We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Goldman Thrives in Volatile Markets: Trends Emerging From Q1 Results
Read MoreHide Full Article
Key Takeaways
Goldman posted Q1 net revenues of $17.22B, up 14% y/y, near a record high.
GS saw Global Banking & Markets revenues jump 19% as volatility drove client demand for hedging and liquidity.
Goldman's advisory revenues surged 89% y/y, while assets under supervision hit a record $3.65T.
The Goldman Sachs Group, Inc. (GS - Free Report) began 2026 with a strong first quarter, reinforcing how its business thrives in volatile markets. First-quarter 2026 net revenues of $17.22 billion expanded 14% year over year to the second-highest quarterly level in the firm’s history and comfortably surpassed estimates.
A key takeaway from the quarter is that volatility did not stall clients; it pushed them to act differently. Management said that clients leaned more heavily on the firm for execution and insights, and that showed up in the results. Global Banking & Markets net revenues increased 19% year over year to $12.74 billion. In uncertain environments, the demand for hedging, liquidity and market access remains strong, and Goldman effectively captured that demand.
Investment banking also held up well, particularly in advisory. Advisory net revenues jumped 89% year over year to $1.49 billion, driven by a significant increase in completed merger and acquisition volumes. Total investment banking (IB) fees rose 48% to $2.84 billion. While investment banking backlog slipped slightly from the end of 2025, the quarter still suggested that strategic corporate activity can continue, even in uncertain markets. Equities trading stood out as a major contributor, delivering record revenues of $5.33 billion, up 27% year over year. Growth was driven primarily by financing, especially prime financing, which jumped 59% to $2.61 billion.
Meanwhile, Asset & Wealth Management continued to strengthen the firm’s long-term earnings profile. Assets under supervision reached a record $3.65 trillion, while long-term fee-based net inflows extended to a 33rd consecutive quarter. Recent acquisitions, including Industry Ventures and Innovator Capital Management, also point to Goldman’s continued push to deepen its asset platform and expand fee-based growth. That said, the quarter was not without pressure points. Provision for credit losses was $315 million in the first quarter of 2026, up from $287 million in the year-ago quarter.
Together, these segments highlight Goldman’s dual strength, capitalizing on market activity while expanding recurring, fee-based income streams.
How GS’s Peers Stacked Up in Q1
Goldman’s peers JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) also posted strong first-quarter 2026 results.
JPMorgan’s first-quarter tone was defined by robust client activity in trading and better fee momentum. In the Commercial & Investment Bank segment, Markets revenues rose 20% year over year to $11.6 billion, supported by gains in both Fixed Income Markets and Equity Markets. Investment banking improved meaningfully from the prior year, with IB fees up 28% to $2.88 billion. However, JPMorgan’s total non-interest expenses increased 14% year over year to $26.85 billion in the first quarter of 2026.
Morgan Stanley’s first-quarter 2026 results benefited from robust client engagement and strength in IB and trading activities. Advisory revenues surged 74% year over year to $978 million as completed M&A transactions increased, while fixed income underwriting revenues rose 10% to $742 million. Total investment banking revenues in the Institutional Securities division jumped 36% to $2.12 billion. Also, Morgan Stanley posted a strong trading performance. Equity revenues climbed 25% year over year to a record $5.15 billion. Yet, total non-interest expenses rose12% year over year in the first quarter.
GS shares have surged 84.7% in the past year compared with the industry’s growth of 50.6%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 15.1X, above the industry’s average of 13.4X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings implies year-over-year rallies of 15.8% and 10.5%, respectively. The estimates for both years have been revised upward over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Goldman Thrives in Volatile Markets: Trends Emerging From Q1 Results
Key Takeaways
The Goldman Sachs Group, Inc. (GS - Free Report) began 2026 with a strong first quarter, reinforcing how its business thrives in volatile markets. First-quarter 2026 net revenues of $17.22 billion expanded 14% year over year to the second-highest quarterly level in the firm’s history and comfortably surpassed estimates.
A key takeaway from the quarter is that volatility did not stall clients; it pushed them to act differently. Management said that clients leaned more heavily on the firm for execution and insights, and that showed up in the results. Global Banking & Markets net revenues increased 19% year over year to $12.74 billion. In uncertain environments, the demand for hedging, liquidity and market access remains strong, and Goldman effectively captured that demand.
Investment banking also held up well, particularly in advisory. Advisory net revenues jumped 89% year over year to $1.49 billion, driven by a significant increase in completed merger and acquisition volumes. Total investment banking (IB) fees rose 48% to $2.84 billion. While investment banking backlog slipped slightly from the end of 2025, the quarter still suggested that strategic corporate activity can continue, even in uncertain markets. Equities trading stood out as a major contributor, delivering record revenues of $5.33 billion, up 27% year over year. Growth was driven primarily by financing, especially prime financing, which jumped 59% to $2.61 billion.
Meanwhile, Asset & Wealth Management continued to strengthen the firm’s long-term earnings profile. Assets under supervision reached a record $3.65 trillion, while long-term fee-based net inflows extended to a 33rd consecutive quarter. Recent acquisitions, including Industry Ventures and Innovator Capital Management, also point to Goldman’s continued push to deepen its asset platform and expand fee-based growth. That said, the quarter was not without pressure points. Provision for credit losses was $315 million in the first quarter of 2026, up from $287 million in the year-ago quarter.
Together, these segments highlight Goldman’s dual strength, capitalizing on market activity while expanding recurring, fee-based income streams.
How GS’s Peers Stacked Up in Q1
Goldman’s peers JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) also posted strong first-quarter 2026 results.
JPMorgan’s first-quarter tone was defined by robust client activity in trading and better fee momentum. In the Commercial & Investment Bank segment, Markets revenues rose 20% year over year to $11.6 billion, supported by gains in both Fixed Income Markets and Equity Markets. Investment banking improved meaningfully from the prior year, with IB fees up 28% to $2.88 billion. However, JPMorgan’s total non-interest expenses increased 14% year over year to $26.85 billion in the first quarter of 2026.
Morgan Stanley’s first-quarter 2026 results benefited from robust client engagement and strength in IB and trading activities. Advisory revenues surged 74% year over year to $978 million as completed M&A transactions increased, while fixed income underwriting revenues rose 10% to $742 million. Total investment banking revenues in the Institutional Securities division jumped 36% to $2.12 billion. Also, Morgan Stanley posted a strong trading performance. Equity revenues climbed 25% year over year to a record $5.15 billion. Yet, total non-interest expenses rose12% year over year in the first quarter.
Goldman’s Price Performance, Valuation & Estimates
GS shares have surged 84.7% in the past year compared with the industry’s growth of 50.6%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 15.1X, above the industry’s average of 13.4X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings implies year-over-year rallies of 15.8% and 10.5%, respectively. The estimates for both years have been revised upward over the past 30 days.
Estimate Revision Trend
Image Source: Zacks Investment Research
Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.