JPM

JPMorgan Chase stock has delivered a strong run over the past three years, while current checks suggest the market price is roughly in line with traditional earnings multiples but below some intrinsic value estimates. That mix leaves investors weighing a rich recent share performance against signals that still point to possible undervaluation on certain models. JPMorgan Chase has returned 158.6% over the past three years, which puts recent valuation questions in the context of a stock that has already created substantial shareholder value over this period. Recent news around a possible JPMorgan stablecoin and broader balance sheet strength can support expectations for future cash generation, while ongoing regulatory debates on capital rules and legal actions may weigh on how much investors are willing to pay for that outlook. The Excess Returns intrinsic value estimate sits about 27.4% above the current share price, while the earnings multiple checks look about right and the broader valuation score of 3 out of 6 points to a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether JPMorgan Chase’s current price already reflects its strengths and recent gains, or if the gap to the intrinsic value estimate leaves enough potential upside to interest new buyers. Scan hand picked 46 high quality undervalued stocks that, like JPMorgan Chase, combine solid balance sheets with valuations that screening models flag as potentially out of step with current market pricing. The Excess Returns model looks at what JPMorgan Chase can earn on its equity above the cost of that equity and then capitalizes those surplus profits. For this stock, the inputs lean on analyst expectations for both earnings power and balance sheet growth rather than detailed cash flow forecasts. JPMorgan Chase is modeled with book value of $133.01 per share, rising toward a stable book value of $148.16 per share, and a stable EPS estimate of $26.62 per share supported by forecasts from 13 analysts. The model assumes an average return on equity of 17.96% and a cost of equity of $11.90 per share, which implies an excess return of $14.72 per share on the capital invested. On these assumptions, the Excess Returns valuation points to an intrinsic value of about $487.85 per share, which is 27.4% above the recent share price, so the stock screens as undervalued on this framework. JPMorgan’s potential move into a broader stablecoin offering helps explain why some investors may still see upside even after a strong share price run. On the Excess Returns model, JPMorgan Chase stock currently looks undervalued relative to the earnings power implied by its equity base. Our Excess Returns analysis suggests JPMorgan Chase is undervalued by 27.4%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for JPMorgan Chase. P/E is usually the cleanest way to compare a large, profitable bank like JPMorgan Chase with its sector. On this measure, JPMorgan trades on about 14.8x earnings, which is above both the Banks industry average of roughly 11.8x and the peer group average of about 13.0x. That premium lines up with the bank’s scale, diversified revenue base and strong balance sheet. Investors often point to these factors when explaining why the stock can command richer earnings multiples than many rivals. The Fair P/E ratio implied by the model is 15.7x, only slightly above the current 14.8x. That small gap suggests the market is already pricing in much of what the model assumes about JPMorgan’s growth profile, profitability and risk, without stretching to extreme optimism. The result is a valuation that looks neither especially cheap nor stretched on earnings compared with what the tailored Fair P/E would suggest. On the P/E multiple, JPMorgan Chase stock currently appears priced at roughly a fair level. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation checks leave off for JPMorgan Chase. They spell out which assumptions about JPMorgan Chase's future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price. Each one presents fair value as a thesis about the business that you can revisit over time, rather than a single static number. These live on Simply Wall St's Community page. Community views on JPMorgan Chase are wide apart, with one side focused on fee driven growth and tech upside and the other focused on margin pressure and credit risk. Bull case: 5% undervalued Read the full Bull Case to see why JPMorgan Chase could be undervalued Bear case: 12% overvalued Read the full Bear Case to see why JPMorgan Chase could be overvalued Do you think there's more to the story for JPMorgan Chase? Head over to our Community to see what others are saying! The Excess Returns intrinsic value estimate still points to JPMorgan Chase as undervalued, reflecting confidence in the earnings power supported by its equity base. The P/E view appears roughly in line with the market, so the broader picture is mixed rather than indicating a clear discount. That difference depends on how much weight investors place on long-term profitability compared with current market expectations and sentiment around large banks. A key factor from here is whether JPMorgan Chase can convert its technology and payments initiatives into durable returns without credit or regulatory risks eroding that potential. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include JPM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. IREN (NASDAQ:IREN) heads into fiscal fourth-quarter earnings Thursday with JPMorgan (NYSE:JPM) maintaining a Sell rating and $46 price target, as the former Bitcoin miner races to transform itself into a major AI infrastructure provider. Analyst Richard Choe's concern centers on whether customer contracts can keep pace with IREN's enormous GPU expansion and financing needs, making Thursday's update an important test of one of the market's most aggressive AI buildouts. Warning! GuruFocus has detected 8 Warning Sign with JPM. Is JPM fairly valued? Test your thesis with our free DCF calculator. IREN operates large-scale data centers and GPU clusters used for AI training and inference, supported by its portfolio of grid-connected land and power. Bitcoin mining remains part of the business, but AI Cloud is increasingly central to its growth strategy. The scale of that transition has increased dramatically. IREN announced in July that it had signed $2.8 billion of additional contracts with AI developers and raised its targeted year-end AI Cloud annualized run-rate revenue to more than $4 billion. About 85% of that targeted ARR was under contract at the time. But that still leaves capacity requiring customers, which helps explain JPMorgan's caution. IREN is spending heavily to get ahead of AI compute demand. The company said in March that it had secured more than $9.3 billion of funding while expanding toward a 150,000-GPU fleet, with roughly $3.5 billion of additional capital spending expected for those orders. It later secured a $3.65 billion GPU financing facility supporting its Microsoft contract. That capital intensity puts more pressure on management to keep signing customers and bringing capacity online on schedule. Thursday's results, due after the closing bell with a 5 p.m. ET call, should be judged less on one quarter's earnings and more on whether IREN can de-risk its AI expansion. Investors should watch contracted AI Cloud ARR, GPU deployment schedules, utilization, capital spending and financing requirements. The strongest rebuttal to JPMorgan would be another increase in contracted capacity without significantly greater balance-sheet risk. Conversely, slower customer signings, deployment delays or additional financing needs would reinforce the concern that IREN is building AI capacity faster than demand is becoming contractually committed.

Morgan Stanley MS delivered a strong first half of 2026, with net revenues rising 21% year over year to $41.93 billion and net income jumping 42% to $11.15 billion. Earnings per share increased 46% to $6.90, while the return on tangible common equity (ROTCE) improved to 26.8% from 20.6% in the prior-year period.The Institutional Securities (IS) segment was the major growth driver, supported by robust investment banking (IB) and trading activity. IB revenues rose 47% year over year, aided by stronger M&A advisory and underwriting volumes, while trading revenues increased 36% on higher client activity. The momentum was particularly evident in the second quarter of this year, when IS segment revenues jumped to a record $11 billion.The Wealth Management (WM) segment also delivered solid growth in the six months ended June 30, 2026, supported by higher asset levels, fee-based inflows, lending activity and client engagement. Second-quarter revenues reached a record $8.9 billion, while the business attracted $148 billion of net new assets. Investment Management (IM) also benefited from higher assets under management (AUM) and positive flows.Overall, Morgan Stanley’s improving efficiency, strong asset gathering and solid capital position drove its impressive first-half results. Supported by this robust performance, along with improving investor sentiment, resilient U.S. consumer spending and continued heightened market activity, MS shares have gained 22.1% year to date, outperforming the S&P 500 Index’s 11.5% growth and the industry’s 11% rise.If we compare MS’ price performance with two of its closest peers, JPMorgan JPM and Goldman Sachs GS, it appears that MS has outperformed both JPMorgan and Goldman Sachs. So far this year, shares of JPMorgan have gained 10.7% and Goldman Sachs stock has rallied 20.5%. Image Source: Zacks Investment Research Given the impressive price performance, investors might be tempted to invest in the MS stock now. But before making any investment decision, investors should assess whether there is further upside left in the stock despite risks from market volatility. In order to understand this, let us dig deep into the company’s fundamental strengths and growth prospects. Improving Diversification: Morgan Stanley has continuously been trying to reduce its reliance on capital markets, which it has been achieving by expanding wealth and asset management. Also, it has been using acquisitions (Eaton Vance, E*Trade Financial, Shareworks and EquityZen) to broaden its mix and have a more balanced revenue stream across market cycles. The wealth and asset management businesses continue to broaden the company’s revenue base and deepen client relationships.Both businesses’ aggregate contribution to total net revenues jumped to almost 54% in 2025 from 26% in 2010. The WM segment’s total client assets witnessed a five-year (2020-2025) compound annual growth rate (CAGR) of 13%, while the IM segment’s total AUM saw a CAGR of 19.4%.As of June 30, 2026, total client assets across both segments were $10 trillion, reaching a milestone. This progress reflects strong momentum across Morgan Stanley’s advisor-led, workplace and self-directed platforms, while highlighting its expanding scale in the retirement savings market. The trend is likely to continue in the near term as the operating environment becomes more favorable.IB Recovery: After the deal slowdown that weighed on results in 2022 and 2023, Morgan Stanley's IB franchise continues to recover as issuance and strategic activity improve. IB fees rose 35% in 2024 and 23% in 2025 as boardroom confidence improved and issuance reopened. As mentioned above, the upward momentum carried into the first half of 2026.Looking ahead, the company is well-positioned to benefit from a healthier deal environment, supported by a robust and diversified pipeline across regions and sectors. Momentum is expanding beyond the Americas into Asia and EMEA, while active M&A and IPO markets, together with the company’s strong competitive position, should support further growth as the macroeconomic backdrop evolves.  Expanding Global Reach: Morgan Stanley’s alliance with Mitsubishi UFJ Financial Group continues to enhance its competitive position in Japan through combined research, sales and execution and coordinated underwriting. This supports a durable franchise in a key market and helps extend coverage across the region.Asia revenues were $9.42 billion in 2025, up 23% year over year. The momentum carried into the first six months of 2026, aided by stronger client engagement, favorable market conditions and higher prime brokerage activity in the region.The company's global platform is increasingly relevant as capital markets activity broadens outside the United States and across Japan, India, China, Korea, Taiwan and Hong Kong. Continued investment in regional leadership and collaboration should support wallet share gains across Asia's capital markets and wealth opportunity set.Robust Balance Sheet Position: As of June 30, 2026, the company had long-term debt of $383.2 billion, with $34.3 billion expected to mature over the next 12 months. The company’s average liquidity resources were $404.1 billion as of the same date.Given its solid liquidity position and earnings strength, Morgan Stanley has been engaged in efficient capital distribution activities, through which it enhances shareholder value.Following the clearance of the 2026 stress test, the company increased its quarterly dividend 15% to $1.15 per share. Before this, the company had hiked its quarterly dividend 8% in 2025. Also, its board of directors has reauthorized a multi-year share repurchase program of up to $20 billion, without an expiration date. Management continues to emphasize disciplined capital allocation, with a preference for organic investment, capital returns and selective bolt-on acquisitions only where strategic and cultural fit are strong. On a valuation basis, shares of Morgan Stanley appear to be trading at a premium relative to the industry. The company’s forward 12-month price/earnings (P/E) ratio of 16.72 is above the industry average of 13.97. Image Source: Zacks Investment Research JPMorgan has a P/E (F12M) ratio of 14.28, and Goldman Sachs has a forward 12-month P/E ratio of 14.89. Thus, Morgan Stanley is overvalued compared with its two closest peers as well.If we look at Morgan Stanley’s earnings estimate revisions, it appears that analysts are optimistic regarding the company’s growth. Over the past 30 days, the Zacks Consensus Estimate for the company’s 2026 and 2027 earnings has been revised upward. The earnings estimate for 2026 of $12.79 indicates a rise of 25.3% from that reported in the previous year. The 2027 estimate of $13.06 suggests year-over-year growth of 2.1%. Image Source: Zacks Investment Research Morgan Stanley’s continued efforts to reduce the dependence on volatile capital markets-driven revenues by strengthening its wealth management and investment management businesses will continue to support growth in the long run because these segments generate more stable, recurring fee income.Its solid balance sheet and strong capital position provide flexibility to invest in growth initiatives, pursue strategic opportunities and return capital to shareholders.The company’s premium valuation seems justified by its business transformation and strong earnings stability. With multiple growth levers in place, including expansion in fee-based businesses, disciplined cost management and strategic investments, the company appears well-positioned to sustain financial performance and deliver stable revenue growth over the long term, making it an attractive investment option now.Currently, Morgan Stanley sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Morgan Stanley (MS) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, August 21, 2026--(BUSINESS WIRE)--JPMorgan Chase Financial Company LLC announced today the quarterly coupon amount for the Alerian MLP Index ETN (NYSE Arca: AMJB). The table below summarizes the coupon amount for the Alerian MLP Index ETN due January 28, 2044 (the "Notes"). 1) As defined in the pricing supplement, dated April 17, 2026, for the Notes. You may access this pricing supplement as follows:https://www.sec.gov/Archives/edgar/data/19617/000121390026045285/ea0286120-01_424b2.htm 2) "Current Yield" equals the current Coupon Amount annualized and divided by the closing price of the Notes on Aug 18, 2026, and rounded to one decimal place for ease of analysis. The Current Yield is not indicative of future coupon payments, if any, on the Notes. The Notes are senior, unsecured obligations of JPMorgan Chase Financial Company LLC, the payment of which is fully and unconditionally guaranteed by JPMorgan Chase & Co. About JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorgan Chase had $5.0 trillion in assets and $375.0 billion in stockholders’ equity as of June 30, 2026. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. Investment suitability must be determined individually for each investor, and the Notes may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own advisors as to these matters. JPMorgan Chase & Co. and JPMorgan Chase Financial Company LLC have filed a registration statement (including a prospectus) with the SEC for any offerings to which these materials relate. Before you invest, you should read the prospectus in that registration statement and the other documents relating to any offerings to which these materials relate that JPMorgan Chase & Co. and JPMorgan Chase Financial Company LLC have filed with the SEC for more complete information about JPMorgan Chase & Co., JPMorgan Chase Financial Company LLC and any offering to which these materials relate. You may get these documents without cost by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, JPMorgan Chase & Co., JPMorgan Chase Financial Company LLC or any agent or any dealer participating in the any offerings to which these materials relate will arrange to send you the prospectus and each prospectus supplement as well as any product supplement, underlying supplement and preliminary pricing supplement if you so request by calling toll-free 1-800-576-3529. View source version on businesswire.com: https://www.businesswire.com/news/home/20260821305533/en/ Contacts Questions? Contact: JPMorgan Alerian ETN team, 1-800-576-3529 [email protected]

(Bloomberg) -- Alibaba Group Holding Ltd. is reclaiming its place as one of investors’ favorite Chinese technology stocks, on bets it can beat rivals in the combative artificial intelligence market. Most Read from Bloomberg Bessent Deploys Debt Buybacks in Sign of Concern Over Yield Rise Natalie Harp, Trump’s Gatekeeper, Is at Center of Senator Jon Ossoff Clash Moderna and Merck Revive mRNA Hopes With Melanoma Success PlayStation Reboots ‘Horizon Hunters Gathering’ as Live-Service Strategy Struggles US Set to Cut Tariffs on Canada Metals, Autos in Trade Deal Its shares have surged 36% in Hong Kong this quarter, topping the Hang Seng Tech Index in a rally ahead of its results due later Thursday. Alibaba is on track for its biggest quarterly outperformance against Tencent Holdings Ltd. since early 2025. A key difference is that Tencent is focusing its AI strategy on its social media and content businesses while Alibaba spends heavily across its generative model, cloud and chip operations. Alibaba has also started to see accelerating cloud growth. It’s even starting to steal back the spotlight from upstart model makers like Z.AI Co. that captured attention earlier this year. “Alibaba’s AI investments have been effective in reviving both investor interest in the stock and user engagement across its broader ecosystem,” said Gary Tan, a portfolio manager at Allspring Global Investments. Clear chances for the company to make money have “helped rekindle investor interest,” he said. Alibaba was an early winner in China’s AI stock boom but fell behind as competitors gained attention with new listings and technological breakthroughs. Its resurgence comes as a global rush to China’s cheaper AI offerings helps its open-weight Qwen models gain traction with users. Advances in the AI arena have also helped Alibaba reframe its narrative from an online retail giant struggling with sluggish domestic consumption to a winning technology platform. The company is expected to report 8.4% growth in revenue for the June quarter, the fastest in almost three years, according to data compiled by Bloomberg. Analysts project a profit decline amid continued huge outlays on its various businesses. Among peers, Tencent and Baidu Inc. saw their stocks decline in the wake of recent results, which disappointed the market. Alibaba’s earnings may be “better than feared” thanks to narrower losses tied to food delivery and quick commerce investment, along with revenue acceleration and margin increase in its cloud business, JPMorgan Chase & Co. analyst Alex Yao wrote in note. Shares of Alibaba rose as much as 2.3% in Hong Kong on Thursday ahead of its results. Traders have been applauding its AI shift, awarding the stock a consistent valuation premium to Tencent’s this year for the first time in more than a decade. Rapid rollouts from DeepSeek’s V4 to Moonshot AI Inc.’s Kimi K3 are said to be creating a “model‑agnostic” landscape where enterprises pick and choose among different systems based on cost and performance. As such, the battleground is seen shifting to platforms and infrastructure, where Alibaba is seen with an advantage. The company’s cloud operation has established a lead over competitors, with estimates from research Omdia showing it with 37% market share in the fourth quarter of 2025, compared with 17% for Huawei Technologies Co. and 10% for Tencent. Alibaba also designs some of its own chips. That’s on top of its vast product offerings, from the Qwen app for consumers to coding tools and enterprise agents for developers. “We believe long-term success will require immense resources and a loyal customer base,” Citigroup Inc. analyst Alicia Yap wrote in note. “Consequently, companies with full-stack capabilities, from chips and cloud infrastructure to models and applications, like Alibaba, are better positioned to lead.” (Updates data as of Thursday’s early trading) Most Read from Bloomberg Businessweek The Diamond Industry’s Old Guard Wants You to Buy ‘Natural’ The Midwest City Keeping the American Dream Alive for First-Time Homebuyers China’s Chip Industry Is Having a Breakout Moment The Seniors Against Senior Housing Big Pharma Is Hooked on Chinese Licensing Deals ©2026 Bloomberg L.P.

JPMorgan JPM raised its 2026 net interest income (NII) outlook after a strong second quarter, signaling that balance sheet growth is helping offset what was previously expected to be a more pronounced rate-driven headwind. The update comes at a time when the Federal Reserve has paused its easing cycle and adopted a more hawkish tone, citing persistent inflation pressures.The bank now expects NII of about $105.5 billion, up from the previously targeted $103 billion. NII excluding Markets is projected at approximately $96.5 billion compared with the earlier estimate of $95 billion. The upward revision is notable because it suggests JPMorgan is less exposed to near-term rate uncertainty than initially assumed.The macro backdrop is important here. With the Fed signaling that rates may stay higher for longer or even move higher if inflation re-accelerates, banks face a more complex environment. While higher rates can support asset yields, they also risk slowing loan demand and increasing deposit competition. JPMorgan’s guidance implies that strong loan growth and resilient deposit inflows are currently outweighing those pressures.In the second quarter, average loans rose 10% year over year and deposits increased 7%, helping stabilize NII even as earlier expectations assumed rate cuts would weigh on earnings. Growth in card revolving balances and wholesale lending also provided support. However, the higher NII outlook will not fully translate into profit expansion. JPM also raised its 2026 adjusted expense forecast to about $107.5 billion, reflecting higher activity-driven costs.The revised outlook highlights JPMorgan’s ability to generate earnings resilience in a “higher-for-longer” rate environment. Still, the key variables for investors remain the Fed’s inflation response, deposit pricing dynamics, and whether loan growth can continue if financial conditions tighten further. Two peers of JPMorgan are Citigroup C and Bank of America BAC. Citigroup’s NII recorded a three-year CAGR of 6.2% through 2025, with the uptrend continuing in the first half of 2026. The company continues to witness solid growth in loan and deposit balances. Citigroup expects NII, excluding Markets, to increase 5-6% in 2026, supported by loan growth and stabilizing funding dynamics.Bank of America is well-positioned to deliver continued growth in NII. Over 2020–2025, NII witnessed a CAGR of 6.7%, with the momentum extending into the first half of 2026. Bank of America expects 2026 NII (FTE) to grow at the upper end of the 6-8% range, reflecting confidence in the durability of this revenue stream. JPM’s shares have gained 10.9% so far this year. Image Source: Zacks Investment Research From a valuation standpoint, JPMorgan trades at a 12-month trailing price-to-tangible book (P/TB) of 3.33X, above the industry average. Image Source: Zacks Investment Research The Zacks Consensus Estimate for JPMorgan's 2026 earnings suggests a 22.6% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 0.3%. In the past month, earnings estimates for 2026 and 2027 have moved upward to $24.93 and $25.02, respectively. Image Source: Zacks Investment Research JPMorgan currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

JPMorgan has increased its 2026 S&P 500 price target to 8,000 from 7,800, pointing to an exceptionally strong second-quarter earnings season and growing evidence that massive artificial intelligence investments are translating into stronger business performance. The bank also raised its earnings forecasts for both 2026 and 2027, although elevated interest rates, geopolitical risks and heavy capital-market supply are keeping its valuation assumptions in check. With 87% of S&P 500 companies having released their results, JPMorgan strategists led by Dubravko Lakos-Bujas said the earnings picture “remains strong and broad-based across multiple sectors.” The strength has encouraged the bank to lift its 2026 earnings-per-share forecast to $365, representing growth of 35% from the previous year. That estimate also stands above the current consensus forecast of $358. For 2027, JPMorgan increased its EPS projection to $420, implying another 15% increase. Part of the unusually strong earnings growth is coming from gains in the value of private-company investments held by listed businesses. JPMorgan estimates that these valuation adjustments contributed approximately $18 to S&P 500 EPS based on marks recorded during the first half of 2026. Removing that effect would leave normalised 2026 EPS at approximately $347. Even on that adjusted basis, earnings would still be growing around 28% year over year, highlighting the underlying strength of corporate profitability. Despite what JPMorgan described as “one of the strongest fundamental backdrops since GFC,” the bank has not increased the forward valuation multiple supporting its S&P 500 target. Its assumption remains at approximately 20 times forward earnings. Several risks are preventing the strategists from assigning a higher multiple, including interest rates remaining elevated for longer, continuing geopolitical uncertainty and substantial amounts of new equity and debt that financial markets still need to absorb. Instead, the higher index target is primarily being driven by stronger earnings expectations. One of the biggest developments during earnings season has been the changing conversation surrounding hyperscaler artificial intelligence investment. Investors have increasingly shifted their attention from the scale of AI capital expenditure towards whether that spending can produce attractive returns on invested capital. JPMorgan believes the latest results provided encouraging evidence that monetisation is beginning to emerge. The strongest examples came from Google, Amazon and Microsoft, where “stronger cloud growth, backlog expansion, and improved operating cash flow visibility cleared a high investor expectation bar.” The scale of investment continues to increase rapidly. Consensus forecasts now indicate that AI-related capital expenditure could reach approximately $900 billion by the end of 2026. That would represent an increase of around 85% year over year. Spending is then expected to exceed $1.2 trillion by the end of 2027 as hyperscalers continue expanding data centres and computing infrastructure. These enormous investment programmes remain a central driver of demand across semiconductors, networking equipment, power infrastructure, cooling systems and other parts of the AI supply chain. Cloud growth rates provided some of the clearest evidence that AI investment is translating into stronger customer demand. AWS revenue growth accelerated to 37% year over year, while Microsoft’s Azure expanded 43%. Google Cloud delivered the strongest increase, with revenue climbing a record 82%. Backlogs also expanded sharply. Google Cloud’s backlog increased by $52 billion from the previous quarter to $514 billion. AWS backlog reached $496 billion, representing a 36% sequential increase and almost 2.5 times its level from a year earlier. The figures provide hyperscalers with substantial revenue visibility as they continue investing heavily in additional capacity. While revenue and earnings trends remain impressive, JPMorgan highlighted a growing divergence between hyperscaler profits and free cash flow. Trailing-12-month net income across the group has reached $599 billion, compared with only $169 billion of free cash flow. That creates a $430 billion gap. The contrast with the end of 2023 is particularly significant, when net income and free cash flow were approximately equal. The deterioration largely reflects the enormous capital requirements associated with building AI infrastructure. JPMorgan expects the pressure on cash generation to persist as AI investment continues accelerating. With the exception of Microsoft, the bank’s analysts forecast negative free cash flow for most hyperscalers during the 2026-2027 period. That could increase reliance on debt markets, equity issuance or other financing sources to support investment programmes. However, the combination of accelerating cloud growth, rapidly expanding backlogs and improved operating cash flow visibility suggests the enormous spending programmes are increasingly producing measurable commercial returns. JPMorgan’s higher S&P 500 target ultimately reflects stronger corporate earnings rather than a willingness to pay substantially higher valuations. The bank now expects 2026 EPS of $365 and 2027 EPS of $420, while retaining a forward multiple of roughly 20 times. AI remains central to the outlook. Rapid cloud growth and record backlogs are strengthening confidence that hyperscalers can monetise their enormous infrastructure investments, although declining free cash flow remains an important risk. Against that backdrop, JPMorgan now sees the S&P 500 reaching 8,000 in 2026, up from its previous target of 7,800. Get stock prices from InvestorsHub

(Bloomberg) -- Anthropic PBC is telling prospective investors its second-quarter revenue jumped at least 14-fold versus the same period a year ago, according to documents seen by Bloomberg News. Most Read from Bloomberg US Readies Unprecedented ‘Economic Isolation’ Plan for Iran Selena Gomez Accused of Fraud by Mental-Health Startup Investors Costliest US Bond Sale Since 2001 Is Investor Warning to Bessent OpenAI’s Annualized Revenue Tops $40 Billion Ahead of IPO Walter Sells Lakers, Seeks More Cash to Pay Loans Amid DOJ Probe The Claude chatbot maker reported a preliminary revenue figure of more than $11.5 billion in its latest completed quarter, compared to $787 million in the corresponding period in 2025, and $4.73 billion in the first quarter of this year, the documents show. The second quarter of 2026 saw Anthropic report positive adjusted operating income, according to the documents. Deliberations are ongoing and the figures could be revised. A representative for Anthropic declined to comment. The rapid growth comes as the company battles its longtime rival OpenAI to win over corporate customers. Once considered an underdog in the artificial intelligence race, Anthropic has seen a surge in professionals adopting its software to streamline tasks including coding. Anthropic’s annualized revenue or run rate crossed $47 billion in May. OpenAI has an annual run rate of over $40 billion, Bloomberg News reported, though the two figures may not be calculated the same way. The company is meeting with investors ahead of its potential mega-IPO, people familiar with the matter said in July. Anthropic filed confidentially for a listing, and is working with Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. on the IPO, Bloomberg News has reported. Anthropic is seeking to tap the public market’s ample funding capacity to maintain its lead over OpenAI and others, as AI companies spend hundreds of billions of dollars to develop the most cutting-edge models. An IPO this fall would see Anthropic debut not only before OpenAI but also before DeepSeek, the Chinese AI firm that has been grabbing an increasing share of the market for the technology. DeepSeek is preparing for an IPO and could file as soon as this year, people familiar with the matter have said. The AI race has fired up the IPO market, with listings this year raising $256.4 billion, excluding blank-check firms and other financial vehicles, according to data compiled by Bloomberg. That’s the most raised in a year since 2021, the data show. --With assistance from Shirin Ghaffary. Most Read from Bloomberg Businessweek The Optimization Backlash Has Begun The Midwest City Keeping the American Dream Alive for First-Time Homebuyers The Steamy, Magical and Now Very Lucrative Romantasy Business AI Music Startup Suno Bets Anyone Can Be a Rock Star With EV Sales Slowing, Hybrid Cars Are Hot Again ©2026 Bloomberg L.P.

Interested in Portman Ridge Finance Corporation? Here are five stocks we like better. Net asset value declined to $14.49 per share from $15.60, largely due to unrealized markdowns tied to software-sector valuation pressure. Management said the markdowns generally did not reflect fundamental credit deterioration. The company continued to delever its balance sheet: borrowings fell to $286.1 million, gross leverage improved to 1.6 times, and asset coverage rose to 162%. After quarter-end, it expanded and amended its KeyBank facility to $150 million and used it to terminate the JPMorgan Great Lakes facility. Portfolio credit quality improved, with non-accrual investments falling to 5.7% of amortized cost from 6.2%. Investment activity remained selective, with $20.9 million of originations versus $34.9 million of repayments and sales, leaving the company in a net-repayment position. BCP Investment Corporation reported second-quarter results marked by lower net asset value, continued deleveraging and an improvement in its non-accrual portfolio. Management also detailed a post-quarter-end amendment and expansion of its KeyBank credit facility, which was used to repay and terminate the company’s Great Lakes revolving credit facility with JPMorgan. Chief Executive Officer Ted Goldthorpe said the company continued to strengthen its balance sheet, reposition its portfolio and improve asset coverage during the quarter. Total investment income was $15.2 million, while net investment income was $5.5 million, or $0.45 per share. Core net investment income totaled $3.3 million, or $0.27 per share. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company paid total distributions of $0.30 per share during the quarter, consisting of a $0.27 base distribution and a $0.03 supplemental distribution. It is paying monthly base distributions of $0.09 per share for July through September, and its board approved a fourth-quarter base distribution of $0.27 per share, payable in monthly $0.09 installments during October, November and December. Net asset value fell to $179.5 million, or $14.49 per share, as of June 30, from $193 million, or $15.60 per share, at the end of the first quarter. Goldthorpe said the decline was predominantly driven by unrealized mark-to-market movements across the portfolio. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Software investments represented about 34% of unrealized markdowns during the quarter, or about 47% when including software-exposed companies. Goldthorpe said management believed most of the markdowns reflected sector-specific valuation pressure and broader market dislocation rather than fundamental credit deterioration. Goldthorpe said approximately 93.5% of the company’s software exposure was internally assessed as having low to medium AI impact and was concentrated in businesses with proprietary data, embedded workflows, high switching costs and vertical-market specialization. He added that the company views its software positions as senior secured investments with contracted cash flows and covenant protections. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Financial Officer Brandon Satoren said the company recorded a $10.5 million net realized loss, primarily related to the resolution of two investments previously on non-accrual and carried at substantial discounts to cost. The losses had been substantially reflected in NAV in prior periods. The company also recorded a $0.4 million realized loss on debt extinguishment related to the partial redemption of its 2026 notes. During the quarter, BCP Investment Corporation used proceeds from $50 million of 7.5% notes due 2029, issued in March, to redeem $40 million of 2026 notes at par. It also reduced borrowings under its revolving facilities. Total outstanding borrowings declined to $286.1 million as of June 30 from $342.2 million at the end of March. The company’s asset coverage ratio improved to 162% from 156%, while gross leverage declined to 1.6 times from 1.8 times. Satoren said total borrowings carried a weighted-average contractual interest rate of about 7% at quarter-end, and the company had $86 million of available borrowing capacity under its senior secured revolving facilities, subject to borrowing-base restrictions. After quarter-end, the company amended its KeyBank credit facility by reducing borrowing spreads by 30 basis points during the reinvestment period, extending the reinvestment period and maturity by two years, and increasing committed capacity to $150 million from $75 million. Borrowings under the expanded KeyBank facility were used to repay the JPMorgan Great Lakes facility in full, and the Great Lakes facility was terminated. Chief Investment Officer Patrick Schafer said investment activity remained measured amid low market activity and macroeconomic uncertainty. The company completed three new portfolio-company investments and four follow-on investments during the quarter. Originations totaled $20.9 million, while repayments and sales totaled $34.9 million, producing net repayments and sales of about $14 million. More than half of originations by dollar amount involved increasing exposure to existing portfolio companies that were performing well, Schafer said. The yield on par value of new debt investments was 13.3%, compared with a 12.2% weighted-average annualized yield for the portfolio excluding non-accruals and CLOs as of June 30. The debt portfolio, excluding CLO funds, equities and joint ventures, totaled $349.7 million at fair value and was spread across 71 portfolio companies in 33 industries. The company’s non-accrual investments declined to 11 investments across seven portfolio companies, representing 5.7% of the portfolio at amortized cost, compared with 12 investments across nine companies and 6.2% of amortized cost in the first quarter. In response to analyst questions, Schafer said management expects to remain in a net-repayment position as it seeks to use repayments to further reduce leverage while remaining selective on new investments. He said many current opportunities involve business services, distribution companies and other businesses viewed as having lower AI risk, with financing proceeds generally supporting acquisitions rather than refinancings. Portman Ridge Finance (NASDAQ: PTMN) is a publicly traded, closed-end management investment company that has elected to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. Since its formation in 2015, the firm has focused on providing customized financing solutions to U.S. middle-market companies, including senior secured loans, unitranche instruments, mezzanine debt and select equity co‐investments. Its flexible approach allows Portman Ridge to structure transactions that address a range of sponsor-backed and privately negotiated financing needs. The company's portfolio spans a variety of industry sectors such as healthcare, business services, consumer goods and industrials. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Portman Ridge Finance Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is focused on resolving legacy office and retail loans to unlock capital, successfully completing a Chicago retail resolution above carrying value and selling Dallas office participation interests in the low 90s. The company is actively reducing its cost of funds by transitioning assets from legacy CLOs to an upsized JPMorgan financing facility, lowering the rate from SOFR plus 238 to SOFR plus 200. U.S. commercial real estate fundamentals are improving, but geopolitical tensions and inflation concerns have shifted market expectations from near-term rate cuts to potential hikes, creating property value headwinds. Loan demand is broadening due to a pickup in acquisition activity and the first net increase in bank demand since 2022, though volatility has delayed some individual asset sales. Reserves increased this quarter due to a more negative macroeconomic forecast in the general reserve model and specific price discovery during active loan resolution processes. Management believes the current market valuation does not reflect the underlying asset value and intends to narrow this gap through disciplined execution and opportunistic REO exits. The total loan portfolio balance is expected to trend lower until the end of 2026, at which point the company intends to restart origination efforts and begin regrowing the portfolio. Management plans to restart origination efforts toward the end of the year to take advantage of attractive investment opportunities and begin regrowing the portfolio. The company targets the sale of its Miami Beach REO office property during the second half of 2026, following positive leasing momentum in a robust market. Future interest expense is projected to decrease by approximately $2 million annually following the refinancing of legacy CLO assets at more favorable terms. Capital allocation remains focused on paying down higher-cost debt and resolving non-accrual loans before redeploying capital into higher-earning new investments. A $65 million San Diego office loan was downgraded to risk rating 5 after the borrower abandoned a hotel redevelopment plan due to rising construction and financing costs. The company updated its financial covenants, reducing the minimum tangible net worth requirement from $600 million to $500 million and the minimum unrestricted cash covenant from $30 million to $20 million. Management acknowledged a potential risk of temporarily falling below the $20 million cash covenant later this year but outlined mitigation plans including anticipated loan repayments and sales. Specific CECL reserves now represent 47.4% of the unpaid principal balance for risk-rated 5 loans, which management believes appropriately reflects current market realities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The loan was downgraded because the institutional owner and hotel brand partner decided not to commit further equity as rising costs made the original redevelopment plan difficult. Occupancy is intentionally low as the property was being held for a hotel and mixed-use conversion rather than traditional office use. The Miami Beach office property is currently under contract for sale following strong leasing traction in a robust local market. Management expects to finalize the sale during the second half of 2026. Management deflected a specific commitment on the dividend, stating that the Board evaluates all competing uses of capital quarter-to-quarter. No final determination has been made regarding future dividend levels as the portfolio balance trends lower. The decline in cash from $58.5 million to $35.7 million was driven by reduced borrowings in the CLO refi, facility fees, and dividend payments. Management expressed confidence in remaining above the new $20 million minimum cash covenant, citing visibility into upcoming asset repayments not captured by prescriptive GAAP disclosures.