Goldman Sachs delivered impressive first-quarter results with profit applicable to common shareholders jumping to $5.4 billion, or $17.55 per share, compared with $4.58 billion, or $14.12 per share, a year earlier. According to reports from The Economic Times, this represents a 20% increase in profitability for the Wall Street investment bank. The strong performance was driven by robust activity in dealmaking and equities trading segments, which benefited significantly from current market conditions.
The bank's revenue from equity trading intermediation and financing rose 27% to a record $5.33 billion, while fixed income, currencies and commodities revenue fell 10% to $4.01 billion. As reported by The Economic Times, this performance reflects the heightened volatility across asset classes that has pushed up client demand for portfolio reassessment and downside risk hedging. Global M&A volumes hit $1.38 trillion in the first quarter, with analysts noting that global M&A proxy fees rose 19% year-over-year to $11.3 billion, with Goldman leading market share. The HSR filings reached 203 in March 2026, indicating continued robust dealmaking activity despite challenging market conditions.
Goldman Sachs worked on several significant deals during the quarter, including advising Unilever on the planned merger of its food business with McCormick to create a $65 billion company, and Equitable's proposed tie-up with Corebridge to form a $22 billion insurer. According to The Economic Times, the investment bank's fees from investment banking rose to $2.84 billion in the first quarter, a 48% jump from a year ago. The heightened geopolitical landscape has created opportunities for disciplined risk management and strategic dealmaking, with PwC's global M&A analysis documenting 111 transactions valued above $5 billion in 2025, up 76% from 63 such deals in 2024.
Goldman's revenue from assets and wealth management rose 10% to $4.08 billion, as reported by The Economic Times. The bank has prioritized this business to generate steadier income and reduce reliance on more volatile trading and investment banking revenues. Additionally, Goldman has secured a spot as one of the lead banks managing SpaceX's blockbuster IPO expected in June, which could raise $75 billion at a valuation of $1.75 trillion. The firm also participated in PayPal's $880 million U.S. IPO, which valued the SoftBank-backed firm at $10.7 billion.
Shares of Goldman Sachs have risen over 3% so far this year, following a more than 53% jump in 2025. According to The Economic Times, the investment bank completed its acquisition of active exchange-traded fund provider Innovator Capital Management earlier this month, lifting its total ETF assets under supervision to $90 billion. Despite geopolitical tensions and market volatility, the firm's diversified business model and strong dealmaking capabilities have positioned it well for continued growth in the current market environment. The PCE price index rose 2.6% for the full year 2025, matching 2024's rate, while the core PCE excluding food and energy came in at 2.8%, creating conditions that historically suppress deal financing but have not yet significantly impacted market activity.
