Is JPMorgan's High-Single-Digit Revenue Growth Cycle Built to Last?

JPMorgan JPM delivered another strong quarter, extending its streak of high-single-digit revenue growth. In the third quarter of 2025, total revenues rose 9% year over year, underscoring the firm’s diversification across markets, banking, asset management and payments, supported by resilient macro conditions and a constructive regulatory backdrop.

In recent quarters, JPM’s momentum has been broad-based. Net interest income (NII) continued to benefit from higher card revolver balances and healthier deposit margins, while markets revenues surged on elevated fixed income and equity trading activity. Investment banking (IB) fees improved on stronger M&A and capital markets pipelines, and asset & wealth management posted gains on rising assets, solid inflows and higher market levels. Payments and commercial banking also contributed meaningfully, helped by deposit growth, and healthy credit card and wholesale loan expansion.

However, the road ahead is more complex. With the Federal Reserve now cutting rates, JPM’s asset-sensitive balance sheet faces pressure on NII, which has already moderated through the first nine months of 2025. While loan growth, easing deposit costs and steady economic activity offer support, lower rates will remain a headwind. Meanwhile, capital markets revenues, which depend heavily on client activity and macro conditions, are likely to stay uneven.

Even so, JPMorgan remains positioned to outperform peers. Its scale, diversified business mix and best-in-class risk management offer resilience in a mixed macro environment. Continued investment in AI, digital platforms, product innovation and global client penetration should deepen engagement and unlock new revenue pools. 

While sustaining high-single-digit growth may be more challenging, JPM’s competitive advantages and structural tailwinds support a strong long-term growth outlook.

How Are JPMorgan’s Peers Faring?

Two of JPMorgan’s peers are Bank of America BAC and Citigroup C. 

In the first nine months of 2025, Bank of America recorded 7% growth in total revenues to $81.9 billion. The upside in Bank of America’s top line was driven by stronger NII from rising loans and deposits, a sharp rebound in IB fees, solid trading results, and resilient consumer and wealth businesses, all helped by generally favorable macroeconomic conditions.

Similarly, Citigroup also witnessed a 7% increase in total net revenues to $65.4 billion in the nine months ended Sept. 30, 2025. Citigroup’s revenues were supported by solid NII, higher markets revenues from active client trading, a sharp rebound in IB and corporate lending and expanding wealth-management fees driven by rising client assets.

JPMorgan’s Price Performance, Valuation and Estimates

JPMorgan shares have gained 25.3% this year.

From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.02X, slightly above the industry average. 

The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a 2.5% rise on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 3.6%. In the past seven days, earnings estimates for 2025 and 2026 have moved upward.

JPM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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