Over the past year, Goldman Sachs shares have rallied nearly 70%, driven by heightened merger and acquisition activity, record volatility in trading markets and substantial advisory fees linked to elevated debt issuance. The firm advised on $1.48 trillion of M&A volume in 2025, securing $4.6 billion in fees and reclaiming the top global deal advisory position. Equity trading revenue surged to an all-time high of $4.31 billion in Q4, while fixed income, currencies and commodities trading rose 12.5% year-over-year to $3.11 billion, underscoring the bank’s ability to capture market dislocations and corporate financing demand.

In the fourth quarter, Goldman delivered earnings per share of $14.01, surpassing consensus estimates, and achieved a 17.1% return on tangible common equity. Net revenues totaled $13.45 billion, with investment banking fees of $2.58 billion and management fees reaching a quarterly record of $3.09 billion. The firm returned $16.78 billion to shareholders through dividends and buybacks, and raised its quarterly dividend by 9.8% to $4.50 per share, reflecting durable cash flow generation even after recognizing a $2.26 billion pre-tax loss related to the Apple Card exit.

Goldman’s Asset & Wealth Management unit grew assets under supervision from $3.14 trillion a year ago to $3.61 trillion, driven by net inflows into its platform and the Innovator Capital Management acquisition. The division achieved a 25% pre-tax margin in 2025 and now targets a 30% margin in the medium term, up from a previous goal in the mid-20s. This shift reflects disciplined cost management, technology investments to automate advisory services and a strategic emphasis on recurring revenue streams to stabilize overall firm performance.

CEO David Solomon disclosed that Goldman Sachs has formed a dedicated team to evaluate opportunities in prediction markets, meeting with leadership from Kalshi and Polymarket over two separate two-hour sessions. With certain products operating under Commodity Futures Trading Commission regulation and resembling derivative contracts, the firm believes these markets could integrate with its institutional offerings. Solomon cautioned, however, that adoption may progress more slowly than some commentators expect, even as the bank allocates resources to understand regulatory boundaries and infrastructure requirements.