Goldman Sach tops profit estimates

Goldman Sachs' fourth-quarter profit beat Wall Street expectations on Thursday, driven by a surge in dealmaking and trading, as it expressed optimism for investment banking in the year ahead, reports Reuters.

A friendlier regulatory environment under US President Donald Trump, lower interest rates and excess cash have led companies to pursue more deals.

"The world is set up at the moment to be incredibly constructive in 2026 for M&A and capital markets," Goldman Sachs CEO David Solomon said on a call with analysts.

Goldman's fees from investment banking rose 25% to $2.58 billion from a year ago, but fell slightly short of the $2.66 billion that analysts expected.

Shares of the Wall Street giant, which have risen more than 50% in 2025, climbed over 3% in morning trade.

The bank's equity traders capitalized on volatility and a broader rally in the U.S. market as investors speculated on the Federal Reserve's interest-rate path and the prospects for AI companies.

Goldman's equity revenue rose to a record $4.31 billion, up from $3.45 billion a year earlier, while trading revenue for fixed income, currencies, and commodities climbed 12.5% to $3.11 billion.