Global investment banking revenue reached $61.4 billion in the first half of 2026, marking a 24% increase from the previous year, according to Dealogic data. This surge indicates the most bullish deal-making environment in years, largely fueled by mega equity offerings and multibillion-dollar transactions. JPMorgan remains the global leader in investment banking revenue, while Goldman Sachs leads in M&A advisory.
The second quarter of 2026 is expected to see U.S. investment banks achieve approximately $11.1 billion in fee income, representing a 27% year-on-year increase and the highest level since 2021. This growth is significantly driven by the $86 billion SpaceX IPO, which alone generated around $500 million in fees for the 23 underwriting banks, with Goldman Sachs and Morgan Stanley each earning about $100 million. Other major deals contributing to this robust quarter include chip designer Cerebras' $6.4 billion IPO and Google-parent Alphabet's $85 billion share sale.
Analysts from firms like Morningstar and Coalition Greenwich highlight that equities are the primary engine of growth across global markets. Jamie Vickers, head of equities at Coalition Greenwich, noted the significant revenues generated by the SpaceX IPO for both banking and cash-equities desks. Furthermore, market revenue for the largest global banks is projected to increase by at least 15% year-on-year in the second quarter, according to Angad Chhatwal, head of FICC at Coalition Greenwich, benefiting from continued volatility due to geopolitical tensions and AI disruption.
M&A fee income for the five major investment banks is also anticipated to grow by around 30% year-on-year, potentially exceeding $4 billion. Goldman Sachs, for instance, advised on over $1 trillion worth of announced mergers and acquisitions by mid-2026, setting a record pace. Despite the strong outlook, Morningstar analyst Sean Dunlop cautioned that second-quarter trading revenue, while robust, might show a slight slowdown compared to the first quarter, which was boosted by unusually high volatility from geopolitical events and related inflation and interest rate adjustments.
Major U.S. banks are providing optimistic forecasts for their second-quarter performance. JPMorgan Chase's CEO Jamie Dimon projected a 10% or more rise in investment banking fees. Citigroup expects trading revenue to increase by high-single to low-double digits and investment banking revenue to rise by a mid-teen percentage. Bank of America's Co-President Jim DeMare indicated they might exceed their initial 15% growth forecast in markets revenue, primarily due to strong equities business. Morgan Stanley's CEO Ted Pick also expressed positive sentiment about the capital markets business.
