UPDATE: Goldman Sachs just reported a fourth-quarter profit that overwhelmingly beats Wall Street expectations, driven by an explosive surge in trading and dealmaking. The latest financial results, released this morning, showcase the bank’s resilience and strategic positioning in an evolving market environment.
Goldman Sachs’ profit per share soared to $14.01, surpassing analysts’ expectations of $11.67. This remarkable performance is attributed to a booming investment banking sector, as companies increasingly pursue deals in a friendlier regulatory environment under US President Donald Trump. CEO David Solomon expressed optimism, stating, “The world is set up at the moment to be incredibly constructive in 2026 for M&A and capital markets,” during a call with analysts.
The bank’s investment banking fees surged 25 percent to $2.58 billion, though it slightly missed the anticipated $2.66 billion. Shares of the Wall Street giant jumped 3.8 percent in morning trading in New York, reflecting investor confidence as the stock has already risen over 50 percent in 2025.
Goldman’s equity trading revenue hit a record $4.31 billion, up from $3.45 billion a year earlier, while trading revenue for fixed income, currencies, and commodities rose 12.5 percent to $3.11 billion. Analysts are bullish about the continuation of the recent rally in mergers and acquisitions, especially as significant investments in artificial intelligence fuel more technology deals.
Goldman Sachs played a pivotal role in several major mergers last year, including the $56.5 billion leveraged buyout of Electronic Arts and Alphabet’s $32 billion acquisition of cloud security firm Wiz. These strategic moves solidified Goldman’s status as a leader in global M&A, advising on a staggering $1.48 trillion in total deal volume for 2025 and earning $4.6 billion in fees.
The overall global M&A volume soared to $5.1 trillion in 2025, marking a 42 percent increase from the previous year, according to Dealogic data. With the IPO market rebounding, Goldman is poised to compete for a wave of upcoming US listings, including potential IPOs from major players like SpaceX and OpenAI.
In a strategic shift, Goldman raised its pre-tax margin targets for its assets and wealth management business to 30 percent, up from a previous goal in the mid-20s. The unit achieved a 25 percent pre-tax margin in 2025, with management fees reaching an unprecedented $3.09 billion in a single quarter.
As part of its growth strategy, Goldman recently acquired Innovator Capital Management, an active exchange-traded fund provider, in a $2 billion deal. The bank’s assets under supervision grew significantly to $3.61 trillion from $3.14 trillion a year earlier.
In addition, Goldman announced an increase in its quarterly dividend to $4.50 per share, signaling strong confidence in sustained earnings growth. Analyst Stephen Biggar from Argus Research remarked, “The dividend increase is a powerful testament to management’s faith in sustainably higher earnings from the franchise.”
Goldman’s expenses have risen due to investments in AI operations and increased compensation for salaries and bonuses, with operating expenses climbing 18 percent to $9.72 billion in the fourth quarter of 2025.
As the financial landscape evolves, Goldman Sachs remains at the forefront, navigating through challenges while setting ambitious targets for the future. Investors and stakeholders will be watching closely as the bank prepares for what promises to be an exciting year ahead in investment banking and capital markets.
