Goldman Q4 Profit Beats on Record Equity Trading and Dealmaking

Goldman Sachs closed the fourth quarter with profits that beat Wall Street expectations, driven by record equity trading and a jump in dealmaking activity. The investment bank reported an EPS of $14.01 and said investment banking fees rose roughly 25% year-on-year to $2.58 billion, while wealth-management businesses delivered record fee revenue. The firm also raised its quarterly dividend.

The headline performance masked mixed underlying dynamics. Net revenues were lifted by unusually strong equities flows and a rebound in mergers and acquisitions work, but one-off accounting related to the Apple Card transition reduced revenue even as a reserve release helped boost EPS. Operating expenses increased, with compensation cited among the drivers, and headcount rose modestly, about 2% over 2025.

For people who work at Goldman, the quarter has predictable and practical implications. Record equity trading revenues and a surge in deal fees typically translate into larger bonus pools on trading and investment banking desks, and the firm’s disclosure of higher compensation suggests that more of the revenue gains flowed into pay. At the same time, the modest 2% headcount increase points to selective hiring rather than broad recruiting; teams that handled the busiest deal flow are likely to see reinforcements, while other areas may remain lean.

The rise in wealth-management fee revenue signals continued strength in the consumer- and client-facing businesses, which could mean growth-focused hiring and expanded workloads for advisory, platform, and client service teams. Management expressed optimism about M&A prospects for 2026, indicating that deal activity will be an important revenue driver going forward. If dealmaking materializes at the scale executives anticipate, investment-banking hours and transaction-related demands will likely intensify.

The Apple Card accounting items serve as a reminder to separate operational performance from one-off accounting effects when judging bonus pools and performance metrics. Reserve releases can inflate EPS without reflecting sustainable revenue growth, which matters for employees whose pay is tied to recurring business results rather than transient accounting gains.

What comes next for workers is a close watch on how the firm allocates the quarter’s gains between dividends, compensation, and reinvestment. Employees should expect continued pressure on high-performing desks to sustain volume, selective hiring in growth pockets such as wealth management and M&A, and company communications in coming weeks laying out compensation decisions and strategic priorities for 2026.