NEW YORK—Despite rising inflation, war in the Middle East and other economic risks, 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 on Tuesday 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. Mr. 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,” Mr. 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.”