JPMorgan’s JPM investment banking (IB) business gained solid traction through the first nine months of 2025, signaling a strong recovery in global deal activity. The bank reported IB fees of $7.29 billion, up 12% year over year, driven by higher advisory and underwriting activity. In the third quarter alone, IB fees rose about 16% to roughly $2.6 billion, reflecting improved market sentiment, renewed M&A activity and strong issuance volumes.
The rebound stems from a friendlier rate environment, revived private equity transactions and the reopening of capital markets. JPMorgan, with a wallet share of 8.7% as of Sept. 30, 2025, benefited from its broad client base, deep product capabilities and strong cross-sell with its trading and commercial banking operations.
Looking ahead, 2026 could extend the recovery, supported by moderating interest rates and a potential surge in refinancing and leveraged finance activity. The advisory pipeline remains healthy, with management noting strength across most sectors and geographies. A sustained pickup in private equity and large-cap M&A could further boost JPMorgan’s IB fees.
However, risks remain. Market volatility, geopolitical uncertainty or a sudden change in monetary policy could weigh on issuance and deal flow. Competitive fee pressure may also limit upside as more banks chase mandates.
JPMorgan’s IB franchise continues to show a position of strength. Its scale, global reach and diversified business model provide resilience even in a slower market. While growth may moderate from 2025’s pace, the company is well placed to remain the industry leader in IB fees in the year ahead.
How JPM’s Peers are Expected to Fare in Terms of IB Fees?
Similar to JPMorgan, its peers Morgan Stanley MS and Goldman Sachs GS reported solid growth in their IB revenues in the first nine months of 2025.
Riding on a frenzy of deal-making activities and IPOs, Morgan Stanley's IB revenues were $5.21 billion in the first nine months of 2025, up 15% from the prior-year period. On the third-quarterearnings call Ted Pick, chairman and CEO of Morgan Stanley, said that the rebound in the operating environment enabled M&A and renewed financing activity. While he remained cautious, remarking that “whether we are entering a golden age of investment banking remains to be seen,” he affirmed that IB activity should trend upward over the next couple of years.
Driven by higher advisory revenues, signifying a substantial rise in M&A volumes, Goldman’s IB fees totaled $6.76 billion in the nine months ended Sept. 30, 2025, up 19% year over year. The company ended the third quarter as the leader in both announced and completed M&A, having advised on more than $1 trillion in announced M&A volumes year to date. During the third-quarterearnings call David Solomon, chairman and CEO of Goldman, highlighted improvements in M&A activity throughout the year and expects the constructive environment to persist through the end of 2025, with even stronger M&A activity anticipated in 2026 amid a favorable backdrop.
JPMorgan’s Price Performance, Valuation and Estimates
JPMorgan’s shares have gained 27.4% this year, outperforming the S&P 500 Index’s gain of 18.3%.
JPM’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.07X, slightly above the industry average.
P/TB Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a 1.9% rise on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 3.9%. In the past 30 days, earnings estimates for 2025 and 2026 have moved upward.
Earnings Estimates Trend
Image Source: Zacks Investment Research
JPM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
