Major Financial Institutions Prepare to Report Results
Financial stocks are hovering near record levels ahead of a crucial wave of second-quarter earnings reports. Among the key players set to disclose results are JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock on Tuesday, followed by Morgan Stanley, Goldman Sachs, and Bank of America on Wednesday.
Investors are closely watching the sector as Wall Street firms revise their forecasts upward for several large-cap banks. JPMorgan and Morgan Stanley received notable upgrades last week from Keefe Bruyette & Woods, which raised their price targets to $327 and $160 respectively, citing structural scale advantages and “business model superiority.” The firm also raised targets for Bank of America, Citigroup, Wells Fargo, and Goldman Sachs.
JPMorgan, Wells Fargo, and Citi Lead Tuesday’s Reports
According to FactSet, JPMorgan Chase is projected to post earnings of $4.48 per share, down from $6.12 last year, as revenue is expected to drop by 14% to $43.9 billion. Still, net interest income is forecast to grow 3.1% to $23.6 billion. JPM stock has already gained 20% in 2025, having broken out in May.
Wells Fargo is projected to report earnings of $1.41 per share, up from $1.33 a year ago, with a modest revenue increase to $20.76 billion. Net interest income, however, is expected to decline to $11.9 billion. The stock has risen 18% this year and is on a strong three-month rally.
Citigroup is also forecast to report solid growth, with earnings seen rising 6% to $1.61 per share and revenue up 4% to $20.96 billion. Meanwhile, BlackRock’s earnings are expected to climb to $10.78 per share on a 13% revenue increase to $5.45 billion. The asset manager’s shares are up over 8% in 2025 and recently hit new highs.
Morgan Stanley, Goldman Sachs, and BAC Follow Midweek
On Wednesday, attention will shift to Morgan Stanley, which is anticipated to post a nearly 9% earnings increase to $1.98 per share, with revenue growing to $16.07 billion. Morgan Stanley stock is up 14% year-to-date and near recent highs.
Goldman Sachs is expected to report a 12% rise in earnings to $9.65 per share on revenue of $13.51 billion, a 6% increase from the previous year. GS stock has surged 24% in 2025 and is consolidating just below a July peak.
Bank of America rounds out the group, with analysts forecasting earnings of 86 cents per share, up slightly from last year, and revenue rising to $26.75 billion. While BAC stock attempted a breakout in early July, it has since slipped and remains below its 2006 all-time high of $55.08.
Mixed Sentiment Amid High Valuations
Despite optimism around long-term growth potential, not all analysts are bullish. Citizens JMP downgraded Goldman Sachs to market perform, citing concerns about elevated valuations following a strong rebound in bank shares since April.
Meanwhile, Barclays noted that trading activity has remained strong across brokers and exchanges, with current interest rates supporting healthy net interest income through year-end. The firm raised its price target for BlackRock to $1,220, maintaining an overweight rating.
As earnings season begins, investor sentiment is cautiously optimistic. Analysts are looking for clarity on how financial firms are navigating macroeconomic conditions and whether recent market highs are justified by underlying performance.
