Goldman Sachs reported stronger-than-expected second-quarter earnings after a sharp increase in trading activity and a resurgence in corporate dealmaking boosted revenues across its markets and investment banking businesses, according to a report by Reuters.
The Wall Street bank posted net income of $6.63bn, or $20.98 per share, for the quarter ended 30 June, comfortably exceeding analysts’ expectations of $14.48 per share. The results helped send Goldman shares to a record high as investors welcomed broad-based strength across the firm’s core businesses.
For hedge funds, the standout performance came from Goldman’s markets division, where heightened volatility created by inflation concerns, shifting interest-rate expectations and geopolitical tensions generated exceptional trading conditions.
Equities trading revenue climbed 72% year-on-year to a record $7.42bn, while fixed income, currencies and commodities (FICC) revenue rose 32% to $4.59bn as clients repositioned portfolios amid uncertainty over Federal Reserve policy and the conflict in the Middle East.
Chief executive David Solomon said momentum had accelerated across the firm’s businesses and pointed to artificial intelligence as a key long-term driver of capital markets activity.
He said the build-out of AI infrastructure remained in its early stages and was expected to support several years of elevated financing, strategic transactions and capital formation.
The rebound in mergers and acquisitions also provided a significant boost to results.
Investment banking fees rose 55% from a year earlier to $3.4bn, driven by higher advisory revenues alongside increased equity and debt underwriting activity. Goldman said it advised on approximately $1.2tn of announced M&A transactions during the first half of 2026, maintaining its position as the leading adviser globally.
The increase in corporate activity comes as companies continue to pursue acquisitions and financing linked to AI investment, despite ongoing geopolitical uncertainty.
Goldman’s asset and wealth management division also delivered a strong quarter, with revenue increasing 20% to $4.6bn as the bank continues its strategy of building a more diversified earnings base beyond its traditionally cyclical trading and investment banking operations.
The business also appeared to avoid the redemption pressures affecting parts of the private credit industry.
Goldman’s non-traded private credit vehicle, GS Credit, reported second-quarter repurchase requests of around 3.24%, remaining comfortably below its 5% quarterly redemption limit. The bank also raised $31bn of private credit capital during the quarter, suggesting investor demand for its private markets platform remains resilient despite broader concerns over liquidity across the sector.
The results follow similar earnings beats from other major US banks, including JPMorgan Chase and Bank of America, reinforcing expectations that capital markets activity has strengthened significantly during 2026.
