Johnson & Johnson, Goldman Sachs, Citigroup, JP Morgan, and Wells Fargo Report 3Q Results and G-255 Trading Indicators for October 14, 2025
Issuer Credit Indicator / Equity Indicator
Johnson & Johnson reported 3Q 2025 revenue growth of 6.8% YoY and acceleration over 2Q. Operating earnings rose 5.4% YoY
3Q Operating Metrics
Innovative Medicine revenue rose 6.8% YoY
Med Tech revenue rose 6.8% YoY
Worldwide revenue rose 6.8% YoY
Total US sales rose 6.2% YoY
Total International sales rose 7.6% YoY
Company raised 2025 guidance for a third straight quarter as 2025 revenue is now expected to be 5.4% - 5.9% YoY
Financial Position:
JNJ does not release balance sheet data until they file their 10-Q in November. However, the JNJ balance sheet has been re-levering for four of the last six fiscal quarters despite the AAA investment-grade rating.
Total Debt on the JNJ balance sheet rose 24% YoY through the second quarter to $50 billion.
JNJ did employ balance sheet to repatriate returns to shareholders in 2Q 2025.
Credit Trading Model Indicator: There are currently 24 liquid secondary USD JNJ bonds totalling $26.4 billion . 14 trading indicators are overvalued and 2 are short trade indicators. Both short trade indicators are within 3 years of maturity.
Recent new JNJ supply: JNJ 5 03/01/35 issued February 18, 2025 +47/10Y and currently trades -9 bp to NIP
Equity Indicator: JNJ equity is attractive long below $170 per share.
Goldman Sachs (GS A2/BBB+ attractive) reported 3Q earnings.
Revenue rose 20% YoY while operating earnings rose 35% YoY
GS is retaining capital and
3Q Deposits rose by 5% QoQ and 11% YoY to $490 billion.
3Q Asset quality is declining slightly QoQ and YoY.
3Q Client assets "under supervision" rose by $159 billion (+7%) in the quarter and 9% YoY.
3Q Loan growth was $2% QoQ and 11% YoY.
3Q Net interest income rose 24% QoQ and 64% YoY
3Q Non - interest revenue fell -1% QoQ and rose 9% YoY
Financial Position: Tier 1 capital is 14.4 % vs 14.5 % at June 30 and 14.1% @ September 30, 2024. Goldman did not grow its trading book to the extent that JP Morgan (JPM) and Wells Fargo (WFC) did and limited share buybacks owing to price. GS returned $3.2 billion to shareholders in the quarter. The net is Goldman Sachs balance sheet de-levered slightly in the quarter but still retains $70 billion in additional total debt and $11 billion in net debt YoY.
Credit Trading Indicator: The GS secondary trading USD curve has 64 liquid bonds (floating and fixed rate bank notes and Senior Holdco and Subordinated bonds and Perp) totaling $134 billion with 26 overvalued and 14 short trade indicators.
Recent new supply: 4/15/25 GS 5.218 04/23/31 (sold as 6nc5) +125/5Y trades -56bp to NIP
Equity Trading Indicator: Goldman Sachs (GS) equity is attractive long below $714/shr
Citigroup (C, A3/BBB+ attractive long both credit and equity) reported 3Q quarter earnings
Revenue rose 9% YoY while operating income rose 16% YoY
C is retaining capital YoY
3Q Deposits rose 2% QoQ and 6% YoY.
3Q Asset quality is declining slightly QoQ and YoY.
3Q Client assets rose 8% YoY.
3Q Loan growth rose 1% QoQ and 7% YoY.
3Q Net interest income fell (-2%) QoQ and rose 12% YoY
3Q Trading income fell -3% QoQ and rose 15% YoY
3Q Investment Banking income rose 17% QoQ and rose 23% YoY
Financial Position: Tier 1 capital is 13.2% vs 13.5 % at June 30 and 13.7% @ September 30, 2024
Company used balance to repatriate cash to shareholders in 3Q 2025. Citi returned $6.1 billion to shareholders in dividend and share repurchases.
Net debt on the Citi balance sheet continues to fall YoY by -$12.2 billion and by -$9 billion YoY
Credit Trading Indicator: The C secondary USD trading curve has 79 liquid bonds (fixed and floating rate bank notes, Sr. Holdco and subordinated bonds and Perp) totaling $142 billion with 8 undervalued and no attractive long trades.
Recent new supply: July 16, 2025 C 6 â PERP currently trading +$2.55 to NIP
Equity Trading Indicator: C equity is an attractive long trade below $90.35
JP Morgan (JPM, A1/A attractive short credit and attractive long equity ) reported 3Q Results
Revenue rose 11.58% YoY and operating earnings that rose 10%.
JPM is retaining capital and
3Q Deposits fell by almost $14 billion QoQ but are $118 billion (+5%) higher YoY.
3Q Asset quality is flat QoQ and YoY.
3Q Client assets rose 18% YoY.
3Q Loan growth was $2% QoQ and 7% YoY.
3Q Net interest income rose 3% QoQ and 2% YoY.
3Q Investment banking income rose 5% QoQ and 17% YoY
3Q Trading income fell -1% QoQ and rose 19% YoY.
Financial Position: Tier 1 capital is 14.8% vs 15.1% at June 30 and 15.3% YoY Trading assets rose for a 6th quarter out of 9 to a record $952 billion. JPM dividend growth is 9% per year. Total debt rose $132 billion YoY and net debt rose $145 billion YoY.
JPM spent $14.1 billion on share repurchase and dividends in the quarter.
Credit Trading Indicator: The JPM secondary USD trading curve has 88 liquid bonds (fixed and floating rate bank notes, Sr. Holdco and Subordinated bonds and Perp) totaling $217 billion with 58 overvalued indicators and 21 short trade indicators.
Recent new supply: July 16, 2025 JPM 5.576 07/23/36 subordinated +112.5/10Y trades -12bp to NIP
Equity Trading Indicator: JPM equity is an attractive long trade below $290.95 /shr
Wells Fargo (WFC, A3/BBB attractive short credit/attractive long equity ) Reported 3Q results:
Revenue rose 5.25% YoY and 3Q operating income rose +11% YoY
WFC is not retaining capital.
3Q Deposits rose by almost $27 billion QoQ and $19 billion YoY.
3Q Net Interest income rose 2% QoQ and 2% YoY
3Q Asset quality is improving
3Q Client assets rose 7.7% YoY to $2.43 trillion.
3Q Loan growth was $21 billion QoQ and $38 billion (3.3%) YoY
2025 outlook is unchanged
Financial Position: Wells Fargo (WFC) CET 1 capital is 11.0 % vs 11.1% at June 30 and 11.3% at 9/30/24
Wells Fargo (WFC) dividend has remained stable as the company adds to trading assets and repurchases equity near all – time high prices.
3Q Net Debt rose $116.7 billion YoY and $55.4 billion QoQ as trading assets continue to grow.
Wells Fargo repurchased 74.6 million shares, or $6.1 billion, of common stock in third quarter 2025
Credit Trading Indicator: The WFC secondary trading USD curve has 54 liquid bonds (fixed and floating rate bank notes, Sr. Holdco and subordinated bonds and Perp) totaling $132 billion with 36 overvalued indicators and 4 short trade indicators.
Recent new supply: September 8 2025 WFC 4.892 09/15/36 (issued as an 11nc 10) @ 85/10Y trades +.5bp to NIP
Equity Trading Indicator: WFC equity is an attractive long trade its current trading level.
Disclaimer - This report is not intended as, and does not constitute an offer, or a solicitation to buy or sell any securities or financial instruments. All data, levels, opinions, and representations herein are provided for informational purposes only and should not be relied upon for making investment decisions. Past performance is not indicative of future results. The authors of this report assume no liability for losses or damages arising from the use of this information. Investors should consult with a qualified financial advisor before making any investment decisions. The information in this report is based on sources believed to be reliable, but no guarantee is made as to its accuracy, completeness, or timeliness.