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The banking giant just showed off its profit engine, but now it has to prove this new power is permanent. Forget the headline beat. Yes, Bank of America (BAC)’s second-quarter numbers were solid, with earnings per share jumping 34% to $1.21 and the bank generating a stellar 17% return on tangible common equity. The market gave a polite nod, sending the stock up a respectable 1.9% on a flat day for the broader market. But the real news wasn’t in the results just posted; it was in the new bar management set for the rest of the year. This quarter was a powerful demonstration of the bank’s earnings machine, forcing a major upgrade to its own profitability targets. For an investor, this reframes the entire story. With its performance proven, the question for Bank of America shifts to whether this new, higher altitude of profitability is the new normal or just a temporary peak. This wasn't a one-off win in a single division. The performance was impressively broad. As management noted, “Every business segment generated operating leverage.” The capital markets businesses were on fire, with investment banking fees soaring 50% year-over-year to more than $2.1 billion. The sales and trading division was not far behind, pulling in $7.2 billion in revenue, a 33% increase from last year. From the main street Consumer Banking division to the towers of Wall Street, the entire franchise was humming. Here’s the number that really matters. At the start of the year, the company was guiding for full-year operating leverage of “more than 200 basis points.” After a blistering first half where that figure “exceeded 450 basis points,” management just lifted its full-year target to a range of “300-400 basis points.” That’s a large upgrade. It signals that the company’s ability to grow revenue faster than costs has become a core feature of the business model, rather than a temporary trend. This is the heart of the bull case: the scale and efficiency you’ve been paying for are finally delivering in a big way. Of course, there’s a catch. Analysts on the earnings call repeatedly poked at one key issue: the second half of the year faces much more difficult comparisons. Management was candid about it. As one executive explained, “most all of the NII build last year was in the second half of the year. We're just up against tougher comps, that's all.” This is the risk you have to weigh. The...

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The big banks have kicked off the Q2 earnings season with remarkable momentum. Both earnings and revenue growth rates—along with the percentage of companies beating expectations—are tracking significantly higher than in recent quarters. While we are still in the opening stages of the Q2 reporting cycle, these early results strongly reinforce the robust corporate earnings trend we've been seeing. For the 34 S&P 500 companies that have reported Q2 results already, total earnings are up +55.3% from the same period last year on +18.8% higher revenues, with 91.2% beating EPS estimates and 82.4% beating revenue estimates. The Q2 earnings and revenue growth rates have been boosted by Micron’s (MU) very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise). For the Finance sector, we now have Q2 results from 36.6% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +30.2% from the same period last year on +20.4% higher revenues, with all the companies beating EPS estimates and 90.9% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. The big banks and brokers kicked off the Q2 reporting cycle in style, comfortably beating consensus EPS and revenue estimates and providing reassuring reads on underlying trends in their businesses. JPMorgan’s JPM Q2 earnings increased +21.7% from the same period last year on +27.7% higher revenues, while those for Bank of America BAC, Citigroup C, and Wells Fargo WFC increased +27.5%, +45.1%, and +18.4%, respectively. Bank stocks in general and these four stocks in particular have enjoyed a decent but otherwise unspectacular run this year, as some of the earlier geopolitical risk factors have eased lately. Banks are cyclical businesses...

The 2026 Q2 earnings season is in full swing now, with many notable companies on the reporting docket in the coming days and weeks. So far, several companies, including Micron MU and Citigroup C, have been standouts, whereas preliminary results from IBM IBM have been disappointing. IBM, or International Business Machines, shares recently fell on the back of preliminary Q2 results, largely missing the mark on expectations due to weak software results. The company stated that companies swiftly adjusted their CapEx budgets toward servers, storage, and memory infrastructure ahead of expected price increases, with software becoming much less of a priority. The budget shift caught the company off guard, preventing it from closing large deals within the previously expected timeline. It explains the weaker-than-expected preliminary results and the resulting share plunge. Shares went from roughly a flat YTD performance to down more than 25%, reflecting just how eager the market has become to punish tech companies that fall short. Image Source: Zacks Investment Research In contrast, Citigroup actually came out with solid quarterly results yet again, beating the Zacks Consensus EPS estimate by more than 15% while also delivering a solid 4.5% sales surprise. While shares didn’t pop higher, that’s largely a reflection of management staying somewhat conservative in their view, with Citigroup shares already up 13% YTD and outperforming the S&P 500. The bank posted rock-solid growth, with revenue of $24.8 billion reflecting 14% YoY growth alongside a 45% YoY improvement in earnings. It saw broad-based strength from a segment standpoint, with four out of five seeing double-digit percentage revenue growth. It also raised its quarterly dividend payout by 12% and launched its $30 billion buyback program, further reflecting just how successful the quarter was. The EPS outlook for the financial titan remains bullish, with EPS expectations increasing across the board. Image Source: Zacks Investment Research We’ve all become accustomed to Micron’s legendary performance, with demand for memory solutions amid the AI frenzy driving unprecedented growth and demand for the company for some time now. Micron again crushed it in its latest release, which we count as part of the Q2 cycle, beating our consensus EPS estimate by 17% and delivering a 13% sales surprise. Sales of $41.5 billion w...

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors. It’s getting better all the time. Wall Street is celebrating a second quarter that delivered stellar earnings for banks, wirehouses and asset managers alike. With major indexes up roughly 10% so far this year, a rising tide is lifting fee revenue even as high-net-worth clients generating more wealth are increasingly looking for sophisticated advice. Things are going so well, in fact, that JPMorgan Chase CEO Jamie Dimon used his firm’s earnings call this week to make a colorful boast about his wealth unit’s leadership. “It’s a great team of people, which I am fully confident if I was hit by a truck, which is not my preference, we would be fine,” he said. Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks. READ ALSO: RIAs Excel in Client Retention but Need a Strategy for Boosting Referral Business and Prenups Are on the Rise: Here’s How to Talk About Them With Clients Dimon’s confidence is backed by hard data, a trend mirrored across the wealth management landscape. At JPMorgan alone, profit in the asset and wealth management unit surged 33% year over year to about $2 billion, pushing client assets up 19% to $7.7 trillion. Similarly, Citigroup’s wealth division marked its ninth consecutive quarter of revenue growth, with profits leaping 51% year over year to top $580 million. Almost two-thirds of the unit’s new asset growth came from deepening relationships with existing clients. That massive asset influx was a recurring theme among the wirehouses (UBS reports later this month): Morgan Stanley’s wealth and investment management businesses crossed a historic milestone, reaching $10 trillion in total client assets after pulling in a record $148 billion in net new assets this quarter, according to the firm’s earnings report on Wednesday. While just over half of those inflows stemmed from client IPOs in the firm’s workplace channel, meaning they weren’t entirely driven by traditional advised clients, the sheer scale remains impressive. Meanwhile, Bank of America’s global wealth unit, which includes both BofA Private Bank and Merrill Lynch, saw profits skyrocket a whopping 42% to $1.4 billion, fueled by $4.4 billion in management fees. Wells Fargo rode the same wave, reporting a 28% jump in wealth division profi...

Morgan Stanley reported a record $148 billion in net new assets, a 150% increase from the same period a year ago.

Jefferies rates all four money center banks Buy after Q2 beats on EPS, driven by strong NII growth, fee income, and capital markets. Goldman Sachs (GS) hit record H1 2026 markets results, while Bank of America (BAC) raised its FY26 operating leverage guidance to 300-400 bp. This lithium producer surpassed a $1B private valuation, joining some of America's most powerful startups. Now you can invest in EnergyX alongside global giants like General Motors, but only through July 16. (sponsor) As always, the quarterly earnings were kicked off by the major large-cap money center banks, and as expected they all delivered solid earnings reports. The team at Jefferies remains very positive on the four top companies that beat earnings expectations and, most importantly, provided reassuring forward guidance. Net interest income, or NII, across all banks was impressive, and with the debate over where interest rates will be as we move through the rest of 2026 remaining a wild card for all the financial giants, the second half of the year could prove interesting. The Jefferies team had this to say when discussing the results: We’re out with our thoughts following large-cap bank earnings. We highlight that results were largely positive, with all four banks beating Earnings Per Share and Pre-Provision Net Revenue expectations. Loan growth came in modestly above expectations, while deposit trends were generally stable. NII growth remained healthy, supported by strong balance sheet momentum, deposit growth, and fixed-rate asset repricing. Fee income remained constructive, benefiting from strength in payments, treasury services, securities services, wealth management, and transaction banking. Meanwhile, capital markets were a standout performer, driven by robust trading activity, improving investment banking fees, and healthy client engagement. Here are the four dividend-paying financial giants that Jefferies rates as Buy. July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX. Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040. With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a...

Citigroup Inc. C and Wells Fargo & Company WFC delivered better-than-expected second-quarter 2026 results, reflecting improving revenue trends, disciplined expense management and healthy capital positions. Despite these similarities, the two banking giants are at different stages of their growth journeys. Citigroup is gaining momentum as its multi-year restructuring begins to translate into stronger revenue growth, improved operating leverage and enhanced shareholder returns. Wells Fargo, conversely, is entering a phase of expansion after the Fed lifted its long-standing asset cap, giving the bank greater flexibility to grow its balance sheet and capitalize on improving net interest income (NII). Against this backdrop, a closer look at their business outlooks, earnings prospects, capital deployment plans and valuations helps determine which stock offers the more compelling opportunity. C and WFC are taking different approaches to strengthen their operations and unlock growth opportunities. Citigroup has strong global franchises across institutional banking, services, cards, wealth management and cross-border corporate finance. However, the bank has historically lagged peers in profitability, efficiency and shareholder returns. Its second-quarter 2026 results suggested that the multi-year turnaround is beginning to strengthen its earnings power and create room for additional investment. Under CEO Jane Fraser, Citigroup has been working to simplify the organization. This includes exiting several international consumer markets, reducing management layers, cutting costs and focusing on higher-return businesses. Driven by these initiatives, Citigroup is targeting a return on tangible common equity (ROTCE) of 10-11% in 2026. Conversely, Wells Fargo has been exiting non-core, lower-return businesses to sharpen its focus on consumer banking, commercial lending, and other high-return areas. Under CEO Charlie Scharf since 2019, the strategy targets up to $10 billion in annual cost cuts and capital reallocation to core franchises. The removal of asset cap in 2025 eliminates a long-standing constraint on balance-sheet expansion, allowing the company to grow deposits, increase loan balances and expand securities holdings, thereby unlocking its full operating potential. With greater strategic flexibility and improved earnings visibility, WFC expects its medium-term ROTCE...

Chicago, IL – July 16, 2026– Zacks Director of Research Sheraz Mian says, "Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise)." Note: The following is an excerpt from this week'sEarnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The big banks have kicked off the Q2 earnings season with remarkable momentum. Both earnings and revenue growth rates—along with the percentage of companies beating expectations—are tracking significantly higher than in recent quarters. While we are still in the opening stages of the Q2 reporting cycle, these early results strongly reinforce the robust corporate earnings trend we've been seeing. For the 34 S&P 500 companies that have reported Q2 results already, total earnings are up +55.3% from the same period last year on +18.8% higher revenues, with 91.2% beating EPS estimates and 82.4% beating revenue estimates. The Q2 earnings and revenue growth rates have been boosted by Micron's MU very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise). For the Finance sector, we now have Q2 results from 36.6% of the sector's market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +30.2% from the same period last year on +20.4% higher revenues, with all the companies beating EPS estimates and 90.9% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. The big banks and brokers kicked off the Q2 reporting cycle in style, comfortably beating consensus EPS and revenue estimates and providing reassuring reads on underlying trends in their businesses.JPMorgan's JPM Q2 earnings increased +21.7% from the same period last year on +27.7% higher revenues, while those for Bank of America BAC, Citigroup C and Wells Fargo WFC increased +27.5...

Morgan Stanley's (MS) second-quarter revenue surpassed Wall Street's projections, with robust invest

Citigroup's (C) better-than-expected Q2 results, with the bank delivering its best quarterly revenue

(Updates to specify revenue beat in the headline.) Morgan Stanley's (MS) second-quarter revenue s

Wall Street cleared this earnings season’s first major hurdle with room to spare, as the nation’s biggest banks pummeled profit forecasts. “Bank earnings are often described as a scoreboard for the financial sector,” said Ruben Dalfovo, investment strategist at Saxo Bank. “They are more useful as an economic medical examination, and the early numbers suggest the patient remains active, and dealmaking appears healthier.”