Big Banks Enter Q1 Earnings on Shakier Ground.

Wall Street’s biggest banks are heading into Q1 earnings season with noticeably less confidence than they had at the start of the year. After a strong run-up into late 2025 that pushed many of them to record highs, sentiment has cooled over the past few months, and expectations feel a lot more balanced now. We kick off this week with Goldman Sachs, followed quickly by JPMorgan, Citigroup, and Wells Fargo, with Bank of America and Morgan Stanley wrapping things up. It’s basically a full stress test of how the sector is handling a more uncertain backdrop. What stands out this quarter is the shift in narrative. A few months ago, the focus was on momentum trading activity, deal making recovery, and rate tailwinds. Now, the conversation feels more defensive: credit quality, net interest margins, and whether capital markets strength can actually sustain itself if volatility stays uneven. Markets have already taken some of the optimism out of bank stocks since their highs, which makes this earnings season interesting expectations aren’t euphoric anymore, but they’re not exactly pessimistic either. That “in-between” zone is where surprises (both good and bad) tend to matter more.