Goldman Sachs announced increased first-quarter earnings on Monday, with the major investment bank seeing substantial gains from merger activity and stock trading operations.
Market turbulence stemming from Middle East conflicts has created uncertainty as oil price increases fuel concerns about inflation and potential economic downturn.
The increased market instability has driven clients to reevaluate their investment portfolios and seek protection against potential losses, which typically benefits trading operations at major financial institutions.
“The geopolitical landscape remains very complex – so disciplined risk management must remain core to how we operate,” Goldman Sachs CEO David Solomon said in a statement.
The bank’s stock trading and financing division generated record revenues of $5.33 billion, marking a 27% increase, while income from bonds, currencies and commodities decreased 10% to $4.01 billion.
Earnings available to shareholders increased to $5.4 billion, equivalent to $17.55 per share, compared to $4.58 billion or $14.12 per share during the same period last year.
Industry leaders anticipate robust merger and acquisition activity this year despite ongoing Middle East uncertainty, as anticipated regulatory changes under President Donald Trump’s administration and artificial intelligence growth are expected to drive deal-making.
Worldwide merger volumes reached $1.38 trillion during the first quarter, based on Dealogic statistics. Jefferies analysts reported that global merger advisory fees increased 19% annually to $11.3 billion, with Goldman maintaining the largest market position.
The firm participated in major transactions during the quarter, including providing counsel to Unilever regarding the planned combination of its food division with McCormick to establish a $65 billion entity, and Equitable’s proposed merger with Corebridge to create a $22 billion insurance company.
Investment banking fee income climbed to $2.84 billion in the first quarter, representing a 48% increase from the previous year.
The financial giant’s stock price has gained more than 3% year-to-date, following a surge of over 53% in 2025.
Initial public offering activity has faced renewed challenges due to geopolitical tensions affecting investor appetite for equities, though certain companies, particularly in industrial and defense sectors, have continued with listing preparations.
Goldman has obtained a position as a lead underwriter for SpaceX’s anticipated IPO scheduled for June, according to Reuters sources. The Elon Musk-controlled company could potentially raise $75 billion at a $1.75 trillion valuation.
This offering is projected to trigger additional major public listings throughout the year, potentially including IPOs from OpenAI and Anthropic.
Goldman served as a joint book-running manager for PayPay’s $880 million U.S. public offering, which assigned the SoftBank-supported company a $10.7 billion valuation.
The bank’s asset and wealth management division saw revenues grow 10% to $4.08 billion. Goldman has emphasized this business segment to create more consistent income streams, decreasing dependence on the more unpredictable trading and investment banking revenues.
The company’s private credit fund within this division avoided industry-wide withdrawal pressures last week, with investors requesting to redeem slightly less than 5% of shares in the first quarter – redemptions that remained within established limits.
Concerns that artificial intelligence might impact software company profits and compromise debt servicing capabilities have disrupted the multi-trillion-dollar private credit sector, leading investors to seek liquidity through increased withdrawals.
Goldman finalized its purchase of exchange-traded fund provider Innovator Capital Management earlier this month, bringing its total ETF assets under management to $90 billion.
