Goldman CEO Bullish on M&A Despite Geopolitical Risks
Despite geopolitical uncertainty, David Solomon, Chief Executive Officer of Goldman Sachs, has stated he remains optimistic about the opportunity to scale business through areas like mergers and acquisitions (M&A). In a letter to shareholders dated 13 April 2026, David highlighted several areas where the financial sector is experiencing growth, citing continued client interest in dealmaking despite industry concerns over conflict in the Middle East.
On 13 April 2026, the company reported strong first-quarter earnings. Goldman Sachs reported net revenues of US$17.23bn and net earnings of US$5.63bn in its first quarter according to the company's Q1 2026 earnings report.
In a meeting with the Trump administration and several Wall Street leaders on 10 April 2026, David states he expects "significant activity" in company mergers and acquisitions.
"Unless the overall environment got much, much worse, I don't see that slowing, based on what we see at the moment," he says.
M&A activity continues upward
David says Goldman Sachs expects to see monetary easing, fiscal stimulus in developed economies, capital investment in AI technologies and a more balanced regulatory regime in the US to drive M&A activity this year.
"While it is difficult to predict the broader economic effects of the military action by the US and Israel against Iran, we still see the potential for a more constructive operating environment," David states in the letter.
The faster deal closing under the Trump administration has eased previous worries following a period of heightened investor scrutiny under the Biden administration. David says that CEOs and boards are taking a much more front-footed approach to strategic transactions as a result.
"We expect this upswing to continue, though a protracted war or another exogenous event could, of course, change the current sentiment," he adds.
Several dealmakers who gathered at Tulane University's Corporate Law Institute conference in New Orleans on 19–20 March 2026 mirrored this view.
Stephan Feldgoise, Co-Head of Global M&A at Goldman Sachs, says that despite geopolitical tensions and oil price spikes, "M&A is running at an all-time high. It is phenomenal."
Private credit positioning
Within the Goldman Sachs Q1 2026 earnings report, David also expressed confidence in the company's private credit business amid growing investor anxiety.
"We feel we're very well positioned," David says, pointing to an inflow in the quarter in private credit.
He went on to describe the concerns over private credit as unsurprising given that it had been a "very long credit cycle" without an economic recession.
The company also reported a rise in revenues for equity trading. Since the US and Israel attacked Iran on 28 February 2026, the surge in oil prices has dominated financial markets, often dictating trading dynamics in equities and other assets.
David reiterates that CEOs have viewed the current period as a window of opportunity to conduct deals under the Trump administration, which has taken a less sceptical view of industry consolidation compared to the Biden-era Government.
"As I talk to CEOs, of course, they're watching what's going on geopolitically, but that's also balanced by the fact they see an opportunity during this period of time to drive scale and scale creation in businesses," David says. "And that candidly trumps the geopolitical risk."
He also discusses the geopolitics of the US–China relationship, stating the two economies needed a long-term reset to ease tensions.
"Given how entwined they are, it is important that the US and China reach a new modus vivendi, not just for the next 12 months, but rather for the next 10 to 20 years," David adds. "We believe there is a roadmap for more meaningful dialogue. That said, it remains to be seen whether that dialogue will lead to a significant agreement."