Goldman Sachs exceeded Wall Street’s profit expectations for the fourth quarter, fueled by a surge in dealmaking and trading activities. The investment bank expressed optimism for the year ahead, particularly for investment banking. Goldman Sachs is a leading global investment banking, securities, and investment management firm that provides a wide range of financial services to a substantial and diversified client base. The firm is headquartered in New York and maintains offices in all major financial centres around the world.
Investment banking fees rose 25 per cent to $US2.58 billion, although slightly below analysts’ forecasts. Equity revenue reached a record $US4.31 billion, while fixed income, currencies, and commodities trading revenue increased by 12.5 per cent to $US3.11 billion. The positive results reflect a broader rally in the US market and increased volatility, as investors reacted to the Federal Reserve’s interest-rate path and the potential of artificial intelligence companies.
Goldman advised on significant mergers in 2025, including the $US56.5 billion leveraged buyout of Electronic Arts and Alphabet’s $US32 billion acquisition of Wiz. The bank secured the top spot for global M&A in 2025, advising on $US1.48 trillion in deals and earning $US4.6 billion in fees. Total M&A volumes swelled to $US5.1 trillion in 2025, marking a 42 per cent increase from the previous year.
Looking ahead, Goldman raised its pre-tax margin targets for its assets and wealth management business to 30 per cent in the medium term. The bank’s assets under supervision grew to $US3.61 trillion. Goldman recently decided to acquire Innovator Capital Management in a $US2 billion deal. The investment bank increased its quarterly dividend to $US4.50 per share, signalling confidence in its future performance.
