Goldman Sachs posted second-quarter earnings and revenue well above analyst expectations, driven by record performance in equities trading and a solid rebound in investment banking activity.
The bank reported earnings of $10.91 per share, exceeding the LSEG estimate of $9.53, with total revenue hitting $14.58 billion versus the projected $13.47 billion. The results mark a 22% year-over-year increase in profit, fueled by market volatility and a resurgence in dealmaking.
Equities trading led the way with $4.3 billion in revenue—up 36% from a year earlier—setting a new record for the bank. Fixed income, currencies, and commodities (FICC) brought in $3.47 billion, up 9% annually.
These figures outpaced forecasts by $840 million on trading revenue alone, underscoring strong client activity during a quarter defined by policy-driven volatility.
Goldman’s investment banking fees rose 26% to $2.19 billion, as advisory revenues surged and dealmaking showed renewed momentum. While debt underwriting dipped slightly, the rebound in M&A advisory offset the decline.
The pickup in investment banking follows a broader trend across Wall Street, with JPMorgan, Citigroup, and Wells Fargo also reporting stronger-than-expected earnings earlier in the week.
In contrast, revenue from the bank’s asset and wealth management division fell 3% to $3.78 billion. The decline was attributed to weaker performance in equity and debt investments. Despite the drop, the segment remains strategically important for its recurring revenue potential and lower volatility compared to trading.
Goldman also increased its provisions for credit losses to $384 million, up from $282 million a year ago, mainly due to its credit card exposure. Meanwhile, after clearing the Federal Reserve’s annual stress test, the bank will boost its dividend by $1 a share starting in Q3.
Goldman’s stock has gained 23% year-to-date, ranking it among the top five performers in the S&P 500 financial sector. Shares rose 0.4% in pre-market trading following the Q2 release. Despite some shareholder pushback on executive compensation—highlighted by an $80 million retention package for CEO David Solomon—investor sentiment remains largely positive.
With record trading performance, a rebound in investment banking, and a rising dividend, Goldman Sachs appears well-positioned for further gains. Continued volatility and active markets should support trading desks, while improving deal flow adds to revenue momentum. The stock’s strong year-to-date performance and sector leadership point to a bullish short-term outlook.
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James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.