The second-quarter 2026 earnings season has started with strong momentum. So far, mainly major banks and financial institutions have reported their quarterly numbers. The Zacks-defined Financial – Investment Bank industry is currently in the top 11% of the Zacks Industry Rank. Since the industry is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
Here we recommend three investment bank behemoths with a Zacks top rank that have posted strong second-quarter financial numbers with a solid outlook. These are: JPMorgan Chase & Co. JPM, The Goldman Sachs Group Inc. GS and Citigroup Inc. C. Each of our stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks in the past three months.
Image Source: Zacks Investment Research
JPMorgan Chase & Co.
JPMorgan Chase remains well-positioned given the current operating backdrop. JPM’s second-quarter 2026 results reflected solid gains in capital markets and investment banking (IB). JPM continues to expand its physical and digital distribution network, which supports primary banking relationships, cross-selling opportunities in cards and auto loans, and long-term deposit share gains.
JPM’s consumer franchise keeps widening, with U.S. branch builds and Chase digital growth in Europe, while scale, diversified revenues and disciplined balance sheet management aid durable earnings. JPM’s higher-for-longer rate regime will aid net interest income (NII), and solid markets activity, IB fees and asset management flows will drive fee income.
JPM expects 2026 NII of roughly $105.5 billion and NII excluding Markets of about $96.5 billion. Both metrics show increases from the prior targets. Adjusted expenses are projected at around $107.5 billion, with the increase from the prior outlook of $106 billion reflecting higher volume- and revenue-related costs. The Card Services NCO rate is now expected to be approximately 3.2%, down from the previous target of 3.4%.
JPMorgan Chase has an expected revenue and earnings growth rate of 11.6% and 19%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.5% over the last seven days.
The Goldman Sachs Group Inc.
Goldman Sachs’ second-quarter 2026 results benefited from strong revenue growth in Global Banking & Markets and Asset & Wealth Management. GS’ strong capital and liquidity position aids shareholder returns, including a recent 11% dividend hike post-clearing 2026 Fed stress.
GS is prioritizing durable revenue streams, with improving deal activity and a strong investment banking backlog supporting advisory and fee-income growth. Its private credit expansion is expected to diversify revenue and drive long-term growth.
Goldman Sachs has an expected revenue and earnings growth rate of 19.3% and 31.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.3% over the last seven days.
Citigroup Inc.
Citigroup’s second-quarter 2026 performance reflected year-over-year growth in net interest income and fee income, while expanding loan and deposit balances continue to underpin growth. C’s simplified operating structure is reducing complexity, improving efficiency, and allowing capital to be redirected toward higher-return businesses.
C’s expanding private-market capabilities will likely drive fee income growth, while strong liquidity profile and improving efficiency support capital returns, including a planned dividend hike after clearing the 2026 stress test.
Citigroup expects NII (excluding Markets) to increase 5-6% on a year-over-year basis in 2026. Management anticipates an efficiency ratio of 60% in 2026, with another year of positive operating leverage.
C continues to target a return on tangible common equity (RoTCE) of 10-11% in 2026. U.S. Cards net credit loss (NCL) as a percentage of average loans is expected to be 4-4.5%. In 2025, U.S. Cards NCL was 4.1%. C also plans to continue share repurchases under its $30-billion authorization, with 2026 buybacks expected to exceed the 2025 level.
Citigroup has an expected revenue and earnings growth rate of 11.9% and 40.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3% over the last seven days.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).