- Wall Street securities firms generated $45.9 billion in pretax profits during the first half of 2026, putting the industry on pace to exceed $90 billion for the full year.
Wall Street is heading toward a potentially record-breaking year as securities firms generated $45.9 billion in pretax profits during the first six months of 2026, according to a report released Oct. 6 by New York State Comptroller Thomas DiNapoli. The result was 51.3% higher than the $30.4 billion recorded during the first half of 2025.
If that pace continues, the securities industry could produce more than $90 billion in profits for 2026, substantially above the $65.1 billion recorded in 2025. Bloomberg reported that the surge is also putting Wall Street on course for another strong year for employee bonuses, although the final 2026 bonus pool will not be known until next year.
The figures cover the broker-dealer operations of New York Stock Exchange member firms, rather than every financial institution operating on Wall Street. The number of NYSE member firms included in the measure has fallen to 168 from more than 200 before the global financial crisis.
AI Spending, M&A and Trading Activity Lift Wall Street Profits
The securities industry's $40.3 billion in first-half trading revenue increased 1.8% from the same period in 2025, while stronger merger-and-acquisition activity and enthusiasm surrounding artificial intelligence provided additional sources of business.
The improvement comes as financial markets have remained unusually active. The latest stock market rally has pushed the Nasdaq Composite to repeated records, with Nvidia Corp. (NASDAQ: NVDA), Microsoft Corp. (NASDAQ: MSFT) and other large technology companies driving much of the advance.
Strong markets can support Wall Street firms through trading, underwriting and advisory activity, while higher corporate deal volumes can increase investment-banking revenue.
The rebound in mergers and acquisitions has already produced several large transactions. Among them is C.H. Robinson Worldwide Inc.'s (NASDAQ: CHRW) $5.8 billion acquisition of RXO Inc. (NYSE: RXO), announced Oct. 5. The transaction is expected to create a logistics company with an enterprise value above $25 billion.
The first-half profit figure also exceeds New York City's previous expectation for the entire year. The city had projected 2026 profits of $45.3 billion, meaning Wall Street firms had already surpassed that estimate by the end of June.
The comptroller's office attributed the stronger performance to several factors rather than a single source of revenue. Alongside AI investment and M&A, elevated trading activity amid changing market conditions has helped securities firms maintain profitability despite geopolitical and economic uncertainty.
The broader AI-driven market rally remains important because investment banks and trading firms have benefited from the surge in capital flowing into technology and semiconductor companies. At the same time, the concentration of market gains in large technology stocks creates risks if AI-related spending or valuations weaken.
Wall Street Bonuses Rise as Securities Jobs Reach Record High
The surge in profitability is already feeding into compensation. Employee compensation at NYSE member firms increased 18.8% during the first half of 2026 from the same period a year earlier, according to DiNapoli's report.
Employment has also reached a record. New York City's securities industry employed 207,400 people in 2025, the highest level since the current employment series began in 2000. Preliminary figures indicate that another 5,300 positions could be added during 2026.
The compensation trend follows a strong 2025 bonus season. Wall Street's bonus pool reached $49.2 billion in 2025, an increase of 9% from the previous year, while the average bonus climbed 6% to $246,900.
The previous year's results provide an important benchmark for the current cycle. If securities-industry profitability remains elevated through the second half of 2026, the total compensation pool could rise further.
However, the final size of the 2026 Wall Street bonus pool has not yet been determined. DiNapoli's office now expects bonuses to increase, reversing an earlier projection for a 20% decline, but its formal estimate will not be released until March 2027 using tax-withholding data.
Wall Street's strength also has implications beyond employee pay. The securities industry generated an estimated $26.3 billion in New York state tax revenue during fiscal 2025-26, representing 20.8% of total state tax collections. New York City received an estimated $7.8 billion from the industry during fiscal 2026, up 15.8% from the previous year.
The outlook is not without risks. DiNapoli's office highlighted global conflicts, inflation, higher interest rates, the financial industry's significant exposure to AI-related activity, and changes to financial regulation as potential threats to future profitability.
For investors tracking Wall Street earnings and financial stocks, the first-half numbers point to a major expansion in industry profitability. If firms maintain their current pace, 2026 could become the most profitable year for the securities industry on record while creating the conditions for another increase in Wall Street bonuses.