Goldman Sachs Group Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +9.52%.
Did GS Beat Earnings? Q1 2025 Results
Goldman Sachs opened 2025 with a standout quarter, posting earnings per share of $14.12 against a consensus estimate of $12.27, a beat of 15.07%, while revenue of $15.06 billion cleared expectations by 2.38%, cementing what the firm described as its third-highest quarterly net revenues on record. The primary engine behind the outperformance was a record quarter in Equities within the Global Banking & Markets segment, where revenues surged 27% year over year on significantly higher derivatives activity and record financing revenues, helping to offset an 8% decline in investment banking fees as advisory activity pulled back from a strong prior-year period. A sharply lower effective tax rate of 16.1%, driven by roughly $525 million in share-based award settlement benefits worth $1.63 per diluted share, further amplified the bottom-line result. Goldman also announced a new $40 billion share repurchase authorization, which lifted shares approximately 6% on the day. Looking ahead, CEO David Solomon cautioned that tariff-driven volatility and trade policy uncertainty are reshaping the operating environment entering Q2, though an expanding advisory backlog offers some reassurance on deal flow recovery.
- Record Equities net revenues driven by significantly higher derivatives and portfolio financing activity
- Record financing net revenues in both Equities and FICC
- Net interest income surged 111% YoY to $2.90 billion reflecting higher-yielding assets and lower funding costs
- Management and other fees grew 10% YoY on higher average assets under supervision
- Effective tax rate of 16.1% boosted EPS by $1.63 from employee share-based award tax benefits
- Record assets under supervision of $3.17 trillion with 29th consecutive quarter of long-term fee-based net inflows
- Significantly lower CIE expenses including impairments and absence of FDIC special assessment fee
“Our strong results this quarter have demonstrated that in times of great uncertainty, clients turn to Goldman Sachs for execution and insight. While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients.”
Goldman Sachs CEO, on the earnings call
Forward Guidance & Outlook
CEO David Solomon noted that the firm is entering Q2 2025 with a markedly different operating environment than earlier in the year, referencing elevated uncertainty. However, he expressed confidence in Goldman Sachs' ability to continue supporting clients. The investment banking fees backlog increased compared with the end of 2024, primarily driven by Advisory. The firm cautioned that changes in international trade policies, including tariffs, hostilities, and securities market volatility could materially affect future results. The firm also noted ongoing efforts to transition the GM credit card program and exit historical principal investments over the medium term.
GS YoY Financials
GS Revenue by Segment
GS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.