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Goldman beat Q2 earnings estimates as record trading and IB revenues boosted the results.
GS posted record Equities revenues, and FICC and investment banking fees rose sharply.
Goldman returned $5.36B to shareholders and raised its quarterly dividend 11%.
The Goldman Sachs Group, Inc. (GS - Free Report) has reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago.
Driven by robust client activity, Goldman posted record net revenues in Equities of $7.42 billion, which jumped 72% year over year, while fixed income, currencies and commodities (FICC) revenues climbed 32% to $4.59 billion. Strong dealmaking activity lifted investment banking (IB) fees 55% to $3.40 billion, supported by solid growth in advisory, equity underwriting and record debt underwriting revenues. Driven by these positives, shares of Goldman rose nearly 3% in the early trading session. A full day’s trading session will depict a clearer picture.
Goldman’s overall results benefited from strong revenue growth in the Global Banking & Markets and Asset & Wealth Management businesses, while profitability was highlighted by an annualized return on equity of 23.5%. However, higher operating expenses created a headwind. Shares of the company rose in the pre-market trading following the earnings release.
Net earnings attributable to common shareholders were $6.40 billion, up 84% year over year.
GS’s Revenues & Expenses Increase
Net revenues were $20.34 billion, rising 39% year over year and comfortably surpassing the Zacks Consensus Estimate of $16.49 billion by 23.3%.
On the cost side, operating expenses were $11.67 billion, up 26% from the prior-year quarter. Management attributed the increase primarily to significantly higher compensation and benefits expenses, reflecting improved operating performance, along with substantially higher transaction-based expenses.
Even with higher costs, Goldman’s efficiency ratio declined 6 basis points to 57.4% for the quarter, reflecting continued operating leverage.
Provision for credit losses was $102 million, down sharply from $384 million in the year-ago quarter, primarily reflecting impairments related to wholesale loans.
Goldman’s Quarterly Segmental Performance
Asset & Wealth Management generated net revenues of $4.60 billion, up 20% year over year. The increase primarily reflected record management and other fees, driven by higher average assets under supervision and significantly higher investment gains from private equity investments, partially offset by weaker private banking and lending revenues. The franchise continued to scale meaningfully. Total assets under supervision increased to a record $4.04 trillion, reflecting $230 billion in total net inflows and $91 billion in long-term net inflows during the quarter.
Global Banking & Markets generated record net revenues of $15.52 billion, up 53% year over year. Growth was driven by record Equities revenues, stronger FICC performance and significantly higher investment banking fees across advisory, equity underwriting and debt underwriting.
Platform Solutions reported net revenues of $221 million, down 64% from the year-ago quarter. The decline primarily reflected net markdowns related to the Apple Card loan portfolio, which had previously been transferred to held for sale.
GS’ Balance Sheet & Capital Position
Goldman ended the second quarter with total assets of $2.13 trillion, up from $2.06 trillion at the end of the first quarter, while deposits were $558 billion compared with $561 billion in the previous quarter. Total loans increased sequentially to $261 billion from $253 billion.
Capital ratios strengthened sequentially. The standardized CET1 capital ratio improved to 12.9% from 12.5%, while the advanced CET1 ratio rose to 13.7% from 13.3%. The supplementary leverage ratio was 4.3% compared with 4.7% in the prior quarter.
During the quarter, Goldman returned $5.36 billion to shareholders, including $4 billion in common share repurchases and $1.36 billion in common stock dividends. Moreover, after clearing this year’s stress test, the company also raised its quarterly dividend 11% to $5 per share, effective in the third quarter.
Our View on GS
Goldman delivered an exceptional second quarter, fueled by record performances across trading and IB businesses. Robust client activity, strong capital markets execution and continued momentum in Asset & Wealth Management drove results. While higher operating expenses remain worth monitoring, improving credit costs, record assets under supervision and strong capital ratios reinforce Goldman’s favorable long-term growth outlook.
The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise
Performance & Earnings Dates of Other Financial Firms
JPMorgan’s (JPM - Free Report) second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago.
Strong Markets and IB activity powered core growth for JPMorgan, while net interest income (NII) got support from decent loan demand.
Morgan Stanley (MS - Free Report) is slated to report second-quarter 2026 numbers tomorrow.
Over the past week, the Zacks Consensus Estimate for Morgan Stanley’s quarterly earnings has been revised 4% north to $2.89. This indicates 35.7% growth from the prior-year quarter.
View the Zacks #1 Rank List
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Goldman Q2 Earnings Beat on Solid Trading & IB Revenues, Shares Rise
Key Takeaways
The Goldman Sachs Group, Inc. (GS - Free Report) has reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago.
Driven by robust client activity, Goldman posted record net revenues in Equities of $7.42 billion, which jumped 72% year over year, while fixed income, currencies and commodities (FICC) revenues climbed 32% to $4.59 billion. Strong dealmaking activity lifted investment banking (IB) fees 55% to $3.40 billion, supported by solid growth in advisory, equity underwriting and record debt underwriting revenues. Driven by these positives, shares of Goldman rose nearly 3% in the early trading session. A full day’s trading session will depict a clearer picture.
Goldman’s overall results benefited from strong revenue growth in the Global Banking & Markets and Asset & Wealth Management businesses, while profitability was highlighted by an annualized return on equity of 23.5%. However, higher operating expenses created a headwind. Shares of the company rose in the pre-market trading following the earnings release.
Net earnings attributable to common shareholders were $6.40 billion, up 84% year over year.
GS’s Revenues & Expenses Increase
Net revenues were $20.34 billion, rising 39% year over year and comfortably surpassing the Zacks Consensus Estimate of $16.49 billion by 23.3%.
On the cost side, operating expenses were $11.67 billion, up 26% from the prior-year quarter. Management attributed the increase primarily to significantly higher compensation and benefits expenses, reflecting improved operating performance, along with substantially higher transaction-based expenses.
Even with higher costs, Goldman’s efficiency ratio declined 6 basis points to 57.4% for the quarter, reflecting continued operating leverage.
Provision for credit losses was $102 million, down sharply from $384 million in the year-ago quarter, primarily reflecting impairments related to wholesale loans.
Goldman’s Quarterly Segmental Performance
Asset & Wealth Management generated net revenues of $4.60 billion, up 20% year over year. The increase primarily reflected record management and other fees, driven by higher average assets under supervision and significantly higher investment gains from private equity investments, partially offset by weaker private banking and lending revenues. The franchise continued to scale meaningfully. Total assets under supervision increased to a record $4.04 trillion, reflecting $230 billion in total net inflows and $91 billion in long-term net inflows during the quarter.
Global Banking & Markets generated record net revenues of $15.52 billion, up 53% year over year. Growth was driven by record Equities revenues, stronger FICC performance and significantly higher investment banking fees across advisory, equity underwriting and debt underwriting.
Platform Solutions reported net revenues of $221 million, down 64% from the year-ago quarter. The decline primarily reflected net markdowns related to the Apple Card loan portfolio, which had previously been transferred to held for sale.
GS’ Balance Sheet & Capital Position
Goldman ended the second quarter with total assets of $2.13 trillion, up from $2.06 trillion at the end of the first quarter, while deposits were $558 billion compared with $561 billion in the previous quarter. Total loans increased sequentially to $261 billion from $253 billion.
Capital ratios strengthened sequentially. The standardized CET1 capital ratio improved to 12.9% from 12.5%, while the advanced CET1 ratio rose to 13.7% from 13.3%. The supplementary leverage ratio was 4.3% compared with 4.7% in the prior quarter.
During the quarter, Goldman returned $5.36 billion to shareholders, including $4 billion in common share repurchases and $1.36 billion in common stock dividends. Moreover, after clearing this year’s stress test, the company also raised its quarterly dividend 11% to $5 per share, effective in the third quarter.
Our View on GS
Goldman delivered an exceptional second quarter, fueled by record performances across trading and IB businesses. Robust client activity, strong capital markets execution and continued momentum in Asset & Wealth Management drove results. While higher operating expenses remain worth monitoring, improving credit costs, record assets under supervision and strong capital ratios reinforce Goldman’s favorable long-term growth outlook.
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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Dates of Other Financial Firms
JPMorgan’s (JPM - Free Report) second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago.
Strong Markets and IB activity powered core growth for JPMorgan, while net interest income (NII) got support from decent loan demand.
Morgan Stanley (MS - Free Report) is slated to report second-quarter 2026 numbers tomorrow.
Over the past week, the Zacks Consensus Estimate for Morgan Stanley’s quarterly earnings has been revised 4% north to $2.89. This indicates 35.7% growth from the prior-year quarter.