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Goldman Q4 Earnings Top Estimates on Solid IB Fees, Stock Gains
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Key Takeaways
GS beat Q4 EPS estimates as Equities, FICC trading and investment banking fees posted double-digit growth.
Goldman saw IB fees jump 25% y/y, with advisory revenues up 41% on a rise in deal-making activity.
Goldman's expenses rose and Platform Solutions swung to a loss on Apple Card loan transfer.
The Goldman Sachs Group, Inc.’s (GS - Free Report) fourth-quarter 2025 earnings per share of $14.01 surpassed the Zacks Consensus Estimate of $11.77 per share. This compares favorably with $11.95 in the year-ago quarter.
The volatile market lifted Goldman's net revenues in Equities by 25% year over year to $4.31 billion. Fixed income, currency and commodities trading revenues rose 12% to $3.11 billion. A solid dealmaking activity led investment banking (IB) fees to jump 25% to $2.58 billion in the quarter. Advisory fees saw a remarkable 41% increase in the fourth quarter, driven by higher completed mergers and acquisitions volumes. Shares of the company rose nearly 1.6% in the early trading session. A full day’s trading session will depict a clearer picture.
Goldman’s overall results have benefited from solid revenue growth in the Global Banking & Markets, and Asset & Wealth Management divisions. These gains were further aided by a sizable net benefit from credit loss provisions related to reserve releases. However, the overall quarterly results were tempered by elevated operating expenses and a decline in net revenues stemming from markdowns tied to the transfer of the Apple Card loan portfolio.
Net earnings attributable to common shareholders were $4.38 billion, up 12% year over year.
For 2025, earnings per share of $51.32 surpassed the Zacks Consensus Estimate of $49.12 per share. This compares favorably with $40.54 in the year-ago period. Net earnings attributable to common shareholders of $16.3 billion increased 21% from the prior year.
GS’s Revenues Decline & Expenses Increase
Net revenues fell 3% to $13.45 billion for the quarter from the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $13.61 billion. The decline reflected weakness in Platform Solutions (which echoed a reduction in net revenues of $2.26 billion related to the transfer of Apple Card loans).
For 2025, net revenues were $58.28 billion, up 9% year over year. The metric missed the Zacks Consensus Estimate of $58.56 billion.
Total operating expenses increased 18% year over year to $9.72 billion, driven by higher compensation and benefits, and increased transaction-based expenses.
The company recorded provision benefits of $2.12 billion in the fourth quarter against provisions for credit losses of $351 million in the year-ago quarter. The net benefit was primarily due to a reserve reduction of $2.48 billion related to the transfer of the Apple Card loans.
Goldman’s Quarterly Segmental Performance
The Asset & Wealth Management division generated revenues of $4.72 billion in the reported quarter, down 1% year over year.
Firmwide assets under supervision were $3.6 trillion, up 14.9% from the prior-year quarter.
The Global Banking & Markets division recorded revenues of $10.41 billion, which increased 22% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing), advisory revenues and strong performances in Fixed income, currency and commodities.
The Platform Solutions division posted a loss of $1.68 billion against revenues of $592 million in the year-ago period due to markdowns related to the transfer of Apple Card loans, partially offset by reserve releases.GS’s Capital Ratio Declines
As of Dec. 31, 2025, the standardized Common Equity Tier 1 capital ratio was 14.4%, down from 15% as of Dec. 31, 2024.
The company’s supplementary leverage ratio was 5.2%, down from 5.5% in the year-ago quarter.
Goldman’s Capital Distribution Update
In the reported quarter, GS returned $16.78 billion in capital to common shareholders. This included $12.36 billion in share repurchases and common stock dividends of $4.42 billion.
On Jan. 14, 2026, the board of directors increased the quarterly dividend to $4.50 per common share from $4.00. The dividend will be paid out on March 30, 2026, to common shareholders of record as of March 2, 2026.
Our View on GS
Goldman’s fourth-quarter 2025 results reflect continued strength in trading and investment banking, supported by active client engagement and improving deal activity. Solid equities and advisory performance, coupled with favorable credit reserve releases, drove earnings growth.
However, elevated expenses and ongoing headwinds in Platform Solutions remain near-term concerns. Still, the firm’s robust capital position, diversified revenue base, its leadership position in IB business, along with the company's acquisition of Industry Ventures, solidify GS's position in the global alternatives market and position it well for long-term growth.
The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise
Jefferies Financial Group’s (JEF - Free Report) fourth-quarter fiscal 2025 (ended Nov. 30) adjusted earnings from continuing operations of 96 cents per share grew 5.5% year over year. The Zacks Consensus Estimate for earnings was 83 cents.
JEF’s results were aided by strong performance and sustained momentum in Investment Banking and Equities, partially offset by lower net revenues in Fixed Income and Asset Management. However, higher expenses remain a spoilsport.
Solid trading performance and higher net interest income (NII) drove JPMorgan’s (JPM - Free Report) fourth-quarter 2025 adjusted earnings of $5.23 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $5.01.
JPM’s markets revenues exceeded management's expectations and grew 17% year over year. Further, the company recorded an increase in NII, driven by higher yields and 11% year-over-year jump in total loans. However, weak IB performance and higher operating expenses and provisions weighed on the results.
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Goldman Q4 Earnings Top Estimates on Solid IB Fees, Stock Gains
Key Takeaways
The Goldman Sachs Group, Inc.’s (GS - Free Report) fourth-quarter 2025 earnings per share of $14.01 surpassed the Zacks Consensus Estimate of $11.77 per share. This compares favorably with $11.95 in the year-ago quarter.
The volatile market lifted Goldman's net revenues in Equities by 25% year over year to $4.31 billion. Fixed income, currency and commodities trading revenues rose 12% to $3.11 billion. A solid dealmaking activity led investment banking (IB) fees to jump 25% to $2.58 billion in the quarter. Advisory fees saw a remarkable 41% increase in the fourth quarter, driven by higher completed mergers and acquisitions volumes. Shares of the company rose nearly 1.6% in the early trading session. A full day’s trading session will depict a clearer picture.
Goldman’s overall results have benefited from solid revenue growth in the Global Banking & Markets, and Asset & Wealth Management divisions. These gains were further aided by a sizable net benefit from credit loss provisions related to reserve releases. However, the overall quarterly results were tempered by elevated operating expenses and a decline in net revenues stemming from markdowns tied to the transfer of the Apple Card loan portfolio.
Net earnings attributable to common shareholders were $4.38 billion, up 12% year over year.
For 2025, earnings per share of $51.32 surpassed the Zacks Consensus Estimate of $49.12 per share. This compares favorably with $40.54 in the year-ago period. Net earnings attributable to common shareholders of $16.3 billion increased 21% from the prior year.
GS’s Revenues Decline & Expenses Increase
Net revenues fell 3% to $13.45 billion for the quarter from the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $13.61 billion. The decline reflected weakness in Platform Solutions (which echoed a reduction in net revenues of $2.26 billion related to the transfer of Apple Card loans).
For 2025, net revenues were $58.28 billion, up 9% year over year. The metric missed the Zacks Consensus Estimate of $58.56 billion.
Total operating expenses increased 18% year over year to $9.72 billion, driven by higher compensation and benefits, and increased transaction-based expenses.
The company recorded provision benefits of $2.12 billion in the fourth quarter against provisions for credit losses of $351 million in the year-ago quarter. The net benefit was primarily due to a reserve reduction of $2.48 billion related to the transfer of the Apple Card loans.
Goldman’s Quarterly Segmental Performance
The Asset & Wealth Management division generated revenues of $4.72 billion in the reported quarter, down 1% year over year.
Firmwide assets under supervision were $3.6 trillion, up 14.9% from the prior-year quarter.
The Global Banking & Markets division recorded revenues of $10.41 billion, which increased 22% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing), advisory revenues and strong performances in Fixed income, currency and commodities.
The Platform Solutions division posted a loss of $1.68 billion against revenues of $592 million in the year-ago period due to markdowns related to the transfer of Apple Card loans, partially offset by reserve releases.GS’s Capital Ratio Declines
As of Dec. 31, 2025, the standardized Common Equity Tier 1 capital ratio was 14.4%, down from 15% as of Dec. 31, 2024.
The company’s supplementary leverage ratio was 5.2%, down from 5.5% in the year-ago quarter.
Goldman’s Capital Distribution Update
In the reported quarter, GS returned $16.78 billion in capital to common shareholders. This included $12.36 billion in share repurchases and common stock dividends of $4.42 billion.
On Jan. 14, 2026, the board of directors increased the quarterly dividend to $4.50 per common share from $4.00. The dividend will be paid out on March 30, 2026, to common shareholders of record as of March 2, 2026.
Our View on GS
Goldman’s fourth-quarter 2025 results reflect continued strength in trading and investment banking, supported by active client engagement and improving deal activity. Solid equities and advisory performance, coupled with favorable credit reserve releases, drove earnings growth.
However, elevated expenses and ongoing headwinds in Platform Solutions remain near-term concerns. Still, the firm’s robust capital position, diversified revenue base, its leadership position in IB business, along with the company's acquisition of Industry Ventures, solidify GS's position in the global alternatives market and position it well for long-term growth.
The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise
The Goldman Sachs Group, Inc. price-consensus-eps-surprise-chart | The Goldman Sachs Group, Inc. Quote
Currently, Goldman carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Financial Firms
Jefferies Financial Group’s (JEF - Free Report) fourth-quarter fiscal 2025 (ended Nov. 30) adjusted earnings from continuing operations of 96 cents per share grew 5.5% year over year. The Zacks Consensus Estimate for earnings was 83 cents.
JEF’s results were aided by strong performance and sustained momentum in Investment Banking and Equities, partially offset by lower net revenues in Fixed Income and Asset Management. However, higher expenses remain a spoilsport.
Solid trading performance and higher net interest income (NII) drove JPMorgan’s (JPM - Free Report) fourth-quarter 2025 adjusted earnings of $5.23 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $5.01.
JPM’s markets revenues exceeded management's expectations and grew 17% year over year. Further, the company recorded an increase in NII, driven by higher yields and 11% year-over-year jump in total loans. However, weak IB performance and higher operating expenses and provisions weighed on the results.