Markets & Finance

Citigroup posted $5.8 billion in net income and $24.8 billion in revenue for Q2 2026, with four of five business segments growing revenue by double digits and return on tangible common equity hitting 13.0%, the top of its 2027–2028 target range. Despite beating analyst EPS estimates by 15%, shares fell 4–5% in pre-market trading as investors focused on a 5% rise in operating expenses, a 47% drop in U.S. Consumer Cards non-interest revenue, and management's decision to hold its full-year RoTCE guidance at 10–11% rather than raise it. The article details how each segment performed, where transformation costs stand after 32,000 headcount reductions since 2023, and what a new $30 billion buyback authorization signals about capital return priorities.

IBM reported preliminary Q2 2026 revenue of $17.2 billion, missing analyst consensus of $17.86 billion, driven by a steeper-than-expected mainframe decline, stalled large deals, and what CEO Arvind Krishna described as insufficient internal execution speed. The resulting single-day share decline of approximately 25% was the largest in IBM's recorded trading history, surpassing the company's drop during the October 1987 market crash. IBM did not issue revised full-year guidance in the preannouncement, deferring that update to a scheduled conference call on July 22, 2026.

Wells Fargo posted $22.62 billion in Q2 2026 revenue, beating consensus by 3.5%, with investment banking fees up 35% year-over-year and wealth management client assets reaching $2.69 trillion. Net income of $6.4 billion and EPS of $2.00 both exceeded analyst estimates, driven by noninterest income that outpaced projections by $860 million despite a slight miss on net interest income. The results mark the bank's first full year of unrestricted balance sheet growth following the Federal Reserve's removal of its asset cap in June 2025, with average loans up 12% year-over-year to $1.03 trillion.

Bank of America posted $31.6 billion in revenue and $1.21 diluted EPS for Q2 2026, beating analyst consensus by 8% on earnings and 3.3% on revenue, with noninterest income as the primary driver. Global Markets sales-and-trading revenue hit a record $7.1 billion, up 33% year-over-year, and investment banking fees rose 50% to $2.1 billion. The bank also raised its quarterly dividend 12% and authorized a $30 billion share repurchase program, while updating full-year net interest income growth guidance toward the upper end of its 6–8% target range.