Goldman JPMorgan Citi Wells Fargo Top Q1 Estimates

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Big Bank Earnings Gave Financials a Lift, But Wall Street Is Still Cautious

Written by Jessica Mitacek on April 22, 2026 

A person in business attire types on a keyboard beside financial reports with overlaid candlestick chart graphics.

Key Points

  • Goldman Sachs, Wells Fargo, Citigroup, and JPMorgan all posted Q1 2026 earnings beats, signaling potential undervaluation across major financial stocks.
  • The financials sector has shed nearly 4% year-to-date in 2026 but has rebounded more than 7% over the past month amid strong bank earnings.
  • Analysts remain cautious despite the earnings beats, with mostly conservative price targets and low expectations for Federal Reserve rate cuts ahead.
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The financials sector has not been kind to investors this year.

Following a strong 2025 that saw it finish third in the index, the group has been the worst performer among the S&P 500’s 11 sectors so far in 2026, having posted a year-to-date (YTD) loss of nearly 4% (as measured by theFinancial Select Sector SPDR Fund (NYSEARCA: XLF)).

But over the past month, financials have appeared to turn a corner after posting a gain of over 7%.

That momentum can, in part, be attributed to the lead-up to big banks’ earnings week, which kicked off on April 13 when Goldman Sachs (NYSE: GS) reported first-quarter results. For investors who have been monitoring the sector with an eye on a potential bounce, here’s what we have learned from the premier financial institutions. 

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Goldman Sachs: Earnings Growth Hints at Undervalued Shares

Goldman Sach’s Q1 2026 results may be enough to finally help the 157-year-old investment bank break even for the year.

That would build upon recent momentum that has seen shares of GS gain more than 16% from their YTD low on March 13 as they rallied into last week’s earnings release. 

The firm reported earnings per share (EPS) of $17.55, beating analyst expectations of $15.92, and revenue of $17.23 billion, beating analyst expectations of $16.66 billion.

While both figures were welcomed by shareholders, the revenue beat stood out as it showed a 14.4% year-over-year (YOY) increase. 

The earnings beat marked the bank’s 11th consecutive quarter of exceeding estimates, with CEO David Solomon noting in his earnings call comments that EPS, revenue, and net income all were the second highest in the company’s history. 

Notably, Goldman Sachs’ Global Banking & Markets segment and its Asset & Wealth Management segment reached record revenues and record assets under management, respectively.

Solomon did note near-term headwinds, though, including geopolitical unrest and a lack of clarity about how higher energy prices could impact growth. But the CEO said that the bank “is extremely well-positioned to navigate this current environment.” 

Goldman Sachs’ earnings are forecast to grow nearly 11% over the next year, from $47.12 per share to $52.07 per share. The stock is looking increasingly undervalued given its current and projected earnings growth. 

Big Banks Mirror Goldman’s Lead, Post Notable Earnings Beats 

Following Goldman Sachs’ success, Wells Fargo & Company (NYSE: WFC), Citigroup (NYSE: C), and JPMorgan Chase & Co. (NYSE: JPM) reported on April 14, with all three posting earnings beats.

While only Wells Fargo missed on revenue, the bank saw top-line growth of 6.4% YOY, with revenue for JPMorgan and Citigroupposting YOY increases of 10% and 14.1%, respectively.  

For each firm, the earnings beat marked the ninth consecutive quarter of EPS exceeding analyst expectations. But more importantly—as with Goldman Sachs—the Q1 beats are evidence of undervaluation, especially when those earnings are juxtaposed alongside each stock’s P/E multiple and forecasted earnings growth over the next year:

  • Wells Fargo: P/E 14.67, expected EPS growth of 16.64%
  • Citigroup: P/E 17.26, expected EPS growth of 25.5%
  • JPMorgan: P/E 17.31, expected EPS growth of 7.29%

Citigroup looks particularly undervalued after four of its five core businesses delivered double-digit revenue growth, and management sent investors a bullish signal after repurchasing $6.3 billion worth of shares in Q1 as part of a $20 billion buyback plan. 

But like Solomon, Citigroup’s CEO Jane Fraser acknowledged that the Iran war’s fallout presents a situation wherein “inflation is now a greater risk to growth and will likely cause central banks to lean towards more restrictive monetary policies.”

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Wall Street Remains Reserved on Financials

Despite the earnings beats, analysts are showing tepid enthusiasm for those four bank stocks with mostly conservative price targets. Wells Fargo and Citigroup both carry consensus Moderate Buy ratings, but only the former carries an average 12-month price target that suggests a double-digit gain from current prices. 

Expectations for additional rate cuts from the Federal Reserve are low, meaning banks will be able to continue improving their net interest margins as rates remain steady. Consumer spending remains strong, as cited in numerous banks’ earnings call comments. If the week concludes with a clean sweep of earnings beats, it very well could be the catalyst that financials need to change the narrative for the remainder of 2026.

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I was born on 6 August 1956 in San Francisco, California to Janet and (the late) Richard Hovis. I grew up in Santa Monica, California where I attended elementary, junior high school, and high school (graduating in 1974), in addition to involvement in sports and recreation (Little League +, the Boy’s Club ++). Further, it was in elementary school – St. Augustine’s By-the -Sea Parish School that I found, and made the choice to truly journey with God. I attended Arizona State University from 1974 to 1977 – seeking to become an architect, however, I was not accepted, and, as such, I graduated with a Liberal Arts degree. Upon graduation from Arizona State University, I attended Cal Poly San Luis Obispo and studied City and Regional Planning at the Master’s level. I successfully completed one (1) year in a two (2) year program – I did not complete the Master’s degree in City and Regional Planning – due to personal reasons. I returned to Santa Monica where I started (October 1979) my career as graphic designer with Exxon Company, USA. I spent five years with Exxon Company, USA. While working with Exxon Company, USA I was accepted into architectural school – Sci-Arc in Southern California, however, I did not attend preferring to stay with Exxon.. In 1982 I married Laura Flosi and in April 1983 we had our one and only child – Lauren Alain Hovis – a gift from God. We moved to Phoenix, Arizona in 1984 from Los Angeles, where I went to work as a graphic designer with Kitchell CEM (from 1985 -1987). From 1987 – 1995 I was an independent contractor, and a registered representative in mortgage finance, financial management, graphic design, and drafting. Further, I attended the University of Phoenix and successfully obtained a Master’s in Business Administration (MBA) in 1982. I was also a member of the Scottsdale Jaycees, where I became very involved in community events and projects. In 1994, I accepted a cartography position with the Defense Mapping Agency in Reston, Virginia. As such, I relocated from Phoenix to Reston. In 1998, I was accepted and worked as a Visual Information Officer with the Central Intelligence Agency. In 2002, I worked as a Support Officer until my retirement (due to a need for shoulder surgery) in September 2018. Away from my Federal Government service, I have been involved in various organizations and activities in Northern Virginia. In November of 2011, I married Rebecca Ouellette in Santa Monica, California. I reside in San Tan Valley, AZ with my two hamster - Jess and Timothy, our fish, our lizard - RJ Lizard., and our cats - Pearl and Grey. As to hobbies, I enjoy playing sports, attending sporting events, mentoring individuals from financial management to hamsters, building models, photography, travel, multimedia design, managing partner for RJ Hamster, and jazz – smooth jazz to a samba or a bossa nova. Love and God Bless, Peter – aka RJ Hamster Jo hi

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