Key Takeaways:
Jefferies on Monday raised its first-quarter earnings estimates for Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS), citing a surge in trading revenue. The firm now sees Goldman earning $15.60 per share, an 11% increase from its prior forecast.
The brokerage attributed the revision to a "surge in trading activity amid volatile markets," according to a note released April 6, 2026. Jefferies increased its earnings per share estimate for Morgan Stanley by 7% to $2.87.
Despite the increases, both of Jefferies' new estimates remain slightly below consensus forecasts for the quarter.
The positive revision from a notable brokerage could lead to increased investor optimism ahead of the banks' official first-quarter reports. This action sets a bullish tone for the investment banking sector's performance, suggesting that volatile markets have directly benefited trading desks. Investors will be watching closely to see if this trading strength can offset any weakness in dealmaking.
The upgrades suggest that Wall Street's largest trading operations have successfully capitalized on market volatility. Investors will now focus on the official earnings releases later this month to confirm the strength and to assess the outlook for the second quarter.
This article is for informational purposes only and does not constitute investment advice.
