Goldman Sachs reported record quarterly revenue and earnings per share on Tuesday as booming equities trading, stronger underwriting activity and rising asset-management fees propelled second-quarter profit well beyond Wall Street expectations.
The New York-based bank generated net revenue of $20.34 billion in the three months through June, up 39% from a year earlier.
Net earnings jumped 78% to $6.63 billion, while diluted earnings per share surged 92% to a record $20.98.
Analysts surveyed by FactSet had expected earnings of about $14.51 per share on revenue of $16.23 billion.
Goldman therefore exceeded the consensus EPS estimate by roughly 45% and the revenue forecast by about 25%.
Annualised return on average common shareholders’ equity, a key measure of profitability, climbed to 23.5% from 12.8% in the corresponding quarter last year.
Return on tangible common equity reached 25.5%. The company described the period as a record quarter for revenue and diluted EPS, while net earnings were the second highest in its history.
Record equities revenue drives the earnings surprise
Global Banking & Markets delivered record net revenue of $15.52 billion, a 53% increase from the previous year.
The performance was led by equities, where revenue climbed 72% to a record $7.42 billion.
Equities intermediation revenue rose 60% to a record $4.16 billion, reflecting stronger activity across cash products and derivatives.
Equities financing revenue almost doubled to a record $3.26 billion as client balances increased.
Fixed-income, currency and commodities revenue advanced 32% to $4.59 billion.
That included record FICC financing revenue of $1.22 billion, helping reverse one of the main concerns that weighed on sentiment after the first quarter.
Investment-banking fees increased 55% to $3.40 billion. Equity underwriting revenue more than doubled to $985 million, while debt underwriting rose 75% to a record $1.03 billion.
Advisory revenue gained 17% to $1.38 billion as completed mergers and acquisitions supported activity.
Goldman also said its investment-banking fee backlog increased from both the first quarter and the end of 2025, offering some visibility into future revenue.
Asset management provides a broader source of growth
Asset & Wealth Management revenue rose 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 attracting $230 billion of total net inflows during the quarter.
Long-term fee-based assets recorded net inflows of $91 billion, marking the company’s 34th consecutive quarter of positive inflows.
Goldman also raised a record $59 billion from third parties for alternative investments.
The strength offsets softer results in private banking and lending, where revenue declined 13% to $689 million.
Goldman attributed the drop primarily to a lower net interest margin on Marcus deposits.
Platform Solutions revenue fell 64% to $221 million, partly reflecting valuation markdowns and transition costs associated with the Apple Card loan portfolio.
Ahead of the results, Oppenheimer analysts warned through MarketWatch that investment banks had entered a “late-cycle” phase.
Goldman’s accelerating fee backlog and record underwriting results challenge that cautious view, although deal activity remains sensitive to market confidence and economic conditions.
Returns surge as Goldman raises its dividend
Operating expenses increased 26% to $11.67 billion as compensation rose alongside revenue.
Even so, Goldman’s quarterly efficiency ratio improved to 57.4%, indicating that revenue expanded considerably faster than its underlying cost base. Headcount declined 2% from the previous quarter.
Provision for credit losses fell to $102 million from $384 million a year earlier, reflecting lower consumer-related provisions and an improved credit backdrop.
Goldman returned $5.36 billion to shareholders during the quarter, including $4 billion through share repurchases and $1.36 billion in dividends.
The bank raised its quarterly dividend by 11% to $5 per share.
Chief Executive David Solomon said momentum had accelerated across Goldman’s businesses and pointed to strong client pipelines as evidence that activity could continue.
For Goldman Sachs stock, the results remove immediate concerns around fixed-income trading and demonstrate the earnings power available when dealmaking and market activity strengthen simultaneously.
The larger question is whether record equity revenue and unusually strong profitability can be sustained, particularly after the quarter established a considerably higher benchmark for future results.
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