Goldman Sachs and Morgan Stanley profits rise as 2025 deal boom boosts fees

Goldman Sachs reported Q4 net income of $4.6 billion and Morgan Stanley reported Q4 net income of $4.4 billion, with both firms citing strong 2025 dealmaking and higher equity trading fees.

Goldman Sachs and Morgan Stanley posted stronger fourth-quarter results as 2025’s dealmaking activity supported trading and advisory fees. Goldman reported Q4 net income of $4.6 billion, while Morgan Stanley’s net income rose to $4.4 billion. Both firms described 2025 as one of their better years for investment banking since the pandemic. Company statements highlighted ongoing client engagement and expectations for continued momentum into 2026. Key figures: - Goldman Sachs reported Q4 net income of $4.6 billion and $14.01 earnings per share, up about 12% from a year earlier. - Morgan Stanley reported Q4 net income of $4.4 billion, an 18% increase from the prior year, and said dealmaking revenue jumped 47%. - Goldman’s equity trading fees rose to about $4.3 billion in the fourth quarter, up roughly 25% year over year, and full-year trading revenue rose about 16% from 2024. - Goldman’s M&A advisory fees increased about 41% to $1.36 billion in the quarter, and its dealmaking fees rose about 25% to $2.57 billion for the period. - Morgan Stanley reported record full-year net revenues and net income, with equity trading fees up about 10% in Q4 and 28% for the full year versus 2024. - Shares of both firms fell in premarket trading on the day the results were reported. Summary: The banks’ results reflect higher advisory and trading fees tied to strong 2025 deal activity, and both Goldman Sachs and Morgan Stanley said they expect momentum to continue into 2026. Some rivals reported weaker activity late in the year, and timing of deals remains a factor for industry-wide fees. Undetermined at this time.