives trading. Management noted that trading results remained strong despite quieter conditions in some segments during the latter part of the quarter.
- Deposit trends stabilize: Consumer banking saw a stabilization in deposits, with net new account growth and franchise expansion helping to offset earlier headwinds from rate-driven outflows. Management believes that abated yield-seeking flows have allowed core growth to reassert itself.
- Expense growth and technology investments: Expenses rose, driven primarily by higher compensation and technology investments. The company continues to invest in digital capabilities, payments infrastructure, and cybersecurity, viewing these as necessary for maintaining competitive positioning and supporting long-term growth.
Drivers of Future Performance
JPMorgan Chase’s outlook is anchored by expectations for continued deposit growth, stable credit quality, and disciplined expense management, while navigating evolving regulatory and macroeconomic conditions.
- Deposit and loan growth priorities: Management expects further growth in consumer and wholesale deposits, supported by franchise expansion and deepening customer relationships. Loan growth is anticipated in both consumer and commercial portfolios, with an emphasis on selective risk-taking and maintaining credit discipline.
- Technology and digital initiatives: Continued investment in payments technology, digital assets, and customer-facing platforms remains a strategic focus. Management views these initiatives as critical for capturing market share and enhancing the client experience, particularly as fintech competition intensifies.
- Regulatory and macro risks: Management remains cautious about potential regulatory changes affecting capital, liquidity, and product offerings. They also highlight the importance of adapting to external risks such as tariffs, interest rate movements, and geopolitical events, which could impact lending activity and overall business momentum.
Catalysts in Upcoming Quarters
In the months ahead, the StockStory team will focus on (1) deposit and loan growth trends across consumer and wholesale segments, (2) further development and uptake of digital payments and tokenization initiatives, and (3) the impact of evolving regulatory policies—including capital requirements and liquidity rules—on capital deployment and profitability. Execution on technology investments and the bank’s ability to sustain momentum in investment banking and markets will also be closely watched.
JPMorgan Chase currently trades at $285.81, in line with $288.58 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment.
Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.