Wall Street Is Heading for Its Most Profitable Year Ever: AI Boom Could Push Profits Past $90 Billion.

Wall Street is barreling toward its most profitable year ever as the artificial intelligence-fueled dealmaking boom, blockbuster stock offerings, and volatile markets deliver a windfall for the financial industry.

Wall Street firms generated $45.9 billion in profits during the first half of 2026, according to a new report from the New York State Comptroller's office. That represents a 51.3% increase from the same period last year and already surpasses the $45.3 billion in profits that had been forecast for the entire year.

If that pace continues, annual profits could top $90 billion, smashing the record $65.1 billion earned in 2025 and putting the industry near its extraordinary post-financial-crisis performance in 2009 even after adjusting for inflation. Behind the surge is a potent combination of booming capital markets, record dealmaking and trading revenue generated by a year of sharp swings across global markets.

Artificial intelligence has emerged as one of the biggest forces driving the activity. Fees earned from underwriting, in which Wall Street firms help companies issue stocks and bonds, surged 68% during the first six months of 2026 compared with the same period in 2025, according to the comptroller's report.

The increase coincided with a 76.5% jump in global equity issuance, fueled in part by SpaceX's enormous initial public offering. Elon Musk's rocket company completed what became the largest IPO ever, providing banks involved in the offering with a major source of underwriting fees.

Debt markets have also been busy. Global debt issuance increased 11.3%, with AI hyperscalers among the companies borrowing heavily as they pour billions of dollars into data centers, chips, energy infrastructure and other resources needed to build and operate increasingly powerful AI systems.

Mergers and acquisitions have added another source of revenue. Global dealmaking reached record levels this year, generating lucrative advisory fees for the banks arranging and financing transactions.

Meanwhile, geopolitical turmoil has helped Wall Street's trading desks. The war with Iran and uncertainty surrounding inflation, interest rates and the global economy have contributed to sharp market moves. While volatility can punish investors, it can also boost revenue for banks as clients trade more frequently and reposition portfolios.

The extraordinary performance underscores Wall Street's importance to New York's finances. The securities industry accounts for a significant share of tax revenue collected by both New York City and New York State, meaning an exceptionally profitable year could translate into a substantial fiscal boost.

The numbers also suggest that Wall Street's fortunes remain far more dependent on national and global financial markets than on New York's local political environment. The industry has continued to thrive despite concerns among some business leaders about Mayor Zohran Mamdani's agenda.