New York, January 16, 2026, 11:14 EST — Regular session
- Goldman Sachs shares dip roughly 1% in late morning, underperforming peers
- Bank reported Q4 EPS of $14.01 and increased its quarterly dividend to $4.50
- Traders are zeroing in on whether dealmaking momentum will hold up through the Jan. 27-28 Fed meeting
Goldman Sachs shares dipped on Friday, giving back part of the gains from the day before despite solid trading revenue. The stock slipped 0.9% to $967 by late morning, even as JPMorgan and Morgan Stanley edged slightly higher.
The pullback is crucial as big banks push to assure investors that last year’s surge in deals and market activity will persist into 2026. Goldman, a key indicator for Wall Street trading and advisory work, faces a pivotal few weeks that will shape the outlook.
Timing plays a role too. With rates and volatility—key factors for trading and issuance—taking center stage again, the market is swift to dismiss any talk of a “one great quarter.”
Goldman reported $4.62 billion in fourth-quarter earnings on net revenues of $13.45 billion, translating to $14.01 per share (EPS). The bank boosted its quarterly dividend to $4.50 from $4.00, scheduled for March 30 to shareholders of record as of March 2, and bought back $3.0 billion of common stock during the quarter. Revenue dipped 3% year-over-year, weighed down by $2.26 billion in markdowns on the Apple Card loan portfolio and related contract costs, though a $2.48 billion release of loan-loss reserves helped offset some of that. Operating expenses jumped 18% to $9.72 billion. (SEC)
Investment banking fees climbed 25% to $2.58 billion on the trading floors. Equities revenue soared to a record $4.31 billion, while fixed income, currencies and commodities (FICC) trading pulled in $3.11 billion, Reuters reported. CEO David Solomon told analysts, “The world is set up … to be incredibly constructive in 2026 for M&A and capital markets.” Stephen Biggar, an analyst at Argus Research, called the dividend hike “a powerful testament” to management’s confidence in earnings power. (Reuters)
Other Wall Street leaders echoed that upbeat view on dealmaking. Morgan Stanley CFO Sharon Yeshaya noted an “accelerating pipeline in M&A and IPOs.” JPMorgan CFO Jeremy Barnum told analysts the bank’s pipeline is reflecting that positive outlook. Gabelli Funds portfolio manager Macrae Sykes highlighted GDP growth, deregulation, and the delayed impact of last year’s Fed cuts as key drivers. (Reuters)
U.S. stocks hovered close to record highs on Friday, showing a choppy trading session. The 10-year Treasury yield ticked up to around 4.19% as investors weighed early earnings reports alongside shifting expectations for interest rates, the Associated Press reported. (AP News)
That said, the upside isn’t guaranteed. Trading revenue can drop sharply if markets settle, and the M&A pipeline might shrink if financing dries up or boards grow cautious. Rising costs add pressure, leaving little margin for error if fees falter.
Investors are closely tracking when the consumer-business unwind will stop skewing the top line. They’re also keeping an eye on whether capital returns hold steady as Goldman ramps up its focus on core trading and advisory units.
The Federal Reserve’s policy meeting on Jan. 27-28 stands out as the next key event, with the potential to shift rate expectations and send waves through trading volumes and deal-making. (Federalreserve)
