Dealmaking activity accelerated and market volatility propelled the equities business to a record high.
Total profit for the bank reached US$6.63 billion, or US$20.98 per share, for the three-month period ending June 30.
Goldman Sachs reported higher profits for the second quarter as dealmaking gained momentum and market volatility, fueled by the conflict in the Middle East, drove the equities business to record levels.
Inflationary risks, high oil prices, and uncertainty regarding the trajectory of US interest rates kept investors cautious, leading to significant portfolio adjustments and increased revenue for the equities trading desk.
The highly anticipated SpaceX IPO toward the end of the quarter provided investors with access to a company they had long sought, which analysts noted likely contributed to higher trading volumes. Goldman served as one of the lead underwriters for the offering.
The equities division generated US$7.42 billion in revenue, a 72 per cent increase compared to the previous year. Revenue from fixed income, currency, and commodities also climbed 32 per cent to US$4.59 billion.
“Momentum has accelerated throughout our businesses. Clients are turning to us to lead their most strategic and consequential transactions, which are often the genesis of activity across the franchise,” CEO David Solomon said in a statement.
Total profit for the bank was US$6.63 billion, or US$20.98 per share, for the three months ended June 30. This compares to US$3.72 billion, or US$10.91 per share, during the same period a year ago.
The strong financial performance may provide additional support for Goldman shares, which have outperformed the S&P 500 index this year, though some have raised questions regarding the stock’s future growth potential.
A surge in “mega-deals” valued at over US$10 billion pushed global M&A volumes to record highs during the first half of 2026, benefiting investment banks like Goldman that collect fees for advising on such transactions.
Goldman’s investment banking fees climbed 55 per cent to US$3.40 billion for the quarter, bolstered by an increase in stock and debt sales as well as a more robust advisory business.
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Corporate dealmaking remained resilient despite Middle East instability, supported in part by companies looking to expand and bolster their AI-related operations.
In May, Goldman president John Waldron noted that M&A volumes were on track to finish the year near the record levels observed in 2021.
Goldman provided advisory services on successfully resisted the industry-wide downturn.
Private credit firms have faced pressure from shareholders seeking to redeem their investments due to fears that AI could disrupt the business models of software companies held in their portfolios.
GS Credit, however, reported earlier this month that second-quarter repurchase requests remained below its 5 per cent cap.
