Jan 15, 2026 - Business
Wall Street investment banks are on a tear
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Lindsey Bailey/Axios
Wall Street's biggest players are riding high on a wave of investment banking fees, trading revenue and AI-linked debt deals.
Why it matters: The steady deal flow reflects a vibrant pulse for an industry that greases the wheels of the U.S. economy.
The big picture: Goldman Sachs and Morgan Stanley on Thursday delivered record-breaking earnings reports in multiple ways.
- Goldman posted record net revenue of $41.5 billion in 2025, powered by a 21% boost in investment banking fees from advising on mergers and bringing bond and loan deals to market.
- It took in $4.31 billion in revenue from its equities business in Q4 — an all-time high for Wall Street, according to Bloomberg. That's a 25% jump from a year earlier, fueled by volatility-driven derivatives activity and a surge in lending to hedge funds.
- Morgan Stanley reported record annual revenue of $70.6 billion and net income of $16.9 billion, fueled in part by an all-time quarterly high in equity underwriting revenue — driven largely by IPO work.
What they're saying: Goldman CEO David Solomon said the company has its highest deal backlog in four years.
- "We are especially well-positioned to help sponsors deploy the $1 trillion of dry powder they hold and monetize the roughly $4 trillion of value across their portfolio companies," he said on an earnings call.
The intrigue: The AI boom is triggering lucrative opportunities for the big banks.
- "The need for capital markets and structuring expertise in terms of what's going on within the AI ecosystem is clearly there," Morgan Stanley CFO Sharon Yeshaya said Thursday on an earnings call.
- Solomon noted "tremendous public and private capital fueling growth in AI."
The impact: Goldman shares closed up 4.6% Thursday, while Morgan Stanley gained 5.8%.
