The chief executive officer of Goldman Sachs (GS) expects a busy period for mergers and acquisitions over the next two years. David Solomon said the environment for large deals looks “constructive” for 2026 and 2027, especially in the U.S. He noted that many companies are ready to move on long-delayed plans, calling it a “tremendous backlog of significant consolidating situations.” According to Solomon, chief executives now feel more confident about pursuing deals that can strengthen their scale and market position.
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Meanwhile, GS shares slightly declined on Monday by 0.49% to close at $785.52.
Cautious Interest Returns to China
During an interview with Bloomberg Television in Hong Kong, Solomon also said that investor interest in China has improved compared with a year ago. Valuations have become more attractive, but he added that trade and geopolitical uncertainty still make many investors cautious. He explained that foreign direct investment in China has declined, and until the global trade picture becomes clearer, a strong rebound may take time. Even so, he said the current flow of funds is helping support a better initial public offering market.
Goldman Sachs recently reported record third-quarter revenue, helped by a rise in fees from merger and acquisition work. The firm told its 48,300 employees that it plans to cut more jobs this year as it continues to use AI to improve efficiency. Solomon’s comments suggest the bank expects stronger deal activity ahead, as corporate leaders look to expand through strategic acquisitions and market consolidation.
Is GS a Good Stock to Buy?
Goldman Sachs boasts a Moderate Buy consensus among the Street’s analysts, with five signaling a Buy and seven rating it a Hold. The average GS stock price target is $824.50, implying a 4.96% upside from the current price.
