- Goldman Sachs and Morgan Stanley posted strong Q4 2025 results as a rebound in dealmaking and equities trading lifted investment-banking fees about 25% and 47%.
- JPMorgan’s investment-banking fees fell roughly 5% to $2.35bn despite strength in trading and net interest income.
- Morgan Stanley’s wealth business topped $9tn in client assets, while Goldman set a 2030 goal of $750bn in alternatives under supervision.
- Deal pipelines are improving amid a friendlier backdrop, but timing, inflation and regulatory/political uncertainty remain key risks.
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Financial Performance Highlights
Goldman Sachs posted a 12% increase in net income in Q4 2025, reaching approximately $4.6 billion; Morgan Stanley reported an 18% profit rise to $4.4 billion, both with strong dealmaking, while JPMorgan saw net revenue up ~7% YoY, though its investment banking fees fell ~5% to $2.35 billion.
Investment Banking & Equities Trading
Goldman’s investment banking fees grew ~25%, benefited by rising M&A and IPO activity, while Morgan Stanley saw ~47% gains, with advisory and underwriting activities accelerating significantly. By contrast, JPMorgan’s IB division underperformed: advisory fees declined, debt underwriting fell 2%, and total IB fees fell 5% YoY despite the firm projecting low-single-digit growth.
Asset / Wealth Management Trajectories
Morgan Stanley’s client assets eclipsed $9 trillion in Q4, nearing its $10 trillion target, buoyed by wealth management. Goldman set a medium-term objective of $750 billion in alternatives under supervision by 2030. These moves signal a continued strategic shift toward fee-based revenues and diversification from volatile core banking activities.
Market Backdrop & Strategic Drivers
Executives from Goldman and Morgan highlighted deregulatory tailwinds—especially under the Trump administration—loosening US regulatory constraints and catalyzing renewed boardroom activity in transformational M&A. Equities markets performed robustly, and trading across the big banks produced record revenues—$60 billion industry-wide for 2025.
Risks, Misalignments & Open Questions
- Timing mismatches: JPMorgan cited delayed deals pushing into 2026, which may mask true underlying momentum or create volatility.
- Regulatory / political uncertainty: Concern persists over Fed independence, proposed rate caps (e.g. on credit cards), and how regulatory shifts will be operationalized.
- Macro headwinds: Inflation remains sticky; global economic uncertainty and potential geopolitical risks may dampen deal pipelines.
- Execution challenges: Maintaining momentum in investment banking with disciplined risk management; growth in alternatives requires scale and cost control.
Supporting Notes
- Goldman Sachs Q4 2025 net income was roughly $4.6 billion, up 12% YoY.
- Morgan Stanley’s Q4 2025 profits rose by 18% YoY to about $4.4 billion.
- Goldman and Morgan Stanley investment banking fees increased by ~25% and ~47% respectively, driven by M&A, advisory, and underwriting gains.
- Equities trading revenue for Goldman in Q4 hit a record $4.3 billion; Morgan Stanley achieved ~$3.7 billion.
- Morgan Stanley client assets exceeded $9 trillion; Goldman set target of $750 billion alternatives under supervision by 2030.
- JPMorgan investment banking fees fell ~5% YoY to $2.35 billion; debt underwriting revenues declined ~2%.
- JPMorgan saw trading revenues rise strongly—equity markets up ~40%, fixed income ~7% YoY—and net interest income rose ~7% YoY to $25 billion.
- Open questions include timing of delayed deals into 2026, regulatory outlook under Trump administration, inflation trajectory, and competition in alternative assets build-out.