After nearly three years of stagnation following the pandemic-era highs, Wall Street is witnessing a revival in dealmaking activity, as major financial institutions report stronger results for the third quarter. Investment giants Goldman Sachs, JPMorgan, and Citigroup are among those announcing renewed mergers and financing plans that had been sidelined while investors awaited more favorable market conditions.
Goldman Sachs has emerged as a leader in this revival, boasting its third-highest quarterly net revenues ever, exceeding $15 billion. In a call with shareholders, CEO David Solomon declared that mergers are making a comeback, which has propelled the firm’s advisory revenues up by 60% compared to the same quarter last year, totaling $1.4 billion. Overall, investment banking fees for Goldman reached nearly $2.7 billion, reflecting a 42% increase year-on-year. Notable contributions to these figures include equity underwriting revenues of $465 million, a 21% rise, and debt underwriting revenues climbing to $788 million, a 30% increase.
This year also saw Goldman advising on high-profile public offerings, such as those for Klarna and Figma, and on proposed blockbusters like the $50 billion merger between Anglo American and Teck Resources, as well as the $55 billion take-private deal involving Electronic Arts. Solomon pointed to a “more supportive regulatory environment” as a catalyst for the uptick in activity, predicting a “very constructive” M&A climate extending into 2026. Goldman’s Chief Financial Officer Denis Coleman noted that the dealmaking backlog is the highest it has been in three years, affecting equity, debt, and advisory services.
Despite these optimistic projections, Jeremy Barnum, JPMorgan’s CFO, cautioned against complacency. He remarked that market conditions can shift abruptly, highlighting the potential negative impacts of issues like a government shutdown, which could impede capital markets and public issuance activity.
In terms of competition, rival banks also experienced robust performances. The volume of deals exceeding $5 billion surged by 64% compared to last year, totaling 100 deals in 2025 compared to 61 at the same point in 2024, according to LSEG data. JPMorgan reported a 16% increase in investment banking fees for the quarter, contributing to nearly $20 billion in commercial and investment banking net revenues. CEO Jamie Dimon commented on the positive impact of this uptick, stating, “ECM and M&A activity picked up against a supportive backdrop,” while Kenneth Leon, a director of equity research at CFRA Research, praised JPMorgan’s diversified business model.
Notably, the bank revealed that rising lending activity is closely connected to increased deal activity, reflecting a significant rebound in both client borrowing and transaction volumes. Barnum also noted the resurgence of M&A activity, describing it as the “busiest summer we’ve had in a long time,” as the current rate environment supports dealmaking efforts.
Citigroup, on its part, recorded over $1.1 billion in investment banking fees, marking a 17% year-on-year increase. This growth is largely attributed to the ambitions of its new head of investment banking, Viswas Raghavan, who joined the firm last year. The bank also reported a near-40% increase in corporate lending revenue, as clients increasingly accessed its balance sheet.
While Wall Street celebrates this resurgence in dealmaking, the landscape remains dynamic and unpredictable, prompting industry leaders to stay vigilant in the face of potential volatility.
