Barclays Turns More Confident on Goldman Sachs (GS) as Bank Earnings Stay Strong

The Goldman Sachs Group, Inc. (NYSE:GS) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 5, Barclays raised its price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $1,048 from $850 and kept an Overweight rating. The move followed updates across the large-cap bank group as part of the firm’s 2026 outlook. Barclays expects the same forces that fueled double-digit earnings growth and bank stock outperformance in 2025 to extend into 2026.

A January 6 report from Reuters showed The Goldman Sachs Group, Inc. (NYSE:GS) once again topping global dealmaking league tables in 2025. The year featured high-profile political events and a steady rise in larger transactions, and Goldman took market share to finish No. 1.

The growth of $10 billion-plus deals played a big role. There were 68 such transactions last year, totaling $1.5 trillion, more than double the prior year, based on LSEG data. Goldman advised on 38 of those deals, more than any other bank, with $1.48 trillion in total advised volume. It marked the strongest period for mega deals by count since records began in 1980.

Calling 2025 an “exceptional M&A year,” Goldman’s Global Co-Head of M&A Stephan Feldgoise told clients “it was an extraordinary M&A market,” driven by a “ubiquity of capital,” according to the firm’s 2026 M&A outlook.

Goldman ranked No. 1 in M&A fee revenue and total deal value, gaining share in both categories. The firm collected $4.6 billion in M&A fees. By deal volume, Goldman led the field, followed by JPMorgan and Morgan Stanley, with Bank of America and Citigroup next. In deals involving Europe, the Middle East, and Africa, Goldman’s market share reached 44.7% in 2025, a level seen only once before, in 1999.

The Goldman Sachs Group, Inc. (NYSE:GS) is a global investment banking, securities, and investment management firm serving corporations, financial institutions, governments, and individual clients worldwide.

While we acknowledge the potential of GS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 14 Best Dividend Growth Stocks to Buy and Hold in 2026 and 13 Best January Dividend Stocks to Invest In

Disclosure: None.