Goldman Sachs, Morgan Stanley Report Strong Q4 Profits

Goldman Sachs and Morgan Stanley both reported stronger-than-expected fourth-quarter profits on Thursday, fueled by a resurgence in investment banking activity and robust trading gains amid a booming mergers and acquisitions market.

Goldman Sachs posted a quarterly profit of $4.62 billion, a 12 percent increase from the previous year, with earnings per share reaching $14.01, surpassing analyst estimates of $11.70. Revenue totaled $13.45 billion, down 3 percent year-over-year and below projections of $14.52 billion, partly due to a one-time reduction tied to the bank's agreement to transfer its Apple credit card partnership to JPMorgan Chase. That transaction released $2.48 billion from loan loss reserves and added 46 cents per share to earnings. For the full year of 2025, Goldman achieved record revenue of $58.3 billion and net earnings of $17.2 billion, with earnings per share at $51.32.

The bank's investment banking fees climbed 25 percent to $2.58 billion in the fourth quarter, driven by advisory services and debt underwriting. Goldman advised on $1.48 trillion in global mergers and acquisitions volume, securing the top position worldwide. Equity trading revenue hit a record...