Goldman Sachs and Morgan Stanley reported blockbuster earnings, with Goldman’s profit reaching $4.6 billion in Q4 2025, up 12% YoY. Goldman set a new Wall Street record with $4.3 billion in equities trading revenue. Morgan Stanley saw a 93% YoY revenue increase in debt-writing operations. Both banks anticipate a strong 2026 with a surge in M&A and IPOs.

Goldman’s total revenue of $13.4 billion in Q4 2025 was down 3% YoY due to selling its Apple Card loan portfolio. Despite exiting the consumer space, Goldman is exploring opportunities in prediction markets. Morgan Stanley expects more deals in healthcare and industrials, with sponsors increasing activity in M&A and IPOs.

Both banks are optimistic about an accelerating pipeline in M&A and IPOs, with Goldman’s deal backlog at a four-year high. CEO David Solomon sees potential for a full-on M&A and sponsor cycle. Morgan Stanley CFO Sharon Yeshaya anticipates more deals in healthcare and industrials, with sponsors increasing activity in M&A and IPOs.

Read more at Yahoo Finance: Goldman Sachs, Morgan Stanley Riding High on Dealmaking Wave