Wall Street’s Deal Machine Isn’t Slowing Down After Record 2025

After a massive year, Wall Street is already hungry for more. Global M&A jumped 45% from last year, driven by a record 68 megadeals and sharply higher average deal sizes. Bankers expect the momentum to carry into 2026 — fueled by boardroom conviction and looser regulation under Trump — though not everyone may benefit equally.

• Netflix’sNFLX
  $72B bid for Warner Bros. DiscoveryWBD
  and Union Pacific’sUNP
  $72B takeover of Norfolk Southern helped make 2025 the second-richest year on record, trailing only 2021.
• In 2026, bankers anticipate spinoffs, crypto M&A, and Middle Eastern sovereign wealth capital to drive deal flow — with several firms already hiring aggressively in anticipation.

The sleeper opportunity: While the dealmaking surge lifted mega-bank stocks by up to 72% in 2025, regional banks largely missed out — leaving them trading at just 45% of the S&P 500’s price-earnings ratio (vs. 81% historically). Catherine Mealor, a KBW managing director, expects the M&A boom and a steepening yield curve to deliver a “banner year” as the group plays catch-up. She highlights FlagstarFLG

, GlacierGBCI

, and DimeDCOM

as best positioned for margin expansion. The crumbs from 2025’s feast could be 2026’s main course.