Wall Street Bankers Shift Focus To Busy 2026 After Cashing In On Big Deals
1 week ago
Goldman Sachs and Morgan Stanley posted fourth-quarter profits that beat Wall Street expectations on Thursday, benefiting from a surge in dealmaking and stronger trading revenues in a turbulent market.
Equity traders capitalized on volatility and a broader rally in the U.S. market as investors speculated on the Federal Reserve's interest-rate path and the prospects for AI companies.
Goldman topped the global M&A rankings again in 2025, advising on huge deals including the more than $56 billion leveraged buyout of Electronic Arts and Alphabet's $32 billion acquisition of cloud security firm Wiz.
Both Goldman and Morgan Stanley are poised to benefit from the rebounded IPO market and will compete for a flurry of U.S. listings with the likes of SpaceX, OpenAI and Anthropic gearing up for potential listing this year.
Investment banking revenue advanced 47% in the fourth quarter at Morgan Stanley and total revenue for all of 2025 hit a record. It also boosted its quarterly dividend.
Goldman increased its dividend too.
While both banks expressed optimism for 2026, Morgan Stanley CEO Ted Pick warned about geopolitical risks and a "complicated" macroeconomic backdrop in a call with analysts.
Investors appeared optimistic ... shares of Morgan Stanley added more than five percent in Thursday morning trading while Goldman’s shares rose more than four percent.
Equity traders capitalized on volatility and a broader rally in the U.S. market as investors speculated on the Federal Reserve's interest-rate path and the prospects for AI companies.
Goldman topped the global M&A rankings again in 2025, advising on huge deals including the more than $56 billion leveraged buyout of Electronic Arts and Alphabet's $32 billion acquisition of cloud security firm Wiz.
Both Goldman and Morgan Stanley are poised to benefit from the rebounded IPO market and will compete for a flurry of U.S. listings with the likes of SpaceX, OpenAI and Anthropic gearing up for potential listing this year.
Investment banking revenue advanced 47% in the fourth quarter at Morgan Stanley and total revenue for all of 2025 hit a record. It also boosted its quarterly dividend.
Goldman increased its dividend too.
While both banks expressed optimism for 2026, Morgan Stanley CEO Ted Pick warned about geopolitical risks and a "complicated" macroeconomic backdrop in a call with analysts.
Investors appeared optimistic ... shares of Morgan Stanley added more than five percent in Thursday morning trading while Goldman’s shares rose more than four percent.
