Goldman Sachs Sees Q4 Boost from Dealmaking Surge and Apple Card Exit
Goldman Sachs delivered a stronger-than-expected fourth quarter, showing how its traditional Wall Street businesses continue to benefit from volatile markets and a revival in global dealmaking.
Higher trading revenues, a sharp rebound in investment banking fees, and a one-off gain linked to the exit from its Apple credit card partnership combined to lift profits year over year, even as the bank continues to step back from consumer finance.
- Goldman Sachs’ Q4 profit rose on stronger trading activity and a rebound in investment banking.
- A one-time gain from exiting the Apple card partnership added to earnings momentum.
- The bank reclaimed the top global M&A advisory spot as large deals returned.
Market volatility played directly into Goldman’s strengths. A rally in U.S. equities, combined with uncertainty around interest rates and growing enthusiasm for artificial intelligence-related stocks, kept client activity elevated across trading desks. At the same time, corporate confidence improved toward the end of the year, encouraging a return of large mergers and acquisitions after a slower period in 2024.
Trading desks thrive amid volatility and policy uncertainty
Goldman’s equities business stood out during the quarter, as traders capitalized on sharp price swings and heavy positioning by institutional investors. Expectations around the interest-rate path of the Federal Reserve and sustained flows into AI-linked names helped drive stronger volumes and wider opportunities for market-making.
Fixed income, currencies, and commodities trading also contributed meaningfully, supported by uneven macro data and shifting rate expectations across major economies. Together, the trading divisions highlighted how Goldman’s core franchise remains highly sensitive to periods of uncertainty, often performing best when markets are most active.
A notable boost to earnings came from the bank’s decision to unwind its Apple card exposure. Goldman reached an agreement to transfer the partnership to JPMorgan Chase, marking another step away from its consumer banking ambitions. The exit allowed the bank to release reserves that had been set aside to cover potential loan losses tied to the card portfolio, delivering a one-time uplift to quarterly results.
The move also reflects broader caution among lenders as policymakers under Donald Trump have floated proposals that could cap credit card interest rates, potentially squeezing margins across the industry.
Dealmaking rebound restores Goldman’s M&A leadership
Investment banking was another major source of strength. Lower interest rates, a more constructive regulatory tone, and large corporate cash balances encouraged companies to revisit strategic transactions. Goldman’s advisory fees rose sharply as it took part in several high-profile deals during the year.
Among the standout transactions were the leveraged buyout of Electronic Arts and Alphabet’s acquisition of cloud security firm Wiz. These large-scale deals helped Goldman reclaim its position as the world’s leading M&A adviser, with total advised volumes reaching nearly $1.5 trillion.
The broader backdrop for dealmaking has also improved significantly. Global merger volumes surged in 2025 as companies pursued growth, consolidation, and AI-driven expansion strategies. According to data from Dealogic, worldwide M&A activity jumped sharply from the prior year, raising expectations that the momentum could extend into 2026.
Overall, the quarter underscored Goldman Sachs’ renewed focus on its core investment banking and trading franchises. While the bank continues to streamline operations and reduce exposure to less profitable consumer businesses, its latest results suggest it remains well positioned to benefit from active markets and a sustained recovery in global dealmaking.
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