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Wall Street Dealmaking Rebounds as Big Banks Post Strong Q4 and Signal a Busy 2026

Executives credit a friendlier deal climate for swelling pipelines.

Overview

  • Dealogic reports global investment-banking revenue topped $100 billion in 2025 as M&A and IPO activity revived and mega-deals reemerged.
  • Goldman Sachs said investment-banking fees rose 25% in the fourth quarter and Morgan Stanley reported a 47% jump in IB revenue, with both posting double-digit profit gains and larger backlogs.
  • Results were uneven across firms, with JPMorgan’s division described as lackluster as some deals slipped into 2026, Bank of America posting a 1% fee increase, and Citigroup recording record M&A advisory revenue for 2025.
  • Bank leaders point to easier U.S. antitrust conditions and stronger markets as tailwinds but caution that macro, policy and geopolitical shocks could derail momentum.
  • Banks highlight a crowded 2026 listing slate, with companies such as OpenAI, SpaceX and Cerebras reportedly exploring IPOs as sponsors also prepare more exits.