This week, Goldman Sachs forecasted a strong year for big trades on Wall Street in 2026, following reports of solid earnings from major U.S. banking institutions.
On Thursday, Goldman indicated it was profitable, projecting its investment banking fees will reach $9.3 billion in 2025—an increase from $7.7 billion the previous year.
Collectively, Goldman and five other major U.S. banks (Morgan Stanley, Citi, Wells Fargo, JPMorgan, and Bank of America) are expected to generate total revenues of $593 billion in 2025, up 6% from the previous year, with profits around $157 billion, reflecting an 8% growth.
Goldman Sachs’ CEO, David Solomon, expressed optimism for next year, hinting that 2026 could be quite favorable for investment bankers and M&A advisers.
He stated, “The world is currently set up to be incredibly constructive for M&A and capital markets in 2026,” during a conference call with analysts. Solomon believes the next few years might see a generally positive climate for these activities unless an unexpected event disrupts progress.
Interestingly, he also commented on the current regulatory climate, suggesting that the Biden administration’s approach to M&A scrutiny has been notably different from previous years.
Data from Dealogic suggests that global M&A activity may soar to $5.1 trillion in 2025, which would represent a staggering 42% increase compared to 2024. Solomon noted that CEOs seem to be feeling optimistic about significant consolidations being feasible.
It appears that Goldman’s deal pipeline—referring to potential agreements that are yet to be finalized—is at its highest point in four years.
Solomon’s insights come amid actions by the Trump administration, including regulatory reductions and interest rate cuts by the Federal Reserve, which have contributed to increased deal-making activity despite challenges like the historic U.S. government shutdown and fluctuating tariff policies.
Goldman was involved in some of 2025’s biggest mergers, including a $56.5 billion buyout of Electronic Arts and Alphabet’s $32 billion purchase of cloud security firm Wiz, essential in regaining its status in global M&A.
However, Morgan Stanley’s CEO Ted Pick cautioned of potential complexities in the economic landscape and geopolitical issues that could impact forecasts for new deals, emphasizing the need for patience.
Citigroup, under Jane Fraser’s leadership, reported a 22% rise in investment banking fees, reaching $4.4 billion in 2025, building upon their commitment to restructuring and enhancing profitability.
Fraser has made significant changes within the organization, aiming for improved efficiency and higher profits in 2026. This includes initiatives like better governance and risk management while dealing with staff transitions within the bank.
