US Investment Banks: 2026 Q3
It's the Best of Times in Investment Banking. Is It Sustainable?
Investment banking and trading are enjoying a remarkable run. Elevated volatility, strong equity markets, and surging fundraising demand have pushed results to levels rarely seen across the industry.
US and European investment banks posted their strongest trading and dealmaking results in over a decade during the second quarter of 2026, with combined revenue climbing 34% to $280 billion on a trailing 12-month basis- but will this trajectory continue? Morningstar's equity research team sees this strength as largely cyclical, rather than structural.
For investors, analysts, and asset managers weighing exposure to the sector, this report clarifies where valuations have detached from durable earnings power and where selective opportunity still exists. Get the full breakdown of Morningstar's 2026 Q3 outlook for US investment banks.
