Wall Street’s big banks deliver mixed earnings. Executives bet the IPO lull won’t last

Wall Street's leading banks and financial experts delivered a mixed earnings report this week. Fortune's senior finance reporter, Morgan Chittum, provided a Term Sheet newsletter highlighting the latest bank earnings reports. Bank of America reported a drop in Q3 profit, while Morgan Stanley exceeded expectations with both top and bottom lines growing.

Citi also saw a drop in profit. Wells Fargo missed revenue targets but still outperformed earnings estimates. JPMorgan Chase, the largest bank in the U.S., missed revenue and earnings goals for the first time in nearly three years, due to rising costs and weaker fixed-income trading. Goldman Sachs, on the other hand, surpassed both revenue and earnings per share forecasts.

The mixed earnings and delayed IPOs have left colleagues questioning the future of dealmaking. JPMorgan CFO Jeremy Barnum stated that IPOs are being "delayed rather than cancelled" and that the firm's pipeline remains "very, very strong." Goldman CEO David Solomon acknowledged a softer IPO market but suggested that valuation concerns might lead companies to delay their plans.

Matt Kennedy, a Renaissance Capital strategist, noted that investors are questioning AI valuations and rising interest rates, which could impact IPO activity. Despite the mixed earnings, Renaissance Capital still projects a record number of IPO deals and proceeds for 2026, with a successful Anthropic IPO next month potentially boosting the market.