All eyes are on the first-quarter earnings of large U.S. banks, with Goldman Sachs (GS) kicking off the earnings season for the sector on Monday, April 13, followed by JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) on Tuesday. Major banks are expected to report solid investment banking fees from strong deal activity. According to Reuters, 24 mega deals worth more than $10 billion were reached worldwide, along with 40 deals valued at over $5 billion.
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However, geopolitical risks, elevated oil prices, and macro uncertainty due to the ongoing U.S.-Iran war are expected to weigh on the outlook for the upcoming quarters.
Let’s look at Wall Street’s expectations from some of the U.S. banks.
Goldman Sachs (NYSE:GS) Stock
Goldman Sachs is expected to report Q1 2026 EPS (earnings per share) of $16.41, reflecting 16.2% year-over-year growth. The company derives a larger share of its revenue from investment banking than many of its rivals. Its Q1 2026 performance is expected to benefit from strong M&A activity.
Ahead of Q1 earnings, UBS analyst Erika Najarian reiterated a Hold rating on Goldman Sachs stock and lowered her price target to $930 from $990. The 4-star analyst stated that she kept her 2026 and 2027 estimates largely intact despite reduced expectations for interest rate cuts from two to one in 2026. Najarian is bullish on some bank stocks due to solid momentum in direct lending, capital markets, and industry deregulation.
Wall Street has a Moderate Buy consensus rating on Goldman Sachs stock based on five Buys, five Holds, and one Sell. The average GS stock price target of $975.73 indicates 8.78% upside potential. GS stock is up 3% year-to-date.
JPMorgan Chase (NYSE:JPM) Stock
JPMorgan is the largest U.S. bank in terms of assets. Wall Street expects JPM to report more than 7% rise in its Q1 2026 EPS to $5.44. The bank recently said that it expects solid growth in its investment banking fees and markets revenue.
Recently, Piper Sandler analyst Scott Siefers lowered the price target for JPM stock to $325 from $345 and reiterated a Buy rating. The analyst lowered his price target to reflect reduced EPS estimates for 2026 and lower valuations for bank stocks. Nonetheless, Siefers is bullish on JPMorgan’s prospects and believes that it will “hold up well as an ultra-conservative name in an increasingly fluid environment.”
With 12 Buys and eight Holds, Wall Street has a Moderate Buy consensus rating on JPMorgan Chase stock. The average JPM stock price target of $337 indicates 10% upside potential from current levels. JPM stock is down 4.4% year-to-date.
Citigroup (NYSE:C) Stock
Citi is scheduled to announce its Q1 results on April 14. Despite intense geopolitical risks, CEO Jane Fraser said that the bank expects mid-teens percentage growth in Q1 investment banking fees and markets revenue. Wall Street expects Citi to report a 34% year-over-year surge in its Q1 2026 EPS to $2.63, driven by strong revenue and the bank’s efforts to streamline its business.
Last week, Goldman Sachs analyst Richard Ramsden raised his price target for Citi stock to $137 from $123 and reiterated a Buy rating. The 5-star analyst believes that, following the year-to-date pullback in some bank stocks, valuations appear more in line with historical levels. Ramsden expects investors to focus on net interest income (NII) outlook, the impact of market volatility on capital markets revenue and credit quality, and the impact of higher energy prices.
Ahead of Q1 earnings, Wall Street has a Strong Buy consensus rating on Citigroup stock based on 15 Buys and two Hold recommendations. The average C stock price target of $133.47 indicates 8.5% upside potential. Citi stock has risen about 6% year-to-date.
Bank of America (NYSE:BAC) Stock
Bank of America is scheduled to announce its Q1 2026 results on April 15. Wall Street expects Bank of America to report a 12.2% year-over-year rise in Q1 2026 EPS to $1.01.
Recently, HSBC analyst Saul Martinez upgraded Bank of America stock to Buy from Hold but lowered the price target to $55 from $57. Martinez sees Bank of America as a long-term winner in the U.S. banking space, with a conservative credit position and expectations of significant profitability expansion in the years ahead as fixed-rate assets reprice against a higher interest-rate backdrop. Martinez also expects BAC to post solid pre-provision net revenue (PPNR) and EPS growth in the years ahead.
Following the 6% year-to-date selloff, Martinez no longer believes that the valuation reflects BAC’s “good” financial outlook and leading market position across numerous businesses.
With 18 Buys and two Holds, Wall Street has a Strong Buy consensus rating on Bank of America stock. The average BAC stock price target of $60.24 indicates 16% upside potential.
