The six largest U.S. banks collectively reported $55 billion in second-quarter profit, surpassing analyst expectations as robust trading activity and a surge in artificial intelligence-related financing drove earnings to new heights. Even excluding one-time gains at JPMorgan Chase, the group generated approximately $50.4 billion in profit, underscoring the strength of Wall Street's core businesses.
Trading Desks Deliver Record Revenue
Geopolitical tensions and volatile energy markets kept trading desks busy, with equities, fixed income, currencies, and commodities all seeing elevated volumes. Goldman Sachs led with a record $7.42 billion in equities trading revenue, up 72% year over year, while fixed-income trading added $4.59 billion, a 32% increase. JPMorgan Chase reported $6 billion in equities revenue, an 86% jump, and $6.1 billion in fixed income, bringing total markets revenue to $12.1 billion.
Morgan Stanley also posted record equity trading revenue of $6.3 billion, up 69%, alongside $2.5 billion from fixed income. Bank of America saw equities trading revenue rise 70% to $3.6 billion, and Citigroup's equities business climbed 45% to a record $2.3 billion. Wells Fargo, though smaller in trading, reported a 24% increase in markets revenue to $2.21 billion.
AI Fuels Investment Banking Recovery
Investment banking fees surged across all six banks as mergers and acquisitions, equity offerings, and debt issuance accelerated. Goldman Sachs generated $3.4 billion in fees, up 55%, while JPMorgan Chase reported $3.3 billion, its strongest quarter since 2021. Morgan Stanley posted the fastest growth, with investment banking revenue jumping 58% to $2.44 billion.
According to Dealogic, global investment banking revenue rose 24% in the first half of 2026 to $61.4 billion, driven by mega mergers and a vibrant IPO market. The quarter's standout deal was SpaceX's $86 billion initial public offering in June, the largest in U.S. history, which generated roughly $500 million in fees for participating banks. Goldman Sachs served as lead-left underwriter, with JPMorgan, Bank of America, Citigroup, and Wells Fargo also involved.
AI Spending Creates a New Financing Cycle
Executives across Wall Street emphasized that artificial intelligence is driving a broad financing cycle beyond tech companies. Banks are funding data centers, underwriting debt and equity, advising on acquisitions, and facilitating capital flows for AI infrastructure. Wells Fargo advised on NextEra Energy's $67 billion acquisition of Dominion Energy and Apollo's $35 billion financing for AI company Anthropic.
Goldman Sachs CEO David Solomon described the investment wave as creating a ripple effect across the economy, while CFO Denis Coleman noted, "We are in the middle of an AI capex super cycle where there are demands on financing in every single financing instrument, in every region of the world and across every single industry." Wells Fargo analyst Mike Mayo identified Goldman Sachs, JPMorgan Chase, and Morgan Stanley as the biggest beneficiaries, raising price targets on Goldman and JPMorgan after the earnings reports.
Consumer Lending Remains Resilient
Despite persistent inflation, consumer banking continued to support earnings. Banks reported relatively low delinquency rates, and expectations that interest rates will stay elevated longer supported lending profitability. Bank of America added one million new credit card accounts during the quarter, reflecting steady consumer demand.
For more on market-moving earnings, see our coverage of Microsoft Stock Slips 1.5% as Analysts Trim Targets Ahead of Q4 Earnings and Alphabet Stock Dips 2% on Gemini 3.5 Pro Delay, Yet Analysts Remain Bullish Ahead of Earnings. For broader market context, see Dow Futures Rise 130 Points as Markets Weigh Earnings, Chip Weakness, and Key Data.
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