Goldman’s $4.3B Record: How Traders Saved the Year for David Solomon
Goldman Sachs Group Inc. obliterated Wall Street expectations in the final quarter of 2025, posting an all-time industry record of $4.31 billion in equities-trading revenue. This figure, which beat analyst estimates by nearly $700 million, underscores the success of CEO David Solomon’s strategy to refocus the firm on its core trading and investment banking powerhouses after exiting consumer banking. The bank also achieved a fourth-quarter record of $2.58 billion in investment-banking fees. While full-year net revenue reached $58.3 billion the second-best in company history it would have set a new all-time record had it not been for the financial impact of selling its Apple Card portfolio to JPMorgan Chase.
Meanwhile, rival Morgan Stanley reported its own blowout results, led by a massive 93% surge in debt-underwriting revenue the largest jump on Wall Street. The firm is aggressively expanding its asset and wealth management divisions through acquisitions like Innovator Capital, raising its medium-term pretax margin targets to 30%. Despite the stellar revenue numbers, Goldman shares dipped 2.3% in early trading, likely driven by a 13% rise in compensation expenses. Both banks, however, have cemented their dominance, with Goldman maximizing volatility in trading and Morgan Stanley capitalizing on the resurgence in debt issuance.