JPMorgan's stock tumbled more than 4% on Tuesday after a top executive warned that the bank expects much higher costs in 2026.
The drop made it the biggest loser in the Dow for the day, as investors reacted to news that expenses could climb to $105 billion, well above earlier forecasts.
Marianne Lake, who leads JPMorgan's consumer and community banking division and is often mentioned as a possible successor to CEO Jamie Dimon, shared the update during a major banking conference in New York.
According to the NYPost, her comments quickly raised concerns across Wall Street, since analysts had expected next year's expenses to total about $100.84 billion.
Lake explained that most of the rising costs are tied to growth. She said the bank is spending more on advisor pay, credit-card marketing, branch construction, and new technology.
She also warned that inflation continues to push everyday business costs higher. "Volume and growth-related expenses" were the biggest pressures, she said.
Top JPMorgan executive Marianne Lake, a possible Jamie Dimon successor, warns of higher costs for 2026 https://t.co/U6BCUF0Vgy pic.twitter.com/Nk2pyE9NZT
— New York Post (@nypost) December 9, 2025
JPMorgan Shares Sink 4.65%
The warning hit the stock hard. JPMorgan fell 4.65%, closing at $300.51, marking its sharpest one-day decline since April.
For many investors, the moment felt similar to 2022, when another cost update from the bank also sent shares falling.
Lake, known for her steady communication style, stressed that the extra spending is part of a long-term plan. She said the bank feels "really great" about how it is investing its money and remains confident in its business performance.
JPMorgan has a history of big investments, especially under Dimon, who has argued that spending on technology and real estate should be viewed as necessary for the bank's future.
The company is on track to use $18 billion on technology this year alone, Yahoo reported.
Lake also shared updates on the bank's revenue outlook. She expects investment-banking fees to rise by a "low single-digit" percentage and trading revenue to grow in the "low teens" compared to last year.
Both areas have already seen strong gains in the first nine months of the year.
On the US economy, Lake said most customers still look healthy but warned that the environment feels "a little bit more fragile."
With cash buffers shrinking after the pandemic years, she noted that consumers have "less capacity to weather an incremental stress."
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