Goldman Sachs profit tops estimates on trading boom, corporate deal spree

Goldman's asset and wealth management revenue rose 20% to $4.60 billion, continuing its strong run. The bank has pushed for a stronger footing in the business to build a steadier earnings base and reduce its dependence on the trading and investment banking arms, which are more volatile. "We see a lot of opportunity to grow asset and wealth management. We feel good about the acquisitions that have allowed us to accelerate growth and we continue to look into things that will allow us to do that," Solomon said. Goldman's non-traded business development company private credit fund, part of the asset and wealth management division, has bucked the weakness in the industry. Private credit players have come under pressure from shareholders looking to redeem their shares, on concerns that AI could disrupt the business models of software companies in their portfolios. GS Credit, however, said this month that second-quarter repurchase requests were at roughly 3.24%, below its 5% cap. The bank raised $31 billion for private credit in the second quarter. A surge in $10-billion-plus "mega-deals" drove global M&A volumes to record levels in the first half of 2026, according to LSEG data, helping investment banks such as Goldman that earn fees from advising on such transactions. Goldman's investment banking fees rose 55% to $3.4 billion in the quarter, helped by higher stock and debt sales, as well as a pickup in advisory revenue. Corporate dealmaking remained resilient despite the conflict in the Middle East, driven in part by companies' efforts to expand and strengthen their AI businesses. Volumes could end the year near 2021 highs, Goldman has said. Goldman advised on $1.2 trillion of announced mergers and acquisitions in the first half of 2026, marking a record pace for any investment bank and about $425 billion ahead of its closest rival, Chief Financial Officer Denis Coleman said. Investors will parse Wall Street results for signals on where the economy is headed, and to gauge the outlook for bank stocks, which Bank of America analysts said had been an "island of stability" even as fears of AI disruption rocked the financial industry. Goldman's peers JPMorgan Chase JPM.N and Bank of America BAC.N also reported higher quarterly profits. NEW YORK, July 14 (Reuters) - Goldman Sachs GS.N exceeded second-quarter profit expectations as dealmaking picked up and market volatility amid the U.S.-Iran war boosted equities revenue to a record, sending shares to an all-time peak. Inflation risks and uncertainty over interest rates kept investors on edge, resulting in aggressive portfolio reassessment and stronger revenue from equities trading desks. Some analysts said SpaceX's SPCX.O initial public offering may have provided an additional lift to volumes. Goldman was one of the lead underwriters. The equities business fetched revenue of $7.42 billion, surging 72% from a year ago. Revenue from the fixed income, currency and commodities business jumped 32% to $4.59 billion. "Momentum has accelerated throughout our businesses," CEO David Solomon said in a statement. "The buildout of AI infrastructure remains in its early stages, and we believe this multi-year investment cycle will continue to drive elevated levels of strategic activity, financing and capital formation across markets," he added on a call with analysts. Goldman shares jumped to a record high and were last up 7.2%. The stock was the biggest gainer on the blue-chip Dow .DJI. Total profit was $6.63 billion, or $20.98 per share, for the three months ended June 30. That compares with $3.72 billion, or $10.91 per share, a year earlier. Analysts were expecting earnings per share of $14.48, according to data compiled by LSEG. "While we had partly anticipated the strong gearing of Goldman to the current market environment, these results have significantly exceeded expectations," J.P. Morgan analysts led by Kian Abouhossein wrote in a note. Goldman shares have outperformed the benchmark S&P 500 index .SPX this year, stirring some concerns about how much further the stock can run.

Goldman Sachs profit tops estimates on trading boom, corporate deal spree

Asset and wealth management revenue continues to grow

Investment banking fees rise as mega-deals boost advisory work

Quarterly profit beats expectations on strong trading and dealmaking

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