Zacks Earnings Trends Highlights: JPMorgan, Wells Fargo and Citigroup

For Immediate ReleaseChicago, IL – July 10, 2025 – Zacks Director of Research Sheraz Mian says, "The quarter started with significant pressure on Tech sector estimates, but the negative revisions trend notably stabilized in the subsequent weeks."Finance Earnings Outlook Improves: A Closer LookNote: 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:Total S&P 500 earnings for the June quarter are expected to be up +4.7% from the same period last year on +4.0% higher revenues. While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June quarter got underway.Q2 earnings estimates for the Tech and Finance sectors, the two largest contributors to aggregate S&P 500 earnings, accounting for 51% of all index earnings, have also been cut since the quarter got underway. The quarter started with significant pressure on Tech sector estimates, but the negative revisions trend notably stabilized in the subsequent weeks.Q2 earnings growth for the S&P 500 index of +4.7% improves to +6.7% once the Energy sector’s drag is removed from the aggregate numbers, but the growth pace drops to +1.6% once the Tech sector’s substantial contribution is excluded.Q2 earnings for the ‘Magnificent 7’ group of companies are expected to be up +11.4% from the same period last year on +11.1% higher revenues. Excluding the ‘Mag 7’ contribution, Q2 earnings for the rest of the index would be up +3.3% (vs. +4.7%).Bank Earnings Outlook ImprovingJPMorgan JPM, Wells Fargo WFC and Citigroup C will kick-start the June-quarter reporting cycle for the Finance sector on July 15th. These banks comfortably passed the Fed’s stress tests, opening the way for increased capital returns to shareholders through share buybacks and dividend hikes.The earnings outlook for the group remains subdued, with growth hindered by weak demand trends in both the conventional banking business and investment banking. But the operating environment for the group is steadily improving, both in terms of fading macroeconomic fears and increasing odds of relief on the regulatory front. While Q2 earnings growth for the group is expected to be flat at best, estimates for the second half and beyond are starting to reflect the improving operating environment.For JPMorgan, Q2 earnings are expected to be down -5.4% on -13.3% lower revenues. For Citigroup and Wells Fargo, Q2 earnings are expected to be down -3.8% and -7% from the year-earlier level, respectively. While Q2 EPS estimates for each of these banking leaders have remained stable at best in recent weeks, a clear trend is emerging of steadily rising earnings estimates for the back half of the year and beyond.You can see this in the revisions trend for 2026 in recent weeks, with current 2026 EPS estimates for JPMorgan, Wells Fargo, and Citigroup increasing by +2%, +1.5%, and +1.1% over the past month, respectively.The Zacks Investment Brokers & Managers industry at the mezzanine level, which includes JPMorgan, Citigroup, and Wells Fargo, total Q2 earnings are expected to be down -2.8% from the same period last year, on -0.5% lower revenues. For the Zacks Finance sector, roughly 60% of whose earnings come from this industry, Q2 earnings are expected to be up +8.2% on +3.9% higher revenues.Unlike the group’s anemic earnings growth expectations, these stocks have been standout performers in the market lately, which likely reflects improved odds of capital returns expectations and hopes of improving earnings growth in the coming periods.The banking industry and the broader Finance sector are expected to be significant contributors to aggregate earnings growth going forward.Expectations for 2025 Q2The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2nd tariff announcements. While the onset of the announced levies was eventually delayed by three months, the issue weighed heavily on estimates for the current and upcoming quarters, particularly in the weeks following the April 2nd announcement.The expectation at present is for Q2 earnings for the S&P 500 index to increase by +4.7% from the same period last year on +4.0% higher revenues.While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts were greater than we have seen in the comparable periods of other recent quarters.Since the start of the quarter, estimates have come down for 13 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sectors experiencing favorable revisions in this period are Aerospace, Utilities, and Consumer Discretionary.Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began.Tech sector earnings are expected to be up +12.1% in Q2 on +11.0% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks.The two charts above show that estimates for the Tech sector have stabilized and are no longer under the type of downward pressure experienced earlier in the quarter. The Tech sector is much more than just any other sector, as it alone accounts for almost a third of all S&P 500 earnings.The Earnings Big PictureThe market’s rebound from the post-tariffs April lows has been very impressive, likely suggesting that market participants don’t see the tariff uncertainty as presenting a significant threat. We find ourselves a bit skeptical of this sanguine view. Whatever the final level of tariffs turns out to be, it will have an impact on the earnings picture.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>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 Wells Fargo & Company (WFC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. 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