JPMorgan jumps after posting better fourth-quarter results than anyone on Wall Street dreamed

America’s largest bank crushed analysts’ expectations.

1/15/25 8:24AM

Shares of the largest US bank are moving slightly higher in the premarket after net income soared by 50% in the fourth quarter compared to the same period in 2023.

On many key profitability metrics, JPMorgan not only surpassed the median projection, but exceeded every analyst’s expectation, according to estimates compiled by Bloomberg:

Adjusted earnings per share: $4.81 (consensus $4.10, high estimate $4.43)
Net interest income — the spread between the interest payments made by borrowers and how much the bank spends funding its deposits — of $23.35 billion (consensus $22.9 billion, high estimate $23.1 billion)
Net interest margin — the difference between those aforementioned interest rates — was 2.61% (consensus 2.53%, high estimate 2.58%)
Investment banking fees of $2.48 billion (consensus $2.41 billion)
Return on equity — the net income as a share of shareholders’ equity (assets less liabilities) — of 17% (consensus 14.12%, high estimate 15.76%)
Trading income: $7.05 billion (consensus $6.66 billion, high estimate $6.8 billion)

Figures related to credit quality were a little more mixed: total loans borrowers haven’t made scheduled payments on were higher than any analyst on the Street thought, but the amount of money the bank has given out that it doesn’t expect to get back was basically in line with expectations, and the cash it set aside in reserve to cover these bad loans was lower than anticipated.

The stock was initially trading nearly 4% higher before paring those gains.

“Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business,” CEO and Chairman Jamie Dimon said.

He did, however, warn that stubborn inflation and fraught geopolitical tensions served as key risks to the outlook.

Oh, and you might recall when shares of the bank and its peers were battered in September when President Daniel Pinto said that analysts’ projections for 2025 net-interest income were “not very reasonable” and “will be lower” than $89.5 billion.

Well, the bank’s guidance for this key metric in 2025 from this morning: about $90 billion, and roughly $94 billion if you include its trading business.

Luke Kawa

11h

A festive meal based on mean, green, hairy creature fueled McDonald’s biggest day of sales on record

“Am I eating this just because I’m bored?”

Santa Claus tours Valparaiso Bay by boat

Matt Phillips13h

Cisco beats expectations for Q2 sales and EPS; Q3 margin forecast is light

Cisco is dropping in Thursday’s premarket, down 8% at 4:45 a.m. ET, after a middling Q3 profit forecast offset sales and earnings beats in its second-quarter results yesterday.

For the fiscal second quarter of 2026, the computer networking equipment giant reported:

Non-GAAP earnings per share of $1.04 vs. the $1.02 expected by Wall Street analysts, according to FactSet.
Sales of $15.35 billion vs. the $15.11 billion consensus expectation.
AI infrastructure orders from hyperscalers of $2.1 billion vs. $1.3 billion in the previous quarter.
Revenue guidance for fiscal Q3 of between $15.4 billion and $15.6 billion vs. $15.19 billion consensus estimate.
Adjusted gross margin guidance for fiscal Q3 of 65.5% to 66.5%, compared with analysts’ forecasts for 68.2%.
Fiscal year 2026 sales guidance of $61.2 billion to $61.7 billion vs. previous guidance of between $60.2 billion and $61.0 billion.

Along with other companies like Lumentum, Corning, and new S&P 500 member Ciena, which provide things like the wiring and networking equipment needed to connect server racks, Cisco shares had been enjoing a strong start to 2026 as the AI data center boom continues to roll.

J. Edward Moreno13h

McDonald’s Q4 earnings, sales beat Wall Street estimates

McDonald’s reported Q4 results on Wednesday that beat Wall Street’s expectations, which the company attributes to its “value leadership.”

For the last three months of 2025, the fast-food giant reported:

Adjusted earnings per share of $3.12, compared to the $3.05 analysts polled by FactSet were expecting.
Revenue of $7 billion, higher than the $6.8 billion analysts were penciling in.
Global comparable-store sales growth of 5.7%, compared to the 3.9% growth analysts were expecting. In the US, comparable sales grew 6.8% versus the 5.4% that was expected. The company said this was “driven by positive check and guest count growth primarily from successful marketing promotions.”

McDonald’s has emphasized discounts and promotions, such as its $5 meal deals. “McDonald’s value leadership is working,” CEO Chris Kempczinski said in a statement.

Shares were little changed in after-hours trading.

Luke Kawa

13h

AppLovin delivers top- and bottom-line beats in Q4 with Q1 guidance ahead of estimates

The ad tech company just released Q4 results.