Goldman Sachs predicts blockbuster 2026 for M&A mega-deals

• Goldman Sachs and five other major US lenders generated combined revenue of $593 billion in 2025 (up 6%) with $157 billion in profits (up 8%), setting the stage for substantial banker bonuses.
• Goldman's deal pipeline is at its highest level in four years, having advised on $1.48 trillion in M&A volume including major deals like the $56.5 billion Electronic Arts LBO and Alphabet's $32 billion Wiz acquisition.
• Solomon criticized the Biden administration's regulatory approach to mega-mergers, suggesting CEOs now see 'a window of a handful of years' for transformative deals under more favorable conditions.

Goldman Sachs Predicts Blockbuster 2026 for M&A Mega-Deals

Goldman Sachs is forecasting a banner year for merger and acquisition activity in 2026, following strong 2025 performance across major Wall Street banks. Goldman reported record investment banking fees of $9.3 billion for 2025, up 21% from $7.7 billion in 2024.

Key Financial Performance:

The six major U.S. banks—Goldman Sachs, Morgan Stanley, Citi, Wells Fargo, JPMorgan, and Bank of America—collectively generated $593 billion in revenue (up 6%) and $157 billion in profits (up 8%) in 2025. Morgan Stanley saw investment banking revenue surge to $7.6 billion from $6.1 billion year-over-year. Global M&A volumes reached $5.1 trillion in 2025, a 42% increase from 2024.

Major Deals:

Goldman advised on 2025's largest transactions, including the $56.5 billion leveraged buyout of Electronic Arts and Alphabet's $32 billion acquisition of Wiz. The firm secured the top position for global M&A, advising on $1.48 trillion in deal volume and earning $4.6 billion in fees.

Market Outlook:

CEO David Solomon cited a "constructive environment" for M&A and capital markets, attributing improved conditions to regulatory changes under the Trump administration, Federal Reserve rate cuts, and strong corporate cash positions. He criticized the previous administration's "overzealous" regulatory approach. Goldman's deal pipeline has reached its highest level in four years.

Sector Focus:

Morgan Stanley expects increased activity in healthcare and industrial sectors. However, CEO Ted Pick cautioned about economic complexity and geopolitical risks that could disrupt forecasts. The optimistic outlook is expected to drive substantial banker bonuses across Wall Street firms.