Goldman Sachs Sees Profit Increase Driven by Surge in Deal Activity

Goldman Sachs Headquarters in New York

Photo by Timothy Mulcare for WSJ

Goldman Sachs Surpasses Profit Expectations

Goldman Sachs delivered higher-than-anticipated earnings for the fourth quarter, achieving record annual revenue in its investment banking and markets segment. This performance was fueled by a surge in corporate dealmaking and unprecedented levels of borrowing.

The financial powerhouse saw its quarterly profit climb by 12%, reaching $4.62 billion, or $14.01 per share. However, overall revenue dipped by 3% to $13.45 billion.

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Impact of Apple Credit Card Deal

Goldman Sachs noted that its recent decision to transfer its Apple credit card business to JPMorgan Chase resulted in a one-time gain of $0.46 per share in the fourth quarter. Although this move and the revaluation of the portfolio caused a $2.26 billion reduction in revenue, this was counterbalanced by the release of $2.48 billion previously reserved for potential loan losses.

Dividend Increase and New Business Goals

The bank announced a $0.50 increase to its quarterly dividend, raising it to $4.50. Additionally, Goldman Sachs set more ambitious targets for its asset and wealth management division, aiming for returns in the upper teens rather than the mid-teens.

Wall Street Activity Accelerates

Driven by a robust stock market and renewed enthusiasm for mergers and public offerings among corporate leaders, Wall Street continues to gather steam. Banks are preparing for what could be a record-breaking year for IPOs, with companies like SpaceX and Anthropic considering going public.

Major financial institutions are also ramping up lending to support mergers, artificial intelligence initiatives, and infrastructure investments. According to Dealogic, debt underwriting across the industry in 2025 surpassed the previous peak set in 2020.

Global merger and acquisition activity rose by 44% in 2025 compared to the previous year, approaching historic highs.

Goldman Sachs’ Business Segments Show Growth

Within Goldman Sachs, investment banking revenue jumped 25% year-over-year in the fourth quarter, largely due to increased advisory fees and debt underwriting. The industry’s resurgence has been partly attributed to private equity firms returning to the market as company valuations and investor confidence improve.

Trading revenue also experienced a 19% increase from the prior year, bolstered by the firm’s lending to institutional clients.

For further information, contact AnnaMaria Andriotis at

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