Bank Stocks: Another Quarter of Double-Digit S&P 500 Earnings Growth?

Group 1 - The "Big Six" US banks (JPM, BAC, C, WFC, MS, GS) reported strong Q4 2025 profits, with half of them missing revenue expectations due to one-time charges [1] - Investment banking showed a resurgence, and loan demand remained strong despite falling interest rates and significant restructuring charges [2] - Most banks exceeded EPS estimates, but market reactions were muted or negative due to cautious 2026 guidance and rising operational costs related to AI investments [3] Group 2 - Bank of America reported a 12% profit increase driven by record net interest income, while JPMorgan and Citigroup managed one-time cleanup costs to signal a clearer path forward [4] - As of now, 7% of S&P 500 companies have reported results, with a blended EPS growth rate of 8.2% and revenue growth expectations rising to 7.8% [5] - The Late Earnings Report Index (LERI) indicates that CEOs are more confident than ever, with a record low reading of 46 for Q4 earnings season [6][8] Group 3 - The peak earnings season for Q4 is expected to run from January 26 to February 27, with over 1,000 reports anticipated each week [11] - Upcoming earnings releases include 35 S&P 500 companies and 577 companies in the global universe of 11,000 equities [9]