Goldman Sachs delivered a standout second quarter, with investment-banking fees reaching a record $3.40 billion. Up 55% year-on-year and 20% quarter-on-quarter. This came inside a firmwide record print of $20.34 billion in net revenues, diluted EPS of $20.98, and ROE of 23.5%.
Advisory (M&A), equity underwriting, and a record debt-underwriting business all fired strongly, while the fee backlog grew.
The Numbers
- Total IB fees: $3.40 billion (+55% YoY, +20% QoQ).
- Advisory (M&A): $1.38 billion (+17% YoY) — the largest of the three lines.
- Debt underwriting: $1.03 billion (+75% YoY) — a record.
- Equity underwriting: $985 million (+130% YoY) — the fastest-growing line.
Wider context: Global Banking & Markets net revenues hit a record $15.52 billion (+53% YoY) at a 27.5% ROE
The Concrete Driver: SpaceX IPO
The quarter’s marquee mandate was Goldman’s role as lead-left bookrunner on the SpaceX IPO, the largest in history, raising roughly $86 billion at a ~$1.77 trillion valuation.
Fees (estimates only, as Goldman does not disclose per-deal figures): Underwriters shared about $500 million total, with Goldman and Morgan Stanley each taking roughly $100 million (some outlets estimated the pool higher).
SpaceX boosted the equity-underwriting line (up 130% YoY), but that segment remained the smallest of the three IB businesses.
Why the Rest of the Business Was Strong
- Equity underwriting (+130%): Significantly higher revenues from secondary offerings and IPOs amid a reopened issuance window.
- Debt underwriting (+75%, record): Higher revenues from leveraged finance and asset-backed activity.
- Advisory (+17%): Increase in industry-wide completed M&A volumes.
Goldman ranked #1 in announced and completed M&A, equity and equity-related offerings, and leveraged lending.
Other Marquee Mandates
Goldman has advised on more than $1 trillion of M&A in the first half of 2026, a record pace, securing the #1 global M&A adviser ranking.
Illustrative deals (advisory fees recognized on completion):
- Advised Unilever on its ~$44.8 billion combination of its foods business with McCormick.
- Involved in the ~$33.4 billion acquisition of AES Corp. by BlackRock’s Global Infrastructure Partners and EQT.
- Advised TopBuild on its merger with QXO.
Forward Signal
The IB fee backlog rose quarter-on-quarter, led by advisory. Management cited strong pipelines and expects continued activity. Goldman is positioning as the underwriter of choice for upcoming mega-cap tech IPOs (e.g., OpenAI and Anthropic).
CEO David Solomon said: “Our record performance this quarter reflects the strength of our global franchise, the depth of our relationships, and our ability to harness the power of One Goldman Sachs. Momentum has accelerated throughout our businesses. Clients are turning to us to lead their most strategic and consequential transactions… given what we see in our pipelines, we expect this flywheel of activity to continue.”
Why It Matters
Investment banking offers the cleanest read on the deal cycle. Goldman, the most geared major bank to IB, posted records across a landmark IPO, record debt underwriting, rising advisory fees, and a growing backlog. This confirms the 2026 deal boom is real and still building.
Author: Tejas Bansal
See Also:
Can SpaceX Stock Sustain Its $2.5 Trillion Valuation in 2026? | Disruption Banking
