Wall Street’s latest earnings round delivered a clear divide.
Goldman Sachs reported third-quarter net revenue of $18.68 billion and earnings per share of $17.01, both well above expectations. The bank said the equities business was the star of the quarter, with revenue surging 72%. David Solomon called it a 'very strong performance.'
JPMorgan Chase, by contrast, missed on both profit and revenue for the first time in nearly three years. The bank, the nation’s largest by assets and market capitalization, posted $50.17 billion in net revenue, below the $51.22 billion analysts expected. Earnings per share came in at $5.57 versus $5.90. Fixed-income trading revenue fell 4% year over year to $5.4 billion, about $550 million below expectations, while non-interest expenses were $90 million higher than estimates as costs jumped 12% over the past year.
Jamie Dimon said in a statement that JPMorgan reported 'another quarter of strong results.' He did not directly address the earnings miss. On a call with reporters, Jeremy Barnum described the bank’s dealmaking pipeline as 'very, very strong.'
Bank of America also missed expectations. Profit fell 17% to $6.93 billion, or 91 cents per share, in the third quarter, and revenue came in roughly $570 million below analysts’ estimates. The results came just a day after regulators announced a $1.2 billion penalty on Bank of America, alleging that management failed to report billions of dollars in suspicious transactions. That added to the pressure of an already lackluster quarter.
Wells Fargo was another laggard. It missed on revenue despite beating earnings estimates, reporting $21.87 billion versus the $22.31 billion consensus. It was the third time in the past four quarters that the bank came up short on the top line.
Other names fared better. Morgan Stanley posted higher profit and revenue that beat expectations, supported by strength in equities trading. Citigroup delivered a top- and bottom-line beat, with its best third-quarter revenue in a decade.
The common thread is that management teams still say the U.S. consumer is holding up despite higher rates and persistent inflation. Jane Fraser said 'the consumer is still driving much of the [economic] growth,' while Charlie Scharf pointed to higher consumer spending, low loan-delinquency rates and growing deposit balances.
For investors, the message is simple: capital is rewarding the banks with the clearest trading strength and the cleanest earnings execution. Where fixed-income desks weaken, costs rise, and regulation tightens, margins get squeezed fast. The market has already voted on who is delivering and who is merely explaining.
There is also a broader lesson for Washington. When the biggest banks are still leaning on equities and deal flow to offset softer lines elsewhere, the real economy is not a political talking point; it is a ledger of prices, spending, and risk. The taxpayer does not benefit from sloppy compliance or rising expense loads. Free enterprise does.
