Goldman Sachs reported its second-best quarter in company history on April 13, 2026, posting earnings per share of $17.55 and net revenues of $17.23 billion for the first quarter ended March 31. Net earnings came in at $5.63 billion, also the second highest on record for the firm. Return on equity was 19.8 percent, with return on tangible equity reaching 21.3 percent. The results came in well above analyst expectations and sent the stock higher in early trading before pulling back on broader market concerns tied to the Iran Hormuz situation.
The results were driven primarily by a surge in investment banking activity. Goldman's Global Banking and Markets segment posted record revenues of $12.7 billion for the quarter, with that segment's return on equity exceeding 22 percent. Advisory revenues were the standout, reaching $1.5 billion for the quarter, up 89 percent year over year on the back of higher completed merger and acquisition volumes. Goldman maintained its position at the top of global M&A league tables with a $150 billion lead in announced transaction volumes over the nearest competitor.
Equity underwriting came in at $535 million for the quarter, up 45 percent year over year. Debt underwriting contributed $811 million, up 8 percent, driven by increased investment grade issuance and a robust asset-backed securities market. The breadth of strength across banking lines reflects a broader recovery in deal-making that began in late 2025 and has accelerated through the first quarter of 2026, despite the geopolitical uncertainty introduced by the Iran conflict and the ongoing tariff policy environment.
Goldman CEO David Solomon addressed the macro backdrop on the earnings call, noting that while the Iran situation introduces uncertainty, the firm has not seen a material pullback in client engagement or deal pipeline. He cited pipeline visibility that extends into mid-year and said the firm expects advisory momentum to continue into Q2 barring a significant escalation in the Hormuz situation. Analysts on the call pressed on the potential impact of elevated oil prices and inflation on deal timing, and Solomon acknowledged that a prolonged conflict could slow certain sectors, particularly energy and logistics-adjacent transactions.
The wider Wall Street earnings season has so far confirmed the investment banking recovery thesis. JPMorgan reported net income of $16.5 billion for Q1 and Citigroup posted profits up 42 percent year over year. Morgan Stanley is scheduled to report its Q1 2026 results on April 15. Analysts have projected Morgan Stanley earnings of $2.95 per share on revenues of $19.23 billion, which would represent approximately 11.5 percent revenue growth year over year. The bank's wealth management and investment banking lines are both expected to show strength.
The back-to-back strong quarters across major Wall Street banks reinforce the view that the financial sector has fully recovered from the deal drought that began in 2022 and extended through much of 2024. The combination of moderating rate expectations, pent-up M&A activity, improved equity market conditions through early 2026, and a backlog of transactions that were delayed during the rate uncertainty period created the conditions Wall Street has been waiting for. Whether that momentum holds into the second half of 2026 will depend on how the Iran blockade resolves, what the Federal Reserve communicates at its next meeting, and whether the tariff environment settles into a pattern that corporate dealmakers can plan around.