Dimon Flags Higher Costs at JPMorgan, Teases a Possible $20 Billion Deal

The Financial Times, CNBC, Bloomberg, and Reuters contributed to this report.

JPMorgan Chase is telling investors to brace for a little more spending this year. CEO Jamie Dimon said on Wednesday that expenses could run about $1 billion higher than the bank had expected, a move that could take a bite out of profitability.

The bank lifted its full-year 2026 expense forecast to roughly $106 billion, up from $105 billion, pointing to stronger business activity. Even so, the market was not thrilled. JPMorgan shares were down nearly 3% in morning trading.

Dimon also kept the door open to a big acquisition. He said JPMorgan could spend $10 billion to $20 billion on a deal in the next couple of years, though he made clear he is not shopping just for the sake of it.

“We are on the lookout,” he said, while adding that any target would need to fit JPMorgan’s culture, plug neatly into the bank’s operations, and make the core business stronger. He also took a swipe at deal-hungry executives, saying M&A often becomes the talking point when a company is struggling to grow on its own.

For JPMorgan, that caution matters. The bank has been one of Wall Street’s strongest performers, so any sign that margins could get squeezed gets attention fast. Stephan Biggar of Argus Research said higher expenses are exactly the kind of thing investors worry about.

Dimon’s M&A comments were broad, but analysts say fintech and artificial intelligence could be obvious places to look. JPMorgan has done plenty of dealmaking over the years, including the 2023 purchase of First Republic Bank, but Dimon made it clear he sees acquisitions as a tool, not a strategy.

He was also upbeat about the business side of the bank. Investment banking fees could rise 10% or more in the second quarter, he said, with plenty of big deals already in the pipeline. JPMorgan’s markets business is also on track for double-digit growth this quarter, and Dimon said it may even come in a little better than expected.

So the message was mixed, but pretty clear: costs are moving higher, dealmaking is back on the table, and JPMorgan still thinks the business has momentum.