Results Well Above Expectations

Goldman Sachs reported net revenue of $20.34 billion in the second quarter of 2026, representing year-over-year growth of 39% and quarter-over-quarter growth of 18%. Net income rose 78% to $6.63 billion, and diluted earnings per share reached a record $20.98, compared to $10.91 in the same period last year. Return on average equity increased to 23.5%, and return on tangible equity reached 25.5%. Strong performance continued when looking at the first half of the year as a whole. Net revenue for the six months rose by 27% to $37.57 billion, net income by 45% to $12.26 billion, and diluted earnings per share by 54% to $38.51.[1]

The results significantly exceeded Wall Street expectations. According to LSEG data, analysts had expected earnings of $14.48 per share; the actual result was therefore approximately 45% higher. Investors appreciated not only the fact that the consensus was beaten, but also the breadth of growth across trading, investment banking, and asset management. Goldman Sachs shares rose by about 9% during Tuesday’s trading and closed at an all-time high. This was the strongest gain among the major U.S. banks that reported earnings on the same day. The market’s reaction showed that investors had not anticipated such a significant boost from increased trading activity and the return of large capital transactions.[2]

The Wall Street division was the main driver of growth

The Global Banking & Markets division achieved record net revenue of $15.52 billion, up 53% year-over-year. Investment banking fees alone rose 55% to $3.40 billion. Mergers and acquisitions advisory services generated $1.38 billion, representing 17% growth. Equity underwriting revenue rose 130% to $985 million, as the market was buoyed by both initial public offerings (IPOs) and secondary offerings by already publicly traded companies. Revenues from debt underwriting reached a record $1.03 billion, up 75% year-over-year, driven primarily by acquisition financing and activity related to asset-backed securities. The volume of pending transactions in investment banking increased compared to both the previous quarter and the end of 2025.1

Equity trading delivered the strongest results. Revenues from this segment rose by 72% to a record $7.42 billion. Trading and brokerage of equity products generated $4.16 billion, up 60% year-over-year, while financing of equity positions rose 91% to $3.26 billion. Revenues from trading in bonds, currencies, and commodities rose 32% to $4.59 billion. The Global Banking & Markets segment posted pre-tax income of $7.50 billion, an 84% increase, and net income of $5.82 billion, up 90% year-over-year. The segment’s return on equity reached 27.5%, compared with 14.4% a year ago.1

The AI boom is fueling both transactions and financing

Goldman Sachs is emerging as one of the indirect beneficiaries of investments in artificial intelligence. In the first half of 2026, the bank advised clients on announced mergers and acquisitions totaling $1.2 trillion. According to CFO Denis Coleman, this represented a record pace for any investment bank, with Goldman leading its closest competitor by approximately $425 billion. This activity was driven by large transactions exceeding $10 billion, with many companies using acquisitions to expand their technology and AI capabilities. Goldman was also one of the lead underwriters for SpaceX’s initial public offering. Some analysts noted that this transaction may have boosted trading volumes and equity market-related revenues.[3]

The bank’s management did not provide a precise numerical outlook for net revenue or profit for the remainder of the year. However, the outlook remained clearly positive. CEO David Solomon stated that the acceleration in activity is evident across the business and that clients are turning to Goldman Sachs for their most significant strategic transactions. Based on the current volume of deals in the pipeline, the bank expects the growth cycle to continue in advisory, trading, financing, and asset management. Solomon also views the development of AI infrastructure as a multi-year investment cycle that will require a significant amount of both equity and debt capital. Risks remain regarding the development of geopolitical conflicts, interest rates, tariffs, and financial markets, as these factors could delay or completely halt pending transactions.1 [1]

Asset Management Builds a More Stable Foundation

The Asset & Wealth Management division generated net revenues of $4.60 billion, up 20% year-over-year and 13% quarter-over-quarter. Fees from asset management and other services rose 20% to a record $3.36 billion. Revenue from proprietary investments rose 222% to $441 million, primarily due to higher gains from investments in private companies. Private banking and lending were the weak spots, with revenue falling 13% to $689 million. This was due to a lower interest margin on Marcus deposits, which was only partially offset by higher average client balances. The division generated pre-tax profit of $1.11 billion and achieved a return on equity of 13.8%.1

Assets under supervision increased by $391 billion during the quarter to a record $4.04 trillion, compared with $3.29 trillion a year ago. Clients invested a net $230 billion in Goldman Sachs products, and rising market prices added another $161 billion. Long-term assets recorded a net inflow of $91 billion, with the bank achieving its 34th consecutive quarter of net inflows into long-term fee-based products. Assets in alternative investments rose to $459 billion, and gross new capital raised from external investors reached a record $59 billion. Of this amount, $31 billion went to credit strategies, $16 billion to private equity investments, $9 billion to hedge funds, and $3 billion to real estate.1

Capital, Risks, and Outlook

Goldman Sachs returned $5.36 billion to common shareholders during the quarter. Share buybacks totaled $4 billion, with the bank repurchasing 4.1 million shares at an average price of $984.57. An additional $1.36 billion was paid out in dividends. The quarterly dividend will increase from $4.50 to $5 per share starting in the third quarter, representing an 11% quarter-over-quarter increase and a 25% year-over-year increase. The standardized CET1 capital ratio rose to 12.9%, and the advanced CET1 ratio rose to 13.7%. Total assets reached $2.13 trillion, deposits $558 billion, and average highly liquid assets $555 billion. Book value per share increased to $367.67.1 [2]

Record results do not mean that all parts of the bank grew at the same pace. The Platform Solutions division reported net revenue of only $221 million, down 64% year-over-year, and a pre-tax loss of $48 million. The result was weighed down by an impairment charge on the Apple Card loan portfolio, which the bank reclassified as assets held for sale. Goldman Sachs’ total operating expenses rose 26% to $11.67 billion. Compensation and employee benefits costs increased by 30% to $6.10 billion, and transaction costs rose by 56% to $3.05 billion. The number of employees fell by 2% quarter-over-quarter to 46,200. Future results will therefore depend on whether the bank can maintain high client activity even after the exceptionally strong period in the markets has subsided.1 [3]

[1,2,3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.

[1] https://www.goldmansachs.com/pressroom/press-releases/current/pdfs/2026-q2-results.pdf

[2] https://www.reuters.com/business/finance/wall-st-futures-mixed-ahead-cpi-bank-earnings-us-iran-tensions-focus-2026-07-14/

[3] https://www.reuters.com/legal/transactional/goldmans-profit-jumps-trading-surge-corporate-deal-spree-2026-07-14/