Goldman Sachs predicts blockbuster 2026 for M&A mega-deals

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Goldman Sachs is anticipating a lucrative 2026 for major deals across Wall Street as it, along with other US banking giants, presented impressive financial results this week.

Goldman announced on Thursday that it brought in a record $9.3 billion in investment banking fees for 2025, a 21% increase from the previous year. The six major US lenders, including Morgan Stanley, Citi, Wells Fargo, JP Morgan, and Bank of America, collectively generated $593 billion in revenue in 2025, a 6% rise from the year before, with profits totaling $157 billion, an 8% increase.

CEO David Solomon of Goldman Sachs expressed optimism for Wall Street’s investment bankers and M&A advisors in the upcoming year, predicting a very successful 2026. He mentioned that the current environment is conducive to a prosperous year for M&A and capital markets activities.

The global M&A volumes surged to $5.1 trillion in 2025, a 42% increase from the previous year. Solomon also commented on the regulatory environment, hinting at the differences in approach between the current administration and the previous one.

Despite challenges like the government shutdown and concerns over tariff policies, the banking sector has seen a flurry of deal activities. Major mergers in 2025, such as the leveraged buyout of Electronic Arts and Alphabet’s acquisition of Wiz, contributed to Goldman’s success in global M&A.

Morgan Stanley, Citigroup, and JPMorgan also reported strong investment banking fees for the year, reflecting the overall positive sentiment in the industry. Citigroup, under the leadership of Jane Fraser, saw a 22% increase in investment banking fees, signaling progress in its efforts to catch up with its Wall Street counterparts.

Fraser’s strategic plan for Citigroup aims to increase earnings, streamline operations, and address longstanding deficiencies in data governance and risk management. The company’s reorganization has led to key personnel changes and a focus on achieving bigger profits in the coming year.

Overall, the outlook for Wall Street in 2026 appears promising, with an increasing number of deals expected in various sectors. The industry remains vigilant of potential economic challenges and geopolitical factors that could impact future transactions.