Goldman Sachs stock jumps on record Q2 revenue, EPS

Goldman Sachs reported record quarterly net revenue of $20.34 billion and diluted earnings per share of $20.98 for the three months ended June, sending its stock higher after results outpaced analysts’ forecasts by roughly 25% on revenue and 45% on EPS. Net earnings rose 78% to $6.63 billion, while diluted EPS climbed 92% year over year.

Net revenue increased 39% from a year earlier. Annualised return on average common shareholders’ equity rose to 23.5% from 12.8% a year earlier, and return on tangible common equity reached 25.5%. The company described the quarter as a record for revenue and diluted EPS and noted net earnings were the second highest in its history.

Global Banking & Markets produced record net revenue of $15.52 billion, up 53% from the prior year. Equities revenue climbed 72% to $7.42 billion, with equities intermediation revenue of $4.16 billion (up 60%) and equities financing revenue of $3.26 billion, which nearly doubled as client balances increased. Fixed-income, currency and commodities revenue rose 32% to $4.59 billion, including record FICC financing revenue of $1.22 billion.

Investment-banking fees increased 55% to $3.40 billion. Equity underwriting revenue more than doubled to $985 million, while debt underwriting rose 75% to $1.03 billion. Advisory fees were $1.38 billion, up 17% from a year earlier. The firm said its investment-banking fee backlog grew versus both the first quarter and the end of 2025.

Asset & Wealth Management revenue climbed 20% to $4.60 billion, supported by record management and other fees of $3.36 billion. Assets under supervision reached an all-time high of $4.04 trillion after $230 billion of total net inflows during the quarter. Long-term fee-based assets recorded net inflows of $91 billion, marking the 34th consecutive quarter of positive inflows, and the firm raised a record $59 billion from third parties for alternative investments. Revenue in private banking and lending fell 13% to $689 million, driven mainly by a lower net interest margin on Marcus deposits. Platform Solutions revenue declined 64% to $221 million, reflecting valuation markdowns and transition costs tied to the Apple Card loan portfolio.

Operating expenses rose 26% to $11.67 billion as compensation increased with revenue, but the efficiency ratio improved to 57.4%. Headcount fell 2% from the prior quarter. Provision for credit losses declined to $102 million from $384 million a year earlier.

Goldman returned $5.36 billion to shareholders in the quarter, including $4 billion in share repurchases and $1.36 billion in dividends, and raised its quarterly dividend by 11% to $5 per share. Chief Executive David Solomon noted accelerating momentum across the firm’s businesses and pointed to strong client pipelines as evidence of continued activity.