After nearly three years of sputtering and false starts since the pandemic-era highs, dealmaking is finally looking like it’s back in gear on Wall Street.
Goldman Sachs, JPMorgan, and Citi all reported stronger third-quarter results as CEOs revived mergers and financing plans that had stalled while investors waited for markets to thaw. For the second quarter in a row, signs are mounting that the long-standing dealmaking drought, which has dragged on, affecting bankers’ pay and morale, is showing real signs of easing.
Goldman led the rebound with its third-highest quarterly net revenues ever: more than $15 billion, the bank said in its quarterly earnings release.
David Solomon, the firm’s CEO, told investors in a shareholder call on Tuesday that mergers were back — driving the firm’s advisory revenues 60% higher than the same period one year earlier, to a quarterly total of $1.4 billion. Overall investment banking fees totaled almost $2.7 billion, 42% higher than the third quarter of 2024. Equity underwriting revenues of $465 million were up 21% from the same time last year; debt underwriting was up 30%, to $788 million.
This year, the firm advised on the public offerings of Klarna and Figma, which went public last month. It also advised on the proposed $50 billion Anglo American and Teck Resources merger and Electronic Arts’ $55 billion take-private — blockbuster deals announced this quarter, whose fees are not yet included in the bank’s results.
“The setup remains constructive,” he said, praising a “more supportive regulatory environment” for spurring renewed activity.
He predicted “a very constructive M&A environment through the end of the year into 2026.” Denis Coleman, Goldman’s chief financial officer, said its dealmaking backlog was the highest it had been in three years across equity, debt, and advisory.
Jeremy Barnum, JPMorgan’s finance chief, warned in a separate earnings call that market prospects can change on a dime and Wall Street shouldn’t get too comfortable.
“As you well know,” he said, “that could change overnight.”
For example, if the government shutdown continues, it could stall capital markets and public issuance activity, potentially hurting ECM bankers who take companies public.
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Rival banks post strong quarters
The volume of deals worth $5 billion or more surged 64% from last year: 100 so far in 2025, up from 61 by this point in 2024, LSEG data show. The boost created benefits for rival banks like Citi and JPMorgan.
Goldman and JPMorgan shares slid more than 2% on Tuesday morning alongside a broader market sell-off, while Citigroup rallied roughly 2%.
JPMorgan’s investment banking fees rose 16%. Commercial and investment banking net revenues reached nearly $20 billion for the quarter, with CEO Jamie Dimon saying, “ECM and M&A activity picked up against a supportive backdrop.”
“The quarter showcased the strength of JPMorgan’s diversified business model, with all major segments contributing to growth,” said Kenneth Leon, director of equity research at CFRA Research. “We think this will lead the momentum for the rest of 2025 and into 2026.”
JPMorgan CFO Barnum told shareholders Tuesday that the rebound in lending is “mirroring the pickup in deal activity across our investment-banking businesses,” highlighting how client borrowing and transaction volumes are moving in tandem again. “We’re starting to see more M&A activity,” he added, citing “the busiest summer we’ve had in a long time,” and a rate environment conducive to dealmaking.
The bank said trading and client activity were contributing to a better dealmaking landscape, and executives cited higher compensation and “growth in front office employees” — a reversal from the firm’s position earlier this year, when Barnum said leadership had told managers to “resist hiring” and try to do more with less.
Citi’s investment bank generated more than $1.1 billion in fees, a 17% increase from the previous year.
The investment banking unit has experienced a surge of ambition driven by its new IB chief, Viswas Raghavan, a former JPMorgan dealmaker who joined Citi last year as executive vice chair and head of banking under CEO Jane Fraser. Corporate lending revenue was up nearly 40% as clients tapped its balance sheet again.
