JPMorgan's Q4 Results To Reveal If Dealmaking Will Replace Rate-Driven Profits For Big Banks In 2026- SpaceX's $1.5 Trillion IPO In Focus

JPMorgan Chase & Co. (NYSE:JPM) is set to report its fourth-quarter results before markets open on Tuesday, kickstarting the bank earnings season. Leading analysts expect the company to set the tone for the entire industry in 2026, with several key catalysts lining up.

Dealmaking Set To Replace Rate-Driven Profits?

“The story for 2026 is really going to be about deal-making,” said Alexis Garcia, Senior Editor at Investor’s Business Daily, noting that investment banking and trading revenue will be a key highlight on IBD’s Earnings Cheat Sheet podcast on Friday.

Garcia highlighted SpaceX’s rumored $1.5 trillion IPO this year, alongside other long-awaited tech IPOs, on which she said, “analysts and investors are really going to be looking for clues to see perhaps how JP Morgan is positioning itself for these massive offerings.”

Ed Carson, News Editor at Investor’s Business Daily and co-host of the podcast, said that JPMorgan, as a money center bank, has consistently outperformed regional lenders thanks to its strength in investment banking, M&A, and equity issuance.

Carson expects earnings growth at the bank to slow down in 2026, owing to the cut in interest rates, and said that as a result, the focus will be on whether big banks can reignite momentum through deal flow and equity underwriting.

During its third-quarter results three months ago, JPMorgan CFO, Jeremy Barnum, said that the company had its “busiest summer” in terms of dealmaking in a long time and expected the momentum to continue into the fourth quarter and the new year.

JPMorgan Undervalued, Bank Stocks ‘All Cheap’

BofA Securities analyst Ebrahim H. Poonawala recently raised JPMorgan’s price target to $362 per share, from $350, which represents an upside of 11% from current levels, while reiterating a “Buy” Rating on the stock.

According to Poonawala, the stock currently undervalues the company’s market and tech leadership, along with its strong profitability and ample capital. The analyst forecasted $95 billion in core net interest income and 6% year-over-year revenue growth for 2026.

Renowned TV host Jim Cramer echoed a similar perspective, but on the banking sector in general, saying, “the banks are all cheap,” in a post on X last month.

JPMorgan currently trades at a valuation of 15.46 times forward earnings and 5.09 times sales, which is significantly below the S&P 500, tracked by the SPDR S&P 500 ETF (NYSE:SPY), with a price-to-earnings ratio of 28.15.

Shares of JPMorgan Chase were down 1.43% on Monday, closing at $324.49, and are up 0.07% overnight. The stock scores poorly on Momentum and Growth in Benzinga’s Edge Stock Rankings, but has a favorable price trend in the short and long terms. Click here for deeper insights into the stock, its peers, and competitors.

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