GS
The deal desk is back in business
Goldman Sachs just reminded Wall Street it still knows how to make money when the capital-markets lights are on. In Q2 FY2026, the bank’s Global Banking & Markets engine kept humming, with equity underwriting revenue jumping 130% year over year and private credit origination hitting $31 billion. That’s the kind of backdrop that makes bankers start talking a little louder in open-plan offices.
But here’s the catch: the cost base is getting beefier
Not everything is pure champagne and confetti. Goldman said compensation and benefits are expected to rise 22% for FY2026, which is a fancy way of saying the people making the money will be getting a bigger slice of it. That can be fine if revenue keeps outrunning expenses — but it’s also the part of the story investors keep an eye on when the market gets picky.
Shareholder return mode, activated
Goldman also bought back $4 billion of stock and raised its dividend, which is classic “we’re feeling pretty good about the balance sheet” behavior. For investors, that usually signals confidence that the bank sees enough earnings power to keep rewarding shareholders without breaking a sweat.
Why you should care
If you own GS, this is the kind of report that says the M&A and IPO windows are not dead, just selectively social. Strong underwriting and private-credit demand help the bull case, while the expense outlook is the little gremlin sitting on the other shoulder. Big picture: Goldman looks like it’s benefiting from a healthier deal environment — and it’s not shy about sending cash back to you at the same time.