Strong First Half Could Push 2026 Profits to New Record and Boost State and City Tax Revenues
Wall Street is on pace for a far stronger year than anticipated, with profits reaching $45.9 billion in the first half of 2026, up 51.3% from the same period last year, according to a report released today by New York State Comptroller Thomas P. DiNapoli. First-half profits have already surpassed New York City’s $45.3 billion forecast for the entire year, and if the pace of growth continues, profits could exceed $90 billion in 2026. DiNapoli also noted that industry jobs reached a record high in 2026 and expects the 2026 bonus pool to increase, compared with the city’s projection of a 20% decline.
“Wall Street is having an exceptionally strong year, fueled by a boom in artificial intelligence spending, increased merger and acquisition activity, and elevated trading volumes amid market volatility,” DiNapoli said. “Despite geopolitical tensions and economic uncertainty, the industry has remained resilient. Barring a recession or major market disruption, strong profits should continue to provide an important boost to state and city revenue.”
DiNapoli’s report uses a traditional measure of the securities industry’s performance by looking at the pretax profits of the broker/dealer operations of New York Stock Exchange (NYSE) member firms. There are 168 NYSE member firms, down from more than 200 in 2007 before the global financial crisis.
Despite strong first-half results, risks remain, including ongoing global conflicts, high inflation and rising interest rates, the outsized contributions of the AI sector, and the deregulatory push of the current administration.
Full-year 2025 profits totaled $65.1 billion, up 30.4% from $49.9 billion in 2024 and an all-time record, although not when adjusted for inflation.
From 2019 through 2025, employment in the securities industry in New York state increased 12.2%, or 24,300 jobs, the largest number of jobs added by any state during this period. New York state had 223,600 securities industry jobs in 2025, more than twice the 102,600 in California, which ranked second nationally.
While New York added the most securities industry jobs during this period, some states experienced faster rates of growth from smaller employment bases. From 2019 to 2025, Texas added 18,800 jobs, an increase of 25.8%, reaching 91,800 jobs in 2025. Utah had the nation’s fastest growth rate at 46.1%, reaching 10,900 securities industry jobs.
Preliminary data for the first quarter of 2026 show New York state added 6,400 securities industry jobs compared with the same period in 2025, the largest numerical increase of any state, while its 2.9% growth rate exceeded the national rate of 2.4%.
The average annual salary, including bonuses, in New York City’s securities industry rose 11.1% to $561,770 in 2025. The industry average salary was more than five times the average salary in the rest of the city’s private sector ($106,880).
The 2025 bonus pool totaled $49.2 billion, equal to an average bonus of $246,900 per employee, up 6% from the previous year.
NYSE member firms spent 18.8% more on employee compensation, including salaries, bonuses and equity awards, in the first half of 2026 compared with the same period in 2025. Combined with strong profits and employment, DiNapoli expects the 2026 bonus pool to increase, barring significant economic disruption, compared with the city’s forecast of a 20% decline.
DiNapoli will release the office’s 2026 bonus estimates in March 2027 based on tax withholding data.
The industry generated an estimated $26.3 billion in tax revenue for New York state in State Fiscal Year 2025‑26, up 28.5% from the previous year and representing 20.8% of all state tax collections. Personal income taxes accounted for 88.3% of securities industry-related state tax receipts. As the outlook improved, the state revised its expectations for bonuses in the broader finance and insurance sector upward, from a projected 4.9% increase to a 7.3% increase.
The securities industry generated an estimated $7.8 billion in tax revenue for New York City in City Fiscal Year (CFY) 2026, up 15.8% from the previous year, representing 9.2% of the city’s total tax collections. The $7.8 billion exceeded the previous record of $6.9 billion in CFY 2022 by 12.2%. About two-thirds (66%) of the industry’s tax contribution came from personal income taxes, with securities industry receipts accounting for nearly one-quarter (24%) of the city’s total personal income tax collections.
DiNapoli estimates that 1‑in‑13 jobs (8%) in New York City were directly or indirectly associated with the securities industry in 2024.
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