Re-live our live blog coverage of earnings season!
This is the time of year when publicly traded companies report their financial results, giving investors and analysts a glimpse into their performance and future outlook. We'll bring you real-time updates, analysis, and commentary on the latest earnings reports from major companies across various sectors. Stay tuned as we break down the numbers, highlight surprises, and provide insights into what these results mean for the market.
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Summary
- JPMorgan Chase surges past estimates
- Wells Fargo extends earnings per share growth streak
- Johnson & Johnson sales rise, will spin off orthopaedics unit
- Goldman Sachs soundly beats estimates with investment banking growth
- Citigroup reports revenue increases across all divisions
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8:49 am (AEDT):
Good morning! Harlan Ockey here to walk you through today's earnings.
Starting with the NYSE, JPMorgan Chase (JPM) beat estimates on both revenue and earnings per share.
Revenue was US$46.43 billion, up 9% year-over-year and above LSEG estimates of $45.4 billion. Earnings per share were $5.07, rising 16% and passing estimates of $4.84.
Its net income was up 12% to $14.39 billion. Assets under management increased by 18% to $4.6 trillion.
Net income for its Consumer & Community Banking business rose 24%, while Commercial & Investment Bank income grew by 21%. Assets & Wealth Management income was up 12%, and Corporate income dropped 54%.
"While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient. However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation. As always, we hope for the best, but these complex forces reinforce why we prepare the Firm for a wide range of scenarios," said CEO Jamie Dimon.
JPMorgan Chase said this week that it would invest $1.5 trillion into supporting key U.S. industries for economic security, including defense, manufacturing, and strategic technologies. The company said it was preparing to hire new bankers and experts under the initiative, and increase its research efforts.
Read Garry West's full report here.
9:15 am (AEDT):
Still with the NYSE, BlackRock (BLK) reached record high assets under management last quarter.
The company had US$13.46 trillion in assets, up 17.3% year-over-year and exceeding $13 trillion for the first time. This surpassed Morningstar estimates of $13.05 trillion.
Equity represented $7.46 trillion of its assets under management. BlackRock reported $205 billion in total net inflows, with iShares exchange traded funds seeing a record quarter.
Revenue was $6.51 billion, rising 25%. Adjusted net income was up 11% to $1.91 billion, and earnings per share grew 1% to $11.55.
Operating income was $1.96 billion, falling from $2.01 trillion.
"“BlackRock delivered one of our strongest quarterly flows results, with net inflows of $205 billion, powering 10% organic base fee growth in the third quarter and 8% over the last twelve months," said CEO Laurence D. Fink.
"That growth is even more notable in its diversification. Top organic base fee growth contributors included our systematic franchise, private markets, digital assets, outsourcing, cash and iShares ETFs, which saw record demand. BlackRock’s multiple sources of growth differentiate us and are resonating through accelerating client activity across our platform.
9:34 am (AEDT):
And at the NYSE again, Wells Fargo (WFC) beat estimates on earnings per share for a fourth consecutive quarter.
Earnings per share were US$1.73, above Zacks estimates of $1.55 and rising from $1.52 year-over-year. Revenue was $21.44 billion, up 5% and surpassing estimates for a second time in the past year.
Net interest income rose 2% to $11.95 billion, while noninterest income grew by 9% to $9.49 billion.
Average loans were $928.7 billion, up from $910.3 billion one year ago. Average deposits fell to $1.340 trillion, from $1.342 trillion.
Consumer Banking and Lending average loans rose by 1% to #325.3 billion, the largest of any segment.
Corporate and Investment Banking loans were up 8%, and Wealth and Investment Management loans grew 4%. Commercial banking loans dropped by 1%.
"The momentum we are building across our businesses drove strong financial results in the third quarter with net income and diluted earnings per share both up from a year ago and the second quarter. Revenue grew with higher net interest income and strong, broad-based growth in fee-based income across both our consumer and commercial businesses," said CEO Charlie Scharf.
“While some economic uncertainty remains, the U.S. economy has been resilient and the financial health of our clients and customers remains strong. Spending on debit and credit cards continued to increase, auto loan originations had strong growth from a year ago, and total client assets in our Wealth and Investment Management business continued to grow. We grew fees from investment banking and trading and our commercial loan balances continued to grow."
Scharf has also been appointed as chair of the board, effective from Tuesday.
Wells Fargo reiterated its previous full-year forecast, which expects net interest income to be around $47.7 billion, similar to 2024.
9:57 am (AEDT):
It's a NYSE-heavy day: Johnson & Johnson (JNJ) reported strong sales growth, and will spin off its orthopaedics business within the next two years.
Sales were up 6.8% year-over-year to US$23.99 billion. Adjusted earnings per share were $2.80, increasing 15.7% and beating Zacks estimates of $2.77.
U.S. sales were $13.81 billion, growing by 6.2%, while international sales rose by 7.6% to $10.29 billion.
Its Innovative Medicine and MedTech businesses each saw reported sales grow by 6.8%. Growth in Innovative Medicine was driven by oncology, immunology, and neuroscience drugs, while MedTech growth was due to electrophysiology, cardiovascular, and wound closure products.
"Johnson & Johnson delivered another strong performance in the third quarter fueled by the depth and strength of our portfolio and significant progress across our pipeline,” said Johnson & Johnson CEO Joaquin Duato. “With a sharpened focus on the six priority areas of Oncology, Immunology, Neuroscience, Cardiovascular, Surgery and Vision, Johnson & Johnson is in a new era of accelerated growth and innovation, with pioneering treatments that will continue to transform lives.”
The company has raised its full-year guidance, and predicts reported sales of $93.5-93.9 billion. It had projected $93.2-93.6 billion in July.
Its orthopaedics business will separate from Johnson & Johnson into a new company known as DePuy Synthes in 18 to 24 months. Orthopaedics represented around 10% of its total revenue in 2024.
“The intended separation would further strengthen the focus of Johnson & Johnson as an innovation powerhouse, serving areas of high unmet needs across Innovative Medicine and MedTech, accelerating the ongoing shift of the Company’s MedTech portfolio toward higher-growth and higher-margin markets,” Johnson & Johnson wrote.
10:29 am (AEDT):
Turning to the NASDAQ, Domino's Pizza (DPZ) reported a slide in net income after its investment in Domino's Pizza China, but still beat estimates on earnings per share,
Retail sales were US$4.70 billion, rising from $4.39 billion on year ago. Earnings per share were $4.08, down from $4.19 but passing LSEG estimates of $3.97.
Net income dropped by 5.2% to $139.3 million, which the company credited to unrealised losses and gains due to its investment in DPC Dash, also known as Domino's Pizza China.
Operating income grew by 12.2% to $223.2 million.
U.S. stores' retail sales were up 7.0%, while international retail sales increased by 5.7%. The company's net number of locations rose by 214 during the quarter.
"In the U.S., we drove positive order counts behind our Best Deal Ever promotion and stuffed crust pizza product innovation for the third quarter. This resulted in another quarter of strong growth in both our delivery and carryout businesses. Seeing our strategy being executed at such a high level gives me the confidence that we will continue to win and take QSR pizza market share around the world in 2025 and beyond," said CEO Russell Weiner.
Read Chloe Jaenicke's full story here.
11:14 am (AEDT):
And back to the NYSE, Goldman Sachs (GS) soared past estimates on revenue and earnings per share, driven by strong growth in investment banking.
Revenue was US$15.18 billion, up 20% year-over-year and beating LSEG estimates of $14.1 billion. Earnings per share were $12.25, above estimates of $11.00.
Global Banking & Markets revenue grew by 18% to $10.12 billion. Assets & Wealth Management revenue was up 17% to $4.40 billion.
Investment banking fees surged by 42% to $2.66 billion, above StreetAccount estimates by around $500 million. The company credited this to an increase in completed mergers and acquisitions, as well as greater leveraged finance activity.
Operating expenses rose by 14% to $9.45 billion, which the company said was due to increases in compensation and benefits spending.
“This quarter's results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment. Across our business, clients continue to turn to us for their most complex and consequential matters. We know that conditions can change quickly and so we remain focused on strong risk management. Longer term, we are prioritizing the need to operate more efficiently to seamlessly deliver the firm to our clients helped by new AI technologies," said CEO David Solomon.
Read Cameron Drummond's full story here.
11:38 am (AEDT):
Sticking with the NYSE, Citigroup (C) surpassed estimates on revenue and earnings per share, as every division posted record revenue.
Revenue was US$22.09 billion, up 9% year-over-year and beating LSEG estimates of $21.09 billion. Adjusted earnings per share were $2.24, rising from $1.51 and above estimates of $1.90.
Markets, its largest segment by revenue, saw revenue climb by 15% to $5.6 billion. Services, its largest segment by net income, reported a revenue increase of 7% to $5.4 billion.
Banking revenues also rose by 34%, Wealth revenues were up 8%, and U.S. Personal Banking revenues grew by 7%.
The company recorded a $726 million expense from its sale of a 25% equity stake in Grupo Financiero Banamex, one of Mexico's largest banks. Operating expenses increased by 9% to $14.3 billion, partly due to this charge.
“The relentless execution of our strategy is delivering stronger business performance quarter after quarter and improving our returns. The cumulative effect of what we have done over the past years – our transformation, our refreshed strategy, our simplification – have put Citi in a materially different place in terms of our ability to compete. Investments in new products, digital assets and AI are driving innovation and improved capabilities across the franchise,” said CEO Jane Fraser.
Its full-year guidance projects revenue greater than $84 billion, with expenses higher than $53.4 billion.
Tomorrow, we'll see earnings reports from companies like ASML, Bank of America, and Morgan Stanley. Thank you for joining us today!
