Financials top the list of early earnings highlights. The six largest companies in the group have traded higher since reporting robust results. These results come despite a backdrop of increasing economic worries and defaults at select customers. Many of these financial institutions have worked to capture demand and improve operations which together powered earnings estimates higher.
The six large financial institutions that have reported thus far this earnings season have all traded higher since their announcements. As shown in the chart below, the average return for this group during the past week was 5.8%, more than double the return of the overall market (FactSet data, prices from 10/10/25 close through midday 10/16/2025).
Encouragingly, these positive moves in stock prices follow the fundamentally positive news these companies reported. Each of these six companies saw their FactSet consensus EPS estimate for this current fiscal year move higher since reporting, as shown in the table below.
Executives from these institutions used their earnings calls to reinforce the fundamental strength of their business to help ease investors’ concerns amid idiosyncratic customer defaults. Two of the more consumer-focused companies (Citigroup and Bank of America) noted how technology is enhancing their business, while institutional-focused Goldman Sachs noted strength across their segments:
- Brian Moynihan, CEO of Bank of America: “Our results underscore the benefits of a diversified business model. … We believe applied technology … provides constant leverage and constant reinvestment with the same expense base.”
- Jane Frasier, CEO of Citigroup: “The consistently strong results … are a consequence of how we have fundamentally changed the bank … We are running the businesses differently and capturing the synergies between them.”
- David Solomon, CEO of Goldman Sachs: “This quarter’s results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment. Across our business, clients continue to turn to us for their most complex and consequential matters.”
Financial institutions have so far reported strong results this earnings season. Fundamental estimates of earnings per share moved higher, and the stock prices followed higher with the group outperforming the broader market on average. Executives from many of the largest institutions are employing technology to enhance operations and a positive market environment has helped execution.
For more content by Blake Anderson, CFA®, Associate Portfolio Manager click here.
8511682.1.-20OCT2025A
