JPM
JPMorgan Chase & Co.
Financial Services · Banks - Diversified · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The near-maximum profitability score anchors the composite, reflecting a 31.3% net margin, 39.8% operating margin, and 15.7% return on equity that are hallmarks of a highly efficient financial institution.
- Growth and momentum scores are both near or below midpoint, dragged by a 2.4% net income decline in FY2025 and a quarterly earnings dip through 2025Q4, which offset the profitability strength.
- The absence of any macro theme assignment contributes zero to the theme factor, and the dividend score, while positive, is moderated by a 29.1% payout ratio that is conservative relative to higher-yielding peers.
Why Not Higher
- Net income contracted 2.4% in FY2025 and quarterly earnings softened through 2025Q4, limiting the growth and momentum contributions to the composite score despite strong profitability.
- With no current macro theme assignment, JPMorgan receives no theme-based score contribution, capping the total composite below what its profitability metrics alone might otherwise support.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew modestly from FY2024 to FY2025, rising from $177,556,000,000 to $182,447,000,000 (+2.8%), while net income declined from $58,471,000,000 to $57,048,000,000 (-2.4%) over the same period. Diluted EPS edged up from $19.75 in FY2024 to $20.02 in FY2025 (+1.4%), partly offsetting the net income contraction.
The model reflects a mixed growth picture: modest top-line expansion and a slight EPS gain were weighed against a year-over-year decline in net income, resulting in a below-midpoint score that rewards incremental progress but penalizes earnings contraction.
In FY2025, JPMorgan Chase posted a net margin of 31.3%, an operating margin of 39.8%, and a return on equity of 15.7%, all reflecting strong earnings efficiency relative to revenue and equity base.
The model rewarded these high margin and return figures with a near-maximum score, recognizing that retaining over thirty cents of every revenue dollar as net income and generating a mid-teens return on equity are hallmarks of a highly profitable financial institution.
Filing evidence currently available does not support a more specific explanation for this factor.
Net income over the last four quarters moved from $14,987,000,000 in 2025Q2 to $14,393,000,000 in 2025Q3, then declined to $13,025,000,000 in 2025Q4 before rebounding sharply to $16,494,000,000 in 2026Q1. Operating income followed a similar pattern, dipping from $18,284,000,000 in 2025Q2 to $17,160,000,000 in 2025Q4 before surging to $20,479,000,000 in 2026Q1.
The model appears to have captured the mid-period deceleration through 2025Q4 as a drag on momentum, with the strong 2026Q1 rebound not fully offsetting the prior softness under the model's trailing-trend methodology, yielding a near-midpoint score.
Dividends per share have risen consistently from $4.00 in FY2022 to $4.10 in FY2023, $4.80 in FY2024, and $5.80 in FY2025, while the dividend payout ratio stood at 29.1% of net income in FY2025.
The model rewarded the steady multi-year dividend growth trajectory, but the relatively modest payout ratio of 29.1% in FY2025 suggests the dividend, while growing, consumes a limited share of earnings, which may have constrained the score relative to higher-yielding or higher-payout peers.
JPMorgan Chase is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a macro theme assignment means the security did not qualify for theme-based score contribution under the current methodology; this is a neutral classification rather than a reflection of the company's underlying characteristics.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
JPMorgan Chase delivered modest top-line growth of 2.8% in FY2025, with revenue rising to $182.4 billion, though net income slipped 2.4% to $57.0 billion even as diluted EPS edged up 1.4% to $20.02. The firm's profitability profile remains a standout, with a net margin of 31.3%, an operating margin of 39.8%, and a return on equity of 15.7% in FY2025. Quarterly earnings momentum showed a mid-period dip through 2025Q4 before a sharp rebound to $16.5 billion in net income in 2026Q1, while dividends per share have grown steadily from $4.00 in FY2022 to $5.80 in FY2025 at a conservative 29.1% payout ratio. The composite score of 57.6 reflects a company with exceptional profitability but mixed growth signals and no current macro theme assignment, warranting further research.
Plain English
JPMorgan Chase is a highly profitable bank that makes over thirty cents of profit for every dollar of revenue, but its earnings dipped slightly last year and its revenue growth was modest, so the overall score lands in the middle of the range — good but not great across all dimensions.
Bull Case vs. Bear Case
Bull Case
- Exceptional profitability metrics — a 31.3% net margin, 39.8% operating margin, and 15.7% return on equity in FY2025 — demonstrate that JPMorgan consistently converts revenue into earnings at a level that distinguishes it among large financial institutions.
- Dividends per share have grown every year from $4.00 in FY2022 to $5.80 in FY2025, and the 29.1% payout ratio leaves substantial room for continued dividend increases or capital deployment.
- The sharp rebound in net income to $16.5 billion in 2026Q1, after a trough of $13.0 billion in 2025Q4, suggests underlying earnings power remains robust and the mid-period softness may prove transitory.
Bear Case
- Net income declined 2.4% year-over-year from $58.5 billion in FY2024 to $57.0 billion in FY2025, signaling that despite top-line growth, earnings contraction is a near-term headwind.
- Revenue growth of only 2.8% in FY2025 is modest for a firm of this scale, and the model's below-midpoint growth score reflects that incremental progress has not translated into accelerating earnings expansion.
- Quarterly momentum was weighed down by a deceleration through 2025Q4, and the model's trailing-trend methodology did not fully credit the 2026Q1 rebound, leaving momentum near the midpoint of its range.
What Could Change the Picture
Bullish Triggers
- Sustained acceleration in quarterly net income beyond the 2026Q1 rebound of $16.5 billion would signal that the mid-period earnings softness was temporary and could lift the momentum score meaningfully.
- A continued increase in dividends per share above the $5.80 FY2025 level, particularly if accompanied by a higher payout ratio, would strengthen the dividend factor and reflect greater earnings confidence from management.
Bearish Triggers
- A reversal of the 2026Q1 earnings rebound — with net income falling back toward or below the $13.0 billion 2025Q4 trough — would confirm a deteriorating earnings trend and weigh on both momentum and growth scores.
- Further compression of the net margin below the current 31.3% level would undermine the profitability factor that currently anchors the composite score.
Red Flags
- ONE_TIME_REVIEW: 2024 OCF/NI ratio = -0.72 (OCF=-42,012,000,000, NI=58,471,000,000) — possible large one-time item
- ONE_TIME_REVIEW: 2025 OCF/NI ratio = -2.59 (OCF=-147,782,000,000, NI=57,048,000,000) — possible large one-time item
Risk Profile
Low RiskJPMorgan's total assets stood at $4.4 trillion in FY2025, reflecting the scale and complexity typical of a globally systemic financial institution, while quarterly earnings showed meaningful variability — ranging from $13.0 billion in 2025Q4 to $16.5 billion in 2026Q1 — indicating that near-term income can fluctuate materially even within a single fiscal year.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.