Wall Street investment banks' Q2 fee income expected to hit highest level in four and a half years, with SpaceX IPO as a key driving factor

According to Odaily, based on data compiled by Bloomberg, the five major U.S. investment banks are expected to achieve approximately $11.1 billion in investment banking fee income in the second quarter of 2026, a year-on-year increase of 27% and the highest level since 2021. The growth is mainly driven by the SpaceX IPO and a revival in large-scale M&A transactions. The SpaceX IPO alone contributed about $500 million in fees to the 23 underwriting banks, setting a record for the highest fee income from a public offering in history, with Goldman Sachs and Morgan Stanley each earning around $100 million.

In addition, M&A fee income for the five major investment banks is expected to grow by around 30% year-on-year, reaching more than $4 billion. The market believes that future IPO plans for major tech companies such as SpaceX, OpenAI, and Anthropic could further drive the growth of Wall Street's investment banking business. (Financial Times)