Wall Street's Robust Dealmaking Resurgence

Wall Street's top banks, buoyed by a resurgence in big-ticket deals and IPOs, reported strong profits in 2025. Major players like Goldman Sachs and Morgan Stanley benefited from increased investment banking revenues, while the pipeline for M&A and IPOs looks promising for 2026 amid supportive market conditions.

Wall Street's leading investment banks are witnessing a surge in dealmaking, reflected in their impressive 2025 earnings reports. Key players such as Goldman Sachs and Morgan Stanley saw notable increases in investment banking revenues, fueled by a series of blockbuster deals and stock market listings.

Goldman Sachs experienced a 25% rise in investment banking fees, while Morgan Stanley's revenue soared by 47%. Citigroup also reported a record year in M&A advisory revenue. Despite some banks reporting modest quarterly results, JPMorgan Chase maintained its industry-leading position in investment banking fees, as indicated by Dealogic data.

The investment banking sector crossed $100 billion in global revenues, signaling a long-awaited recovery. The outlook remains strong for 2026, with a growing pipeline of IPOs and mergers. Companies like OpenAI and SpaceX are exploring public listings, while mega deals, such as Electronic Arts' $55 billion bid, underscore a robust market environment.

(With inputs from agencies.)