Goldman Sachs reported fourth-quarter profits that surpassed Wall Street forecasts, fueled by robust activity in dealmaking and trading. The investment bank expressed optimism for investment banking prospects in the coming year. 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. With mergers and acquisitions climbing to near-record levels in 2025, top dealmakers anticipate this trend will continue, particularly as large AI investments stimulate further tech deals.
The bank’s investment banking fees increased by 25 per cent to $US2.58 billion from the previous year. Equity revenue reached a record $US4.31 billion, up from $US3.45 billion, while fixed income, currencies, and commodities trading revenue rose by 12.5 per cent to $US3.11 billion. Goldman Sachs advised on significant mergers in 2025, including the $US56.5 billion leveraged buyout of Electronic Arts and Alphabet’s $US32 billion acquisition of cloud security firm Wiz. This helped the firm secure the top spot for global M&A in 2025, advising on $US1.48 trillion in deals and earning $US4.6 billion in fees.
Goldman Sachs raised its pre-tax margin targets for the assets and wealth management business, forecasting it at 30 per cent in the medium term. The bank recorded its highest-ever revenue from management fees in a single quarter, at $US3.09 billion. The IPO market has rebounded in recent months, and advisors such as Goldman are positioned to compete for a wave of US listings expected in 2026. Profit per share came in at $US14.01, exceeding analysts’ expectations of $US11.67.
Furthermore, the investment bank has increased its quarterly dividend to $US4.50 per share in the first quarter, signalling confidence in a strong year ahead. Goldman recently struck a deal with JPMorgan Chase to take over its Apple card partnership, and expected a 46 cent per share increase in its results due to the exit. Shedding the Apple card is Goldman’s latest big step away from its consumer business. The bank’s earnings also got a lift from the release of $US2.48 billion from its stockpiles to cover loan losses from the card.
