Wall Street bankers shift focus to busy 2026 after cashing in on big deals

• Global investment banking revenues crossed $100 billion in 2025, marking a recovery from years of high interest rates and market volatility
• Major 2025 deals included Electronic Arts' proposed $55 billion take-private (largest LBO if completed) and Union Pacific's $85 billion bid for Norfolk Southern
• JPMorgan earned the highest industry-wide fees in 2025 according to Dealogic, while Wells Fargo climbed to 8th in M&A rankings from 12th, advancing its goal to become a top-five U.S. investment bank

Market Summary: Wall Street Banks Eye Strong 2026 After Record 2025

Key Highlights

Wall Street investment banks reported robust 2025 performance, with global investment banking revenues surpassing $100 billion—a significant milestone following years of high interest rates and market volatility. Goldman Sachs posted a 25% jump in investment banking fees, while Morgan Stanley saw a 47% surge in investment banking revenue.

Company Performance

JPMorgan Chase led the industry in total fees for 2025, though quarterly results disappointed due to deals pushed to 2026. Bank of America reported modest 1% growth in investment banking fees. Wells Fargo made notable progress, climbing to 8th from 12th in M&A rankings and advising on two of 2025's largest deals as part of its strategy to become a top-five U.S. investment bank.

Deal Activity

Mega-deals dominated 2025, including Electronic Arts' proposed $55 billion take-private transaction—potentially the largest leveraged buyout in history—and Union Pacific's $85 billion bid for Norfolk Southern. The Warner Bros Discovery sale process continues with Netflix and Paramount-Skydance competing.

2026 Outlook

Banking executives report pipeline activity at five-year highs, with particular strength expected in healthcare and industrial sectors. High-profile IPO candidates include OpenAI, SpaceX, and Cerebras. A more permissive U.S. antitrust environment and stronger equity markets are expected to drive M&A activity.

Private equity and venture capital firms are anticipated to increase exits after years of waiting for improved valuations. Morgan Stanley CFO Sharon Yeshaya noted sponsors now have "dual track alternatives" between M&A transactions and IPOs, supporting continued deal flow momentum into 2026.