Goldman Sachs CFO Expresses Optimism for Continuing M&A Surge into 2026

Goldman Sachs Chief Financial Officer Denis Coleman expressed strong optimism about the continuation of the current surge in mergers and acquisitions (M&A) into 2026. Speaking at an investor conference on December 9, 2025, Coleman highlighted that 2025 is on track to become the second-largest year ever for announced deals, driven by a resilient U.S. economy, lower financing costs, and increased corporate confidence.

"Our outlook and visibility on M&A is ... very encouraging for aggregate overall levels of activity heading into 2026," Coleman stated. He noted that as of late November, 63 megadeals worth $10 billion or more had been announced, setting a new annual record.

Goldman Sachs has been a significant beneficiary of this M&A boom. The firm earned record advisory fees, including $110 million for its role in Electronic Arts' $55 billion take-private deal. Additionally, Goldman Sachs' stock has surged nearly 54% so far this year, outperforming both the banking index and the broader market.

The resurgence in initial public offerings (IPOs) and a 40% industry-wide increase in deals led by financial sponsors signal improving market conditions. Morgan Stanley's co-head of investment banking, Mo Assomull, also anticipates a robust increase in M&A and IPOs in the coming year, particularly in sectors like technology, healthcare, industrials, and financials.

Despite the aggressive deal-making environment, Coleman emphasized that Goldman maintains a high bar for "transformative acquisitions." The firm recently acquired Innovator Capital Management for $2 billion and entered into a partnership with Industry Ventures, further cementing its leading position in M&A advisory and acquisition financing.

The favorable macroeconomic environment, characterized by stabilized interest rates and clearer regulatory frameworks, has reduced execution risk for cross-border and mega-deals. Expectations for more supportive policies under the current U.S. administration, especially regarding antitrust review timelines and cross-border approvals, are raising management confidence to transact larger, strategic deals.

While the outlook is positive, potential risks include geopolitical tensions, trade policies, and market volatility that could impact deal-making activities. For instance, earlier in 2025, concerns over tariff policies led Oppenheimer to downgrade Goldman Sachs, citing uncertainty that could stall M&A activity.

The surge in M&A activity reflects corporate confidence and economic resilience, potentially leading to job creation and economic growth. However, it also raises considerations about market consolidation, competition, and the impact on consumers and employees.

As the M&A landscape continues to evolve, Goldman Sachs' strategic positioning and disciplined approach to transformative acquisitions will be crucial in navigating the opportunities and challenges that lie ahead.