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Why Is Goldman (GS) Up 5.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Goldman Sachs (GS - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Goldman due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for The Goldman Sachs Group, Inc. before we dive into how investors and analysts have reacted as of late.
Goldman's second-quarter 2025 adjusted earnings per share of $10.91 surpassed the Zacks Consensus Estimate of $9.43. This compares favorably with $8.62 in the year-ago quarter.
The volatile market lifted Goldman's net revenues in Equities by 36% year over year to $4.3 billion. Fixed income, currency and commodities trading revenues rose 9% year over year to $3.5 billion. Investment Banking fees rose 26% year over year to $2.2 billion in the quarter, driven by significantly higher net revenues in Advisory, reflecting strength in the Americas and EMEA.
Goldman’s results benefited from solid growth in the Global Banking & Markets division. Yet, increased expenses and provision were concerning.
Net earnings (GAAP basis) of $3.7 billion increased 22% from the prior-year quarter.
Revenues & Expenses Increase
Net revenues rose 15% to $14.6 billion for the quarter from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 8.1%.
Total operating expenses increased 8% year over year to $9.2 billion.
Provision for credit losses was $384 million, up 36% from the prior-year quarter.
Quarterly Segmental Performance: Mixed Bag
The Asset & Wealth Management division generated revenues of $3.8 billion in the reported quarter, down 3% year over year. The decrease reflected significantly lower net revenues in equity investments and debt investments, partially offset by higher management and other fees.
Firmwide assets under supervision were $3.3 trillion, up 12.2% from the prior-year quarter.
The Global Banking & Markets division recorded revenues of $10.1 billion, which increased 24% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing) and strong performances in Fixed income, currency and commodities.
The Platform Solutions division’s revenues were $685 million, up 2% year over year.
Capital Ratio Declines
As of June 30, 2025, the standardized Common Equity Tier 1 capital ratio was 14.5%, down from 14.8% as of June 30, 2024.
The company’s supplementary leverage ratio was 5.3%, down from 5.4% in the year-ago quarter.
Capital Distribution Update
In the reported quarter, Goldman returned $3.96 billion in capital to common shareholders. This included $3 billion in share repurchases and common stock dividends of $957 million.
2025 Outlook
The company expects the tax rate to be 22%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Goldman has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Goldman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Goldman is part of the Zacks Financial - Investment Bank industry. Over the past month, JPMorgan Chase & Co. (JPM - Free Report) , a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended June 2025 more than a month ago.
JPMorgan Chase & Co. reported revenues of $44.91 billion in the last reported quarter, representing a year-over-year change of -10.5%. EPS of $4.96 for the same period compares with $4.40 a year ago.
For the current quarter, JPMorgan Chase & Co. is expected to post earnings of $4.69 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.7% over the last 30 days.
JPMorgan Chase & Co. has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Why Is Goldman (GS) Up 5.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Goldman Sachs (GS - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Goldman due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for The Goldman Sachs Group, Inc. before we dive into how investors and analysts have reacted as of late.
Goldman Q2 Earnings Beat Estimates, Boosts Dividend 33.3%
Goldman's second-quarter 2025 adjusted earnings per share of $10.91 surpassed the Zacks Consensus Estimate of $9.43. This compares favorably with $8.62 in the year-ago quarter.
The volatile market lifted Goldman's net revenues in Equities by 36% year over year to $4.3 billion. Fixed income, currency and commodities trading revenues rose 9% year over year to $3.5 billion. Investment Banking fees rose 26% year over year to $2.2 billion in the quarter, driven by significantly higher net revenues in Advisory, reflecting strength in the Americas and EMEA.
Goldman’s results benefited from solid growth in the Global Banking & Markets division. Yet, increased expenses and provision were concerning.
Net earnings (GAAP basis) of $3.7 billion increased 22% from the prior-year quarter.
Revenues & Expenses Increase
Net revenues rose 15% to $14.6 billion for the quarter from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 8.1%.
Total operating expenses increased 8% year over year to $9.2 billion.
Provision for credit losses was $384 million, up 36% from the prior-year quarter.
Quarterly Segmental Performance: Mixed Bag
The Asset & Wealth Management division generated revenues of $3.8 billion in the reported quarter, down 3% year over year. The decrease reflected significantly lower net revenues in equity investments and debt investments, partially offset by higher management and other fees.
Firmwide assets under supervision were $3.3 trillion, up 12.2% from the prior-year quarter.
The Global Banking & Markets division recorded revenues of $10.1 billion, which increased 24% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing) and strong performances in Fixed income, currency and commodities.
The Platform Solutions division’s revenues were $685 million, up 2% year over year.
Capital Ratio Declines
As of June 30, 2025, the standardized Common Equity Tier 1 capital ratio was 14.5%, down from 14.8% as of June 30, 2024.
The company’s supplementary leverage ratio was 5.3%, down from 5.4% in the year-ago quarter.
Capital Distribution Update
In the reported quarter, Goldman returned $3.96 billion in capital to common shareholders. This included $3 billion in share repurchases and common stock dividends of $957 million.
2025 Outlook
The company expects the tax rate to be 22%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Goldman has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Goldman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Goldman is part of the Zacks Financial - Investment Bank industry. Over the past month, JPMorgan Chase & Co. (JPM - Free Report) , a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended June 2025 more than a month ago.
JPMorgan Chase & Co. reported revenues of $44.91 billion in the last reported quarter, representing a year-over-year change of -10.5%. EPS of $4.96 for the same period compares with $4.40 a year ago.
For the current quarter, JPMorgan Chase & Co. is expected to post earnings of $4.69 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.7% over the last 30 days.
JPMorgan Chase & Co. has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.