JPMorgan expects adjusted spending of about $105 billion in 2026

Summary

JPMorgan Chase forecasts its 2026 adjusted expenses will be approximately $1050 billion Zhitong+ 2, a figure that notably exceeds its projected net interest income (NII) of $1030 billion JIN10+ 2. CEO Jamie Dimon has framed this aggressive spending, which is higher than market expectations Zhitong, as a crucial long-term investment to maintain a competitive edge against fintech rivals like Stripe and SoFi Sina Finance. Despite a Q4 investment banking miss JIN10+ 2, Dimon is asking investors to trust the strategy, stating that “the results will prove everything” Sina Finance.

Impact Analysis

So JPM is basically telling the market they’re willing to run at a loss on a core metric—projecting expenses of $1050B against NII of $1030B JIN10. This isn’t a sign of weakness; it’s a declaration of war. Dimon is explicitly pointing to fintechs like Stripe and SoFi as the reason Sina Finance. He’s leveraging JPM’s fortress balance sheet to fund an aggressive tech and market share expansion, essentially daring competitors to keep up. The market might fixate on the negative operating leverage, but that’s missing the point.

This is a classic Dimon move: using immense scale to crush competition, even if it means short-term pain. He’s asking for trust, and frankly, he’s earned it. The real play here isn’t about the next quarter’s EPS. It’s a long-term bet on solidifying their dominance for the next decade. While Citi stays ‘Neutral’ on valuation concerns Zhitong, I see this as a potential buying opportunity on any dips. They’re sacrificing a little margin now to build an even bigger moat for the future.