JPMorgan Chase & Co. is a diversified global financial services firm (commercial and consumer banking, investment banking, asset management) that combines sustained per-share growth with above-average profitability across its businesses.
The company shows multi-year per-share compounding: five-year diluted EPS CAGR of 14.39% and three-year EPS CAGR of 14.83%, with revenue per share compounding at 8.82% over five years and book value per share up 5.35% over five years, supporting a steady per-share upward trend (EPS Diluted & Revenue per Share).
Trailing twelve-month net income has been stable in the mid‑$50 billions (recent TTM net income around $57.05B) and quarterly revenue has held in a narrow band near $45–46B per quarter (most recent quarter revenue $45.80B), reflecting a consistent top line (Revenue & Net Income).
Profitability metrics remain strong: a trailing net profit margin near 31.3% and ROE around 15.7% over the latest twelve months indicate durable margin and shareholder returns (Profit Margin Trends); Return on Equity (ROE)).
Material concerns center on cash generation and recent per-share momentum. Operating cash flow on a trailing‑12‑month basis has swung sharply negative, most recently at -$147.78B while TTM net income is +$57.05B, creating a large earnings-to-cashflow disconnect that merits scrutiny (Earnings Quality Analysis).
Investing cash flow was -$265.56B TTM and financing cash flow offset with +$269.53B TTM in the latest period, underscoring heavy balance-sheet activity in 2025 (Strategic Capital Allocation).
On per-share trends, revenue-per-share growth has decelerated to 2.8% year-over-year and one-year diluted EPS growth turned negative at -2.4% most recently, after stronger mid‑teens gains earlier in the series (Revenue & EPS Growth; EPS Diluted & Revenue per Share). Quarterly net income also declined to $13.03B in 2025 Q4 (Revenue & Net Income).
Key fundamental metrics to monitor include operating cash flow (currently -$147.78B TTM) relative to reported net income (TTM $57.05B) and the direction of investing cash flow (-$265.56B TTM) versus financing flows (+$269.53B TTM) (Strategic Capital Allocation; Earnings Quality Analysis).
Also monitor revenue-per-share growth (2.8%), one‑year EPS growth (-2.4%), and ROE trends around the mid‑teens (15.7%) as indicators of ongoing earnings power and capital efficiency, and watch the trailing PE expansion to 15.7x as reported most recently (Price-to-Earnings (PE) Ratio Trend).
The foundation of business quality and long-term value creation
JPMORGAN CHASE & CO's quarterly revenue has been relatively consistent through 2025, trading in a narrow band around the mid-$40 billions: $45.31B (2025 Q1), $44.91B (Q2), $46.43B (Q3) and $45.80B (Q4). Revenue is below the $50.20B peak observed in 2024 Q2 and above the sub-$40B quarters seen in late 2022–2023, showing a stable top line in the most recent year with modest quarter-to-quarter variation.
Net income has shown greater variability than revenue. After a $18.15B high in 2024 Q2, quarterly net income in 2025 moved from $14.64B (Q1) to $14.99B (Q2) and $14.39B (Q3) before falling to $13.03B in 2025 Q4. The most recent quarterly revenue was $45.80B. The most recent quarterly net income was $13.03B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Jan 2025 to Dec 2025, Jpmorgan Chase Co generates $182.45B in revenue. After accounting for taxes and expenses, the company retains 31.3% as net profit margin, resulting in $57.05B in net earnings from $182.45B in revenue.
Period Information
Report Type: Annual (10-K)
Period: Jan 2025 to Dec 2025
Analyzing long-term margin stability and competitive positioning
JPMORGAN CHASE & CO's net profit margin has been in the low 30% range through the most recent year, showing a modest downward drift from a 33.0% trough-high in 2025-03 to 32.2% in 2025-06, 32.3% in 2025-09, and 31.3% in 2025-12. Across the past several quarters the margin has remained around 31–33%, indicating relative stability in the near term with the most recent quarter at the lower end of that band.
Looking back over the full series, margins rose notably from mid-teens in 2013–2014 into the high 20s and low 30s by 2019–2020, surged to a peak of 41.2% in 2021-09, and then declined into the mid-20s to low-30s in subsequent years before stabilizing. These points mark the largest observed inflection: a peak of 41.2% (2021-09) and a trough of 24.4% (2020-12) within the provided history. The most recent Net Profit Margin (trailing twelve months) was 31.3% as of 2025-12-31.
Understanding Profit Margins
Between Jan 2025 and Dec 2025, Jpmorgan Chase Co converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Over the past several quarters, JPMORGAN CHASE & CO's trailing twelve-month net income has been stable and consistently positive, clustering in the mid-to-high $50 billions (recent TTM readings around $56–$59B). In contrast, operating cash flow (TTM) has been highly volatile and moved sharply negative in the last year, creating a pronounced divergence between reported earnings and cash generation.
Notable inflection points include a peak in operating cash flow of $107.12B at 2022-12-31, followed by large swings and a sustained move into deep negative territory beginning in late 2024 (‑$129.54B at 2024-09-30) and troughs of roughly ‑$148.6B in mid‑2025. The most recent figures show a continued gap: Net Income TTM of $57.05B and Operating Cash Flow TTM of -147.78B.
The most recent trailing twelve-month net income was $57.05B. The most recent trailing twelve-month operating cash flow was -147.78B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
Over the most recent year, JPMORGAN CHASE & CO's trailing twelve-month return on equity has been in the mid-teens, moving from 17.0% at 2025-03-31 and 2024-12-31 to 15.8% (2025-06-30), 16.1% (2025-09-30), and 15.7% (2025-12-31). This sequence shows a modest downward drift from the 17.0% readings earlier in the year to the current level, with quarter-to-quarter variability within a roughly 1–1.5 percentage point range.
Over the longer series, the ROE rose from single-digit and low-teens levels in the mid-2010s into the mid-teens by 2019–2021, reached a series high of 17.3% on 2021-09-30, and displayed a sharp dip into the 9–11% range around 2020 before recovering. The most recent trailing twelve-month ROE was 15.7% as of 2025-12-31.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
JPMORGAN CHASE & CO's operating cash flow (TTM) has moved from large positive levels in 2022 (e.g., $107.12B at 2022-12-31) into a negative trend through 2024–2025. After intermittent positive readings in 2023, the TTM operating cash flow turned more consistently negative in 2024 and deepened in 2025, with recent quarterly TTM observations around -$139.69B (2025-03-31), -$148.62B (2025-06-30), -$119.75B (2025-09-30) and then -$147.78B (2025-12-31), indicating increased outflows on a trailing-year basis in the most recent quarters.
Investing cash flow (TTM) has been predominantly negative across the period and became substantially more negative in 2025 before moderating slightly by year-end: from -$238.10B (2025-03-31) to -$316.92B (2025-06-30), -$294.83B (2025-09-30) and -$265.56B (2025-12-31).
Financing cash flow (TTM) shifted from sizable negative values in 2022–2023 to large positive inflows starting in 2024 and remaining elevated through 2025, with recent TTM figures of $240.34B (2025-03-31), $335.90B (2025-06-30), $277.38B (2025-09-30) and $269.53B (2025-12-31).
Most recent values: Operating Cash Flow (TTM) = -$147.78B; Investing Cash Flow (TTM) = -$265.56B; Financing Cash Flow (TTM) = $269.53B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
JPMORGAN CHASE & CO's trailing twelve-month Price-to-Earnings (PE) ratio has increased over the past year, moving from a roughly stable mid-10x range in 2024 to a clear upward shift in 2025. The series shows an inflection beginning in the 2025-06 quarter, with continued increases to 15.1x in 2025-09 and 15.7x in 2025-12, indicating accelerating expansion of the multiple in the most recent quarters.
Viewed against the full history in the dataset, the 15.7x at 2025-12 is the highest PE ratio observed in the provided series and follows a multi-year band that typically ranged between roughly 7x and 12x. The most recent Price-to-Earnings (PE) ratio was 15.7x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.