JPMorgan Chase reported $16.9 billion in second-quarter profit on Tuesday, the highest quarterly profit in U.S. banking history, according to ABC News. The nation's largest bank by assets said revenue in every line of its business hit record levels in the quarter.
The bank earned $6.14 per share, beating analyst estimates of $5.59 per share. Managed revenue came in at $58 billion, also topping estimates from analysts surveyed by FactSet. Shares were down 2.4% before the opening bell despite the record results.
The gains were driven largely by the bank's trading desks, which have been capitalizing on the market swings caused by the ongoing war with Iran. Revenue in JPMorgan's equity markets division skyrocketed 86% over the same period last year. Overall markets division revenue grew 35%.
CEO Jamie Dimon said revenue from the bank's investment banking division rose 30%, reaching its highest level since 2021. Demand for initial public offerings and mergers and acquisitions remained strong throughout the quarter.
Global M&A activity accelerated sharply in the second quarter of 2026, with deal announcements up 64% year-over-year and closings up 33%, according to Morgan Stanley. It was the sixth straight quarter of year-over-year volume growth. Deals of $10 billion or more accounted for 43% of the quarter's announced volumes, the most in more than six years. Morgan Stanley's research arm forecast that 2026 global M&A announcements will reach $6.4 trillion, topping 2021's $6.1 trillion record.
The IPO market also delivered a record quarter. Forty-eight IPOs raised nearly $105 billion, according to Renaissance Capital. The bulk of those proceeds came from SpaceX's offering, which brought in $75 billion, more than all U.S. IPOs combined in 2024 and 2025. Korean memory chip giant SK Hynix also completed a mega-listing on Friday, raising $26.5 billion.
Markets have been swinging since the U.S. and Israel attacked Iran in late February, with military strikes from both sides interspersed with pauses and temporary truces. Investors' concern that the war will last a long time has triggered heavy selling, while hopes for a resolution have sparked buying. That volatility has proven to be a steady source of trading revenue for Wall Street's largest institutions.
