Wall Street investment banks’ second-quarter fee income expected to hit four-and-a-half year high, with SpaceX IPO as key catalyst

According to data compiled by Bloomberg, the five largest U.S. investment banks are expected to generate approximately $11.1 billion in investment banking fee income for the second quarter of 2026, a 27% increase year-on-year, marking the highest level since 2021. The growth is primarily driven by the SpaceX IPO and a resurgence in large M&A deals. The SpaceX IPO alone contributed approximately $500 million in fees to the 23 underwriting banks, setting a new record for the highest fees ever generated from a public offering. Goldman Sachs and Morgan Stanley each earned around $100 million from the deal.Additionally, M&A advisory fees for the five major banks are expected to rise approximately 30% year-over-year to over $4 billion. Market observers believe that future listing plans of major tech companies such as SpaceX, OpenAI, and Anthropic could further drive growth in Wall Street investment banking activities. (Financial Times)