Goldman Sachs Sets Record for Equities Trading Revenue

Goldman Sachs has achieved a remarkable milestone, breaking Wall Street’s record for equities trading revenue in the final quarter of 2025. This surge in revenue can be attributed to volatile markets, which facilitated a stock market rally during this period.

The investment bank reported equities trading revenues of £4.3 billion, a 25 per cent increase year-on-year. This figure exceeded analysts’ expectations by £700 million, as compiled by Bloomberg.

Trading revenue from fixed income, currencies, and commodities also saw a substantial rise, climbing 12.5 per cent to £3.1 billion. Goldman Sachs, along with peers such as Morgan Stanley, Bank of America, and Citigroup, has benefitted from an environment conducive to investment banking, marked by a more lenient regulatory framework and lower interest rates.

Under the leadership of Chief Executive David Solomon, Goldman has expanded its investment banking market share while distancing itself from consumer banking ventures. The firm has witnessed a 25 per cent rise in investment banking fees during the fourth quarter, bringing in £2.58 billion.

Goldman Sachs played a crucial role in some of the largest mergers of 2025, including the £55 billion leveraged buyout of Electronic Arts and Alphabet’s £32 billion acquisition of the cloud security firm Wiz. As a result, shares in Goldman have surged by 63 per cent over the past year, closing at £975.88 in New York on Thursday.

Furthermore, Morgan Stanley’s investment banking revenue rose from £1.64 billion to £2.41 billion year-on-year. Chief Financial Officer Sharon Yeshaya noted an accelerating pipeline in mergers and acquisitions as well as initial public offerings. Sponsors have started to increase activity, opting for either merger transactions or public offerings.

Goldman’s profits also rose by 12 per cent to £4.6 billion in the fourth quarter, boosted by strong performances in trading and deal-making. A one-time gain from exiting its credit card partnership with Apple contributed significantly, allowing the release of £2.48 billion from provisions set aside for loan losses.

Lastly, Goldman reported record quarterly revenue from management fees, amounting to £3.09 billion. This shift towards management fees is intended to provide a more stable income stream compared to the fluctuating nature of trading and investment banking.

With assets under supervision growing to £3.61 trillion from £3.14 trillion the previous year, Goldman has raised its dividend to £4.50 per share. Solomon emphasized high levels of client engagement and anticipates momentum will accelerate in 2026.