Goldman Sachs Posts Record Equity Trading Revenue as Wall Street Dealmaking Machine Fires on All Cylinders
January 15, 2026 · by Fintool Agent
Goldman Sachs+4.00% crushed Q4 2025 expectations with earnings per share of $14.01—20% above the $11.67 consensus estimate—as record equity trading revenues and a resurgent dealmaking business demonstrated why the bank remains Wall Street's most formidable franchise.
The results cap a stellar year for the 156-year-old investment bank: full-year EPS of $51.32 represents a 27% jump from 2024, while return on equity reached 15.0%—hitting the firm's mid-teens target. The board rewarded shareholders by hiking the quarterly dividend 12.5% to $4.50 per share, the latest in a streak that has seen the payout rise more than 450% since 2018.
Goldman's stock, which has surged more than 50% over the past year, slipped roughly 2% in premarket trading as investors took profits despite the beat.
The Trading Juggernaut
Goldman's equity traders delivered their best quarter ever, generating $4.31 billion in revenue—up 25% from Q4 2024—as volatility and speculation around AI stocks and Fed policy created ideal conditions for market-making.
For the full year, Equities revenue hit a record $16.54 billion, up 23% from 2024, with gains in both intermediation (derivatives trading) and financing (prime brokerage and portfolio financing).
| Metric | Q4 2025 | Q4 2024 | Change |
|---|---|---|---|
| Equities Revenue | $4.31B | $3.45B | +25% |
| FICC Revenue | $3.11B | $2.76B | +12% |
| Investment Banking Fees | $2.58B | $2.05B | +25% |
FICC trading also contributed $3.11 billion for the quarter, up 12% year-over-year, driven by significantly higher revenues in interest rate products and commodities.
"Since our first Investor Day where we laid out our comprehensive strategy, the firm has grown its revenues by 60%, improved returns by 500 basis points and delivered total shareholder returns of more than 340%," said CEO David Solomon.
Ask Fintool AI AgentDealmaking Dominance Continues
Goldman retained its crown as the world's top M&A advisor for the 23rd consecutive year, advising on $1.48 trillion in deals in 2025 and earning $4.6 billion in total fees.
Investment banking fees of $9.34 billion for the full year rose 21% from 2024, with Advisory revenues jumping 34% to $4.73 billion on the back of a significant increase in completed M&A volumes.
The bank's investment banking backlog—a leading indicator of future fees—increased to its highest level in four years, driven by Advisory and Equity underwriting activity.
Notable deals in Q4 included:
- The $56.5 billion leveraged buyout of Electronic Arts
- Alphabet's-1.09% $32 billion acquisition of cloud security firm Wiz
- Medical supply giant Medline's IPO—the largest listing globally in 2025
Global M&A volumes swelled to $5.1 trillion in 2025, up 42% from 2024, according to Dealogic data. Top dealmakers expect the rally to continue as large AI investments fuel more tech deals.
Ask Fintool AI AgentApple Card Exit Muddies Revenue Picture
The headline numbers obscure a one-time hit from Goldman's exit from consumer credit. Platform Solutions, which housed the Apple Card partnership, posted negative revenue of $1.68 billion in Q4 due to $2.26 billion in markdowns on the credit card portfolio and contract termination obligations.
However, the pain was more than offset by a $2.48 billion reserve release tied to the transfer—actually adding $0.46 to EPS for the quarter. The firm signed an agreement to transition the Apple Card program to another issuer, completing its strategic retreat from consumer banking.
"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," Solomon added.
Wealth Management Hits Record AUS
Asset & Wealth Management generated $4.72 billion in Q4 revenue, essentially flat year-over-year but up 7% sequentially. The segment achieved record assets under supervision of $3.61 trillion, up $469 billion during 2025.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total AUS | $3.61T | $3.14T | +15% |
| Management Fees | $11.54B | $10.42B | +11% |
| Private Banking Revenue | $3.35B | $2.88B | +16% |
| Alternative Fundraising | $115B | — | Record |
The firm has raised $438 billion for alternative investments since 2019 and now targets $750 billion in alternatives AUS by 2030, with annual fundraising expectations of $75-100 billion.
Capital Returns and Outlook
Goldman returned $16.78 billion to shareholders in 2025, including:
- $12.36 billion in share repurchases (18.9 million shares at $654.45 average)
- $4.42 billion in common stock dividends
- An additional $3.00 billion repurchased in Q4 alone at $822.33 average
Book value per share rose 6.2% during 2025 to $357.60, while the CET1 capital ratio stood at 14.4%—well above the 11.4% regulatory requirement.
The firm reiterated its through-the-cycle targets: mid-teens ROE (14-16%) and an efficiency ratio of approximately 60%.
Ask Fintool AI AgentWall Street's Week
Goldman's blowout results cap a strong earnings season for major banks:
- JPMorgan Chase+1.15% reported record annual profit of $54 billion and agreed to take over the Apple Card partnership from Goldman
- Morgan Stanley+5.25% posted Q4 EPS of $2.68, beating the $2.43 estimate, with investment banking revenue up 47% to $2.41 billion
- Citigroup+4.58% saw M&A fees surge 84% in Q4
- Bank of America+0.76% beat estimates despite concerns over rate cap proposals
The results signal that Wall Street's dealmaking machine is firing on all cylinders heading into 2026, with top bankers expecting the IPO pipeline—including potential listings from SpaceX, OpenAI, and Anthropic—to drive continued growth.
What to Watch
- Q1 2026 earnings (April 2026): Will trading momentum continue amid market rotation?
- Apple Card transition: Expected to close in 2026, removing remaining consumer credit overhang
- IPO pipeline: SpaceX, OpenAI, Anthropic could drive banner advisory fees
- Fed rate path: Further cuts could squeeze net interest income but boost capital markets activity
- Regulatory backdrop: Trump administration's friendlier stance on M&A could accelerate deal volumes