Wall Street Securities Industry Posts Record First-Half 2026 Profits Amid AI-Fueled Boom

In the first six months of 2026, pretax profits for U.S. securities firms rose to $45.9 billion, a 51 % increase over the same period in 2025. The figure, reported by New York State Comptroller Thomas P. DiNapoli, puts the industry on track to exceed $90 billion for the full year, well above the prior-year record of $65.1 billion. The surge was confirmed by a Reuters release on October 6.

New York Post

DiNapoli’s analysis attributes the profit jump to three interlocking forces:

New York Post

• AI-related spending – Venture-capital investment in artificial-intelligence companies reached $407 billion in the first half of the year, more than 50 % higher than total AI funding in 2025.

AI investing takes hold far beyond Wall Street, new data shows

• Deal-making activity – Mergers and acquisitions generated $2.8 trillion in global value, while underwriting fees rose 68 % year-over-year.

CNN

• Elevated trading volumes – Market volatility spurred higher revenues from stocks, bonds and currencies, bolstering broker-dealer earnings.

The Press-Enterprise | Riverside County

The securities industry added 7,000 jobs, bringing New York City’s finance workforce to 207,400—the highest count since tracking began in 2000. Average total compensation rose 11.1 % to $561,770 in 2025, and the industry-wide bonus pool reached $49.2 billion, an average bonus of $246,900 per employee.

DiNAPOLI: WALL STREET FIRST-HALF PROFITS SOAR TO NEARLY $46 BILLION

Higher profits translated into record tax contributions:

Newsday

• State level – Estimated $26.3 billion in tax revenue, a 28.5 % increase year-over-year, representing roughly 20.8 % of all state collections.

DiNAPOLI: WALL STREET FIRST-HALF PROFITS SOAR TO NEARLY $46 BILLION

• City level – Securities-related taxes generated $7.8 billion, a 15.8 % rise, accounting for about 9 % of New York City’s total tax intake.

DiNAPOLI: WALL STREET FIRST-HALF PROFITS SOAR TO NEARLY $46 BILLION

These inflows support public services and reinforce the sector’s share of the city’s gross product (about 18.8 % in 2024).

DiNAPOLI: WALL STREET FIRST-HALF PROFITS SOAR TO NEARLY $46 BILLION

DiNapoli warned of headwinds that could curb future earnings:

New York Post

• Rising bond yields – The 10-year Treasury yield hit 5.35 %, its highest level since 2002, raising borrowing costs.

Fortune Magazine

• Geopolitical tensions – Ongoing conflicts, particularly the war involving Iran, add uncertainty to markets.

Global shares mostly advance after Wall Street gains and oil prices fall

• Inflation and deregulation – Persistent price pressures and a deregulatory agenda could amplify systemic risk.

New York Post

DiNapoli emphasized the sector’s resilience, noting that “the industry has remained resilient” despite external shocks and that profit growth is expected to continue barring a recession or major market disruption.

DiNAPOLI: WALL STREET FIRST-HALF PROFITS SOAR TO NEARLY $46 BILLION

• “Despite geopolitical tensions and economic uncertainty, the industry has remained resilient,” — Thomas P. DiNapoli, New York State Comptroller

CNN

• “Rising yields for bonds issued by the U.S. and other governments in recent weeks are another concerning indicator for investors,” — Thomas P. DiNapoli, New York State Comptroller

CNN

• “Investment in AI companies continues to drive the market,” — Thomas P. DiNapoli, New York State Comptroller

CNN