Ahead of 2Q26 EPS, a reasonably healthy operating backdrop, and fairly attractive entry point

Research evidence excerpt

Ahead of 2Q26 EPS, a reasonably healthy operating backdrop, and fairly attractive entry point

Equity Research

6 July 2026 | 2:12AM EDT

AMERICAS INVESTMENT BANKS

Independent investment bank (IBank) stocks rose ~6% somewhat disappointing comp leverage so far this cycle James Yaro

+1(212)902-1913 |

on average in 2Q26,1 driven entirely by multiple rerating, can continue or accelerate. 2Q26 announced M&A james.e.yaro@gs.com

Goldman Sachs & Co. LLC

although underperformed the S&P 500 by 9pp. In our volumes were up 65% YoY, driven by strength in

Divyam Harlalka

view, the variety of procyclical and countercyclical macro large-cap/strategic M&A (up 202%/89% YoY), vs. +1(332)245-7818 | divyam.harlalka@gs.com

and geopolitical crosscurrents and divergent trends mid-cap/sponsor M&A (up 34%/10%). ECM volumes were Goldman Sachs India SPL

across investment banking have led to an atypically high up ~105% YoY on 353% IPOs growth, 79% higher Matthew Weng +1(212)902-8484 |

level of investor debate across the group. All in, we are convertibles, and 44% follow-ons growth. Separately, matthew.weng@gs.comGoldman Sachs & Co. LLC

cautiously optimistic on the group, in light of a secondaries (e.g., continuation vehicles and LP stakes) Lokesh Kumar Sangewar

reasonably healthy operating backdrop and valuation volumes rose 58% YoY in 1Q26.2 With estimates largely +1(332)245-7846lokesh.sangewar@gs.com|

entry point. Four key themes into quarterly earnings: 1) unchanged on average across the group, we now forecast Goldman Sachs India SPL

at potentially the midpoint of the still-healthy M&A 13%/13%/8% 2026/27E/28E total revenue growth YoY,

growth cycle, what changes could emerge in the and 130bps/210bps/120bps of YoY pre-tax margin

two-speed IBanking market, in terms of improvement in expansion.