Most reporting banks in the US have beaten earnings forecasts for the second quarter, driven by favorable revenue trends, Raymond James said in a report Monday.
Some 66% of the 430 publicly traded banks have topped earnings-per-share estimates, said Raymond James' analysts, who used Friday as the cutoff date for their analysis. The banking industry reported a 74% beat rate in the first quarter and 77% in the year-ago period.
Median revenue grew 3.9% quarter over quarter, up from 0.6% growth in the prior quarter but down from 4.9% a year earlier. Net interest income and fee revenue growth accelerated sequentially, but slowed year on year, according to the note.
"While elevated macro uncertainty continues to linger, asset quality remains broadly favorable," Raymond James said.
Earlier in the month, big banks JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs (GS), Citigroup (C), Wells Fargo (WFC) and Morgan Stanley (MS) beat second-quarter expectations, driven by investment banking and trading gains.
"With most 2026 outlooks largely reiterated and core fundamental drivers intact, consensus estimates continue to possess an upward bias, with a net 38% of 2026 estimates raised and a net 19% of 2027 estimates raised," Raymond James' analysts wrote.
S&P 500 companies' second-quarter earnings growth reached 70%, driven by the information technology sector, where profits nearly tripled year on year, Oppenheimer Asset Management said Monday. The financials industry has seen earnings rise by 31% and revenue grow 17% annually.
