Goldman Sachs CEO David Solomon confirmed that the firm has formed a dedicated team to evaluate CFTC-regulated prediction market platforms. Over the past quarter, Solomon met with executives at several leading prediction market operators to assess institutional liquidity potential and hedging applications. While retail adoption of similar products by Robinhood and Coinbase has already exceeded 200,000 active users, Solomon cautioned that regulatory clarifications from the CFTC and SEC may take 12–18 months, potentially delaying launch timelines. The effort underscores Goldman’s strategy to diversify fee streams beyond traditional fixed income and equities trading.

In a recent note, Bank of America Securities analyst Ebrahim Poonawala raised Goldman Sachs’s outlook for investment banking revenue to grow by 15% in 2026, up from his prior forecast of 12%. He cited robust merger and acquisition advisory activity, a rebound in initial public offerings expected to total over 200 deals next year, and a more favorable regulatory environment following recent banking reforms. Poonawala also projected a modest 3% uptick in markets revenue, driven by stabilization in interest rates. Goldman has outperformed consensus EPS by approximately 15% over the last four quarters, supporting his decision to increase the firm’s valuation target.

For the fourth quarter of fiscal 2025, Goldman Sachs reported record trading revenue, driven by elevated volatility in equity derivatives and foreign exchange products. However, the firm recorded a $2.26 billion loss on its decision to exit the Apple Card partnership, contributing to a 3% year-over-year decline in total net revenues to $13.45 billion. Despite the revenue miss, GAAP earnings per share came in at $14.01, beating consensus estimates. During the quarter, Goldman returned $16.78 billion to shareholders through dividends and share repurchases, and raised its quarterly dividend by 12% to $4.50 per share.