As Layoffs Keep Coming at JPMorgan, Here’s How to Play JPM Stock

JPMorgan Chase & Co. (JPM) is facing an unusual disconnect as the bank is delivering record profits while simultaneously accelerating workforce reductions. Recent layoffs have pushed JPMorgan’s announced job cuts to their highest level since 2015, with reductions spanning consumer banking, commercial and investment banking, and technology operations. The latest cuts include a new 63-employee reduction at the bank’s Jersey City office, following several other Worker Adjustment and Retraining Notifications (WARN) notices in New Jersey and Texas. Tracked filings reveal over 750 JPMorgan positions affected in 2026 so far, although WARN data does not capture every workforce reduction.

The timing is notable because JPMorgan’s underlying business remains exceptionally strong. In the second quarter of 2026, the bank generated a record $21.2 billion in net income, while net revenue climbed 28% year-over-year (YOY) to $57.3 billion. CEO Jamie Dimon has acknowledged that artificial intelligence is already allowing JPMorgan to reduce jobs in certain departments, even as many affected employees are being moved into other roles.

Therefore, it remains to be seen whether layoffs are a warning sign, or whether they represent a strategic effort. Does JPM seek to improve productivity and operating leverage as AI reshapes banking, with the bank combining powerful earnings, substantial capital returns, and aggressive technology investment with a growing focus on efficiency?

About JPMorgan Chase & Co. Stock

JPMorgan Chase & Co. is one of the world’s largest and most diversified financial institutions, serving consumers, businesses, institutional clients, and governments through its consumer banking, commercial banking, investment banking, asset management, and wealth management operations. The company is headquartered in New York and has a market cap of $947.4 billion.

JPM has delivered a strong performance in 2026, supported by robust earnings and a powerful investment-banking cycle. JPM stock has gained 10.5% year-to-date (YTD) and 20.75% over the past 52 weeks. The shares recently reached a fresh 52-week high of $366.50 on Aug. 13, before pulling back and leaving the stock 2.7% below that peak.

The rally has been underpinned by a sharp improvement in JPMorgan’s earnings power. In the second quarter of 2026, the bank generated a record net income, while investment-banking fees increased 30% YOY, and equity-trading revenue surged 86%. Plus, a strong pipeline of mergers, acquisitions, and capital-markets activity, alongside elevated market volumes, has benefited the company.

The stock is currently priced at 14.48 times forward earnings and 3.33 times sales, which is a premium compared to industry peers.

Steady Financial Performance

JPMorgan Chase & Co. reported its second-quarter 2026 results on July 14, delivering a record quarter that significantly exceeded Wall Street expectations. The bank posted net income of $21.2 billion, or $7.70 per share, compared with $15 billion, or $5.24 per share, in the year-ago quarter. That represented 41% growth in net income and 47% growth in EPS.

Revenue was another major strength. Reported net revenue increased 28% YOY to $57.3 billion, while managed revenue rose 27% to $58 billion. Net interest income climbed 10% to $25.6 billion, with Net Interest Income excluding Markets increasing 4% to $23.7 billion. Growth was supported by higher deposit balances, increased revolving balances in Card Services and higher wholesale loan balances, although the benefit was partly offset by lower interest rates. Noninterest revenue jumped 45% to $32.4 billion. Markets revenue increased 35% to $12.1 billion.

The Commercial & Investment Bank (CIB) was the biggest engine of growth. CIB revenue rose 27% to $24.9 billion, while net income jumped 46% to $9.7 billion. Investment-banking revenue increased 45% to $3.9 billion, with investment-banking fees up 30% to $3.3 billion, reflecting stronger activity across equity and debt underwriting as well as advisory. Markets revenue climbed 35%, including an 86% surge in Equity Markets revenue to $6 billion and a 6% increase in Fixed Income Markets revenue to $6.1 billion. Banking & Payments revenue increased 21% to $11.2 billion.

JPMorgan’s consumer operations were more moderate but remained healthy. Consumer & Community Banking (CCB) revenue increased 8% to $20.3 billion, while net income rose 3% to $5.3 billion.

The Asset & Wealth Management (AWM) business also posted strong growth. Revenue rose 19% to $6.9 billion, while net income increased 33% to $2 billion. Assets under management climbed 18% to $5.1 trillion, while client assets increased 19% to $7.7 trillion, supported by higher market levels and continued net inflows.

On the balance-sheet front, JPMorgan continued to demonstrate strong underlying demand. Average firmwide loans rose 10% YOY to $1.5 trillion, while average deposits increased 7%. The bank ended the quarter with $5.0 trillion of assets, $375 billion of stockholders’ equity and a 14.1% standardized CET1 capital ratio. Tangible book value per share reached $113.35, up 10% from a year earlier.

Expenses increased alongside the stronger business environment. Noninterest expense rose 15% YOY to $27.3 billion. Additionally, the bank recorded a $149 million net reserve build, compared with $439 million a year earlier.

JPMorgan now expects 2026 net interest income, excluding Markets, to come in at $96.5 billion, while its forecast for total net interest income, including Markets, is at $105.5 billion. The bank also expects the 2026 net charge-off rate at 3.2%.

Analysts project EPS to rise by 19.4% to $24.28 for fiscal 2026, while the consensus estimate of $25.01 for fiscal 2027 indicates a rise by 3%.

What Do Analysts Expect for JPMorgan Chase & Co. Stock?

This month, Wells Fargo maintained its “Overweight” rating on JPM, while raising its price target to $390 from $375. The move reflects continued confidence in JPMorgan’s earnings momentum, particularly following its strong second-quarter performance and strength across capital markets, wealth management, and consumer banking.

Also, UBS maintained its “Buy” rating on JPM, while raising its price target to $400 from $384.

JPM stock has a consensus “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 12 recommend a “Strong Buy,” two give a “Moderate Buy,” and 11 analysts stay cautious with a “Hold” rating.

The average analyst price target for JPM is $371.65, indicating a potential upside of 4.3%. Also, the Street-high target price of $420 suggests that the stock could rally as much as 17.8%.