The fourth quarter earnings season began this week with reports from Delta Air Lines and JPMorgan Chase. Additional bank earnings are scheduled throughout the week.
Analysts estimate S&P 500 companies will report an 8.3% earnings per share growth for the quarter, according to FactSet data. This would mark the tenth straight quarter of annual earnings growth for the index.
Expectations have been revised upward since September, when the consensus estimate stood at 7.2%. Tech companies, which have driven recent growth, saw particular increases in forecasts.
This earnings period will test the improved market breadth seen early in 2026. Themes from 2025, including artificial intelligence, tariff policies, and consumer economic trends, remain relevant for investors.
Major financial institutions are reporting results. Bank of New York Mellon reported Tuesday. Bank of America, Citigroup, and Wells Fargo reported Wednesday. BlackRock, Goldman Sachs, and Morgan Stanley reported Thursday. State Street and PNC Financial reported Friday.
State Street stock fell more than 2% in premarket trading Friday. The company reported $3.7 billion in fourth quarter revenue, beating expectations. Assets under custody rose 16% to $53.8 trillion. However, net income declined 5% to $747 million, with earnings per share of $2.42 missing estimates. The company cited a $226 million repositioning charge.
On Thursday, State Street launched a digital asset platform offering tokenized assets. "This launch marks a significant step in State Street’s digital asset strategy," said President Joerg Ambrosius.
PNC Financial stock rose 3% Friday. The bank reported earnings per share of $4.88, beating estimates of $4.19. Revenue was $6.1 billion, above the $5.95 billion consensus.
J.B. Hunt stock fell 4% in after-hours trading Thursday. The company reported a 2% year-over-year revenue decline to $3.1 billion. Earnings per share were $1.90, beating expectations. Its Intermodal segment saw a 2% volume decline.
Chip stocks rose Thursday after TSMC beat expectations. CEO C.C. Wei dismissed concerns about an AI bubble. TSMC stock jumped 6% premarket. The company reported $33.73 billion in fourth quarter revenue and record profit of $3.14 per ADR share. It expects 2026 revenue to grow nearly 30%.
Morgan Stanley reported an 18% profit increase in the fourth quarter. Net income rose to $4.4 billion, or $2.68 per diluted share, beating estimates. Investment banking revenue increased 47% to $2.4 billion. Wealth management revenue surged 13% to $8.4 billion. The stock wavered in premarket trading.
BlackRock stock edged nearly 2% higher Thursday. The asset manager reported $342 billion in total client cash inflows for the fourth quarter, pushing assets to a record $14 trillion.
Bank stocks sold off Wednesday. Bank of America and Wells Fargo fell 5%, while Citigroup dropped more than 4%. JPMorgan declined around 1%. Analysts cited concerns about Federal Reserve independence and a proposed credit card rate cap.
"The only negative point was really investment banking," said B. Riley Wealth chief market strategist Art Hogan. HSBC's Saul Martinez attributed underperformance to policy "overhang."
Citigroup and Bank of America executives pushed back against the proposed 10% credit card rate cap Wednesday. "An interest rate cap is not something that we would or could support, frankly," said Citigroup CFO Mark Mason. Bank of America CEO Brian Moynihan said, "We're all in for affordability."
Citigroup stock fell 2% Wednesday. The bank reported a 13% year-over-year profit decline to $2.5 billion, citing a $1.2 billion loss on its Russia unit sale. Investment banking revenue climbed 35% to $1.29 billion.
Earlier in the week, JPMorgan executives warned about the credit card proposal. "People will lose access to credit, like on a very, very extensive and broad basis," said CFO Jeremy Barnum on Tuesday. CEO Jamie Dimon called the potential impact "dramatic."
Delta Air Lines CEO Ed Bastian also expressed concern Tuesday. "It would actually restrict the lower-end consumer from having access to any credit," he said.
JPMorgan reported fourth quarter results Tuesday that beat revenue estimates but missed earnings expectations. The stock fell.
Delta Air Lines stock sank 5% Tuesday despite beating fourth quarter earnings estimates, as forecasts fell below expectations.
Goldman Sachs analysts noted in a Jan. 8 report that investors are expecting a low-volatility earnings season, with an average implied earnings day stock move of 4.5%.