Wall Street’s dealmaking boom didn’t slow at Goldman Sachs (GS) and Morgan Stanley (MS) in the fourth quarter, with both firms capping off one of the strongest years for the investment banking business since the pandemic.
Goldman reported fourth quarter net income of $4.6 billion, or $14.01 in earnings per share, a 12% increase from a year ago. At Morgan Stanley, net income climbed 18% to $4.4 billion compared to the fourth quarter of last year, fueled by a 47% jump in dealmaking revenue.
2025 was a good year for these Wall Street banks.
Along with putting its Apple Card headache in the rearview, Goldman notched its highest year ever in equity trading fees. Those fees from Goldman’s markets unit jumped 23% while total trading for the full year rose 16% from 2024.
Full-year profits, dealmaking fees, and net revenue also climbed to their second-highest level ever, only behind a boom in 2021.
Goldman’s standout M&A advisory business soared 41% to $1.36 billion compared to the fourth quarter of 2024, which was also roughly in line with analyst expectations. The bank’s equity trading fees rose 25% during the fourth quarter to $4.3 billion.
“I think the world is set up at the moment to be incredibly constructive in 2026 for M&A and capital markets activity,” Goldman Sachs CEO David Solomon told analysts on Thursday.
The 2021 boom volume levels in M&A eventually “will be exceeded,” Solomon also said. “They might be exceeded in 2026.”
Morgan Stanley posted record full-year net revenues and net income. Its equities trading unit also raked in fees surpassing all previous levels. Equity trading fees rose 10% in the fourth quarter and 28% for the full year from 2024.
Revenue from Goldman’s dealmaking fees jumped 25% to $2.57 billion, in line with analyst expectations.
The dealmaking boom spread across Wall Street for most of 2025, but activity ebbed during the year’s final quarter for some of these firms’ rivals.
Goldman Sachs’ stock rose 4.6% on Thursday while Morgan Stanley’s stock gained 6%.
“We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026, activating a flywheel of activity across our entire firm,” Goldman’s Solomon said in a statement.
“Our Institutional Securities business served as a trusted advisor to clients as investment banking activity accelerated and global markets remained strong,” Morgan Stanley CEO Ted Pick said of his bank’s 2025 results.
Read more: Live coverage of corporate earnings
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