JPMorgan Chase Launches $6.7M Auto Callable Notes Tied to Amazon Stock Performance

Structure and Pricing Overview of Amazon-Linked Notes

JPMorgan Chase Financial Company LLC structured these notes to offer investors exposure to Amazon.com Inc. stock price performance via contingent interest payments. Priced at $1,000 per note on July 16, 2026, with minimum denominations of $1,000, the notes had an estimated value of $974.80 per $1,000 principal at pricing, reflecting embedded derivative costs and issuer margins. Investors paid $1,000 per note, with J.P. Morgan Securities LLC earning $15 per note in selling commissions, resulting in net proceeds of $985 per note to the issuer.

The pricing incorporates multiple payment scenarios based on Amazon stock’s performance relative to specified thresholds. The Initial Value of $249.89 per share, set on the pricing date, serves as the reference for automatic call and final payment calculations. This contingent interest design offers potentially higher yields contingent on favorable stock performance but limits upside participation and exposes investors to downside risk.

Contingent Interest Payment Terms and Review Schedule

The notes feature six quarterly review dates from October 16, 2026, through January 18, 2028. On each review date except the final one, Amazon’s closing stock price is compared to the Interest Barrier of $162.4285 per share (65% of initial value). If the stock closes at or above this barrier, investors receive a contingent interest payment of $30.875 per $1,000 principal, equal to a 12.35% annualized rate paid quarterly at 3.0875%. Unpaid contingent interest from prior review dates is paid when the barrier is subsequently met, allowing cumulative catch-up.

If the stock price remains below the barrier on a review date, investors forfeit the contingent interest for that period with no compensation. This structure transfers interest rate timing risk to investors, as the timing of barrier breaches determines receipt of accumulated interest payments.

Automatic Call Feature and Early Redemption Conditions

An automatic call triggers if Amazon stock closes at or above the Initial Value of $249.89 on any review date before maturity. Upon automatic call, notes are redeemed on the following Call Settlement Date, with investors receiving $1,000 principal plus the contingent interest payment for that review date and any unpaid prior contingent interest. No further payments occur after automatic call, capping investor returns despite potential further stock appreciation.

This call feature creates an asymmetric payoff, limiting upside participation while offering some downside protection through contingent interest. The automatic call applies on all review dates except the final maturity date, leaving full exposure to stock performance only during the last measurement period.

Maturity Scenarios and Principal Loss Risks

If not called early and the Final Value (closing price on January 18, 2028) is at or above the Trigger Value of $162.4285, investors receive full principal plus contingent interest payments at maturity. If the Final Value falls below the Trigger Value, principal repayment is reduced proportionally based on stock performance, potentially resulting in losses exceeding 35% of principal or total principal loss.

This downside risk highlights substantial exposure to Amazon stock declines. For instance, if Amazon closes at or below $162.42 at maturity, investors face significant principal losses. The note’s asymmetric payoff compensates the issuer for contingent interest via limited upside and full downside equity risk transfer to investors.

Credit Risk and Issuer Guarantees

The notes are unsecured obligations of JPMorgan Chase Financial Company LLC, a wholly owned finance subsidiary of JPMorgan Chase & Co., which provides an unconditional full guarantee of all payments. Investors bear credit risk of both the issuer and guarantor. The notes are not bank deposits, are uninsured by FDIC or other agencies, and are not obligations of any bank entity.

This dual credit exposure grants investors access to JPMorgan Chase & Co.’s credit strength but also subjects payments to risks from either entity’s credit deterioration. The guarantee is critical given the notes’ structured product nature without traditional banking protections.

Settlement Timeline and Trading Details

Priced on July 16, 2026, the notes are expected to settle around July 21, 2026. Minimum denominations are $1,000 with integral multiples. The CUSIP is 46661CQ25. Total offering principal was $6,706,000, with $100,590 paid in fees and commissions, yielding net proceeds of $6,605,410 to the issuer.

Payment dates are set for October 21, 2026; January 22, 2027; April 21, 2027; July 21, 2027; October 21, 2027; and final maturity on January 21, 2028. Review and payment dates may be postponed or accelerated due to market disruptions or acceleration events, providing issuer flexibility under extraordinary conditions.

Risk Factors and Investment Considerations

The filing stresses multiple material risks, including potential loss of significant principal, absence of contingent interest payments if stock price conditions are unmet, and forfeiture of fixed interest or dividends in exchange for contingent payments. The structure transfers interest rate certainty and equity downside risk to investors while capping upside through automatic call features.

Comprehensive risk disclosures appear in the prospectus supplement and product supplement documents, covering issuer and guarantor credit risk, Amazon stock volatility, liquidity risks, and structural risks of contingent payment design. Investors should assess whether the contingent interest yield justifies the risk of principal loss and limited upside relative to direct Amazon stock investment.

Distribution and Sales Information

J.P. Morgan Securities LLC serves as agent for JPMorgan Financial, receiving $15 selling commissions per $1,000 principal note, paid to affiliated or unaffiliated dealers. This compensation structure may create conflicts of interest, as affiliates benefit financially regardless of investor outcomes. The notes were distributed under a registered shelf offering, providing SEC oversight and investor protections.

Reference Stock and Adjustment Provisions

The notes reference Amazon.com Inc. common stock (Bloomberg ticker AMZN) with par value $0.01 per share. The Initial Value was fixed at $249.89 on pricing date July 16, 2026. A Stock Adjustment Factor of 1.0 applies initially and may be adjusted for corporate actions such as splits, dividends, or reorganizations to maintain economic intent.

Using Amazon stock concentrates exposure to this major technology company’s performance and market trends. Adjustment mechanisms preserve payment formula integrity amid corporate events.

Regulatory Filing and Disclosure Compliance

This pricing supplement was filed under Registration Statement Numbers 333-293684 and 333-293684-01 pursuant to Securities Act Rule 424(b)(2), as part of a registered shelf offering. The SEC neither approved nor disapproved the notes, and no state securities commissions have endorsed the disclosure. The filing underscores the legal importance of accurate securities law compliance.

Supporting documents include the prospectus, prospectus supplement, product supplement no. 3-I, and this pricing supplement, collectively providing detailed information on terms, risks, and issuer background to aid informed investment decisions.