Goldman Sachs Group Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.86%.
Did GS Beat Earnings? Q4 2025 Results
Goldman Sachs closed out 2025 with a striking earnings beat that masked a more complicated revenue picture. The firm posted Q4 earnings per share of $14.01, well ahead of the $11.65 consensus estimate by 20.22%, yet revenue of $13.45 billion fell 2.85% short of the $13.85 billion Wall Street had anticipated and dropped 58.3% year-over-year. The divergence traces directly to the firm's exit from the Apple Card program, which triggered $2.26 billion in net revenue markdowns as the credit card portfolio moved to held-for-sale status, though an offsetting $2.48 billion reserve release in provisions for credit losses cushioned the bottom line considerably. Strip out the Apple Card noise and Q4 revenues would have stood at $15.71 billion. For the full year, Goldman generated $58.28 billion in net revenues, up 9%, with Global Banking and Markets delivering record annual revenues of $41.45 billion. Looking ahead, CEO David Solomon pointed to a growing investment banking backlog and accelerating M&A activity as reasons for confidence heading into 2026, with the firm targeting mid-teens returns on equity through the cycle.
- Significantly higher completed M&A volumes driving Advisory revenue growth of 41% YoY in Q4
- Record Equities financing revenues driven by prime financing and portfolio financing
- Record FICC financing revenues driven by mortgages and structured lending
- Record Management and other fees reflecting higher average assets under supervision
- Net interest income up 58% YoY in Q4 reflecting lower funding costs and higher interest-earning assets
- 32 consecutive quarters of long-term fee-based net inflows
“Since our first Investor Day where we laid out our comprehensive strategy, the firm has grown its revenues by 60%, improved returns by 500 basis points and delivered total shareholder returns of more than 340%. We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026, activating a flywheel of activity across our entire firm. While there are meaningful opportunities to deploy capital across our franchise and to return capital to shareholders, our unwavering focus remains on maintaining a disciplined risk management framework and robust standards.”
Goldman Sachs CEO, on the earnings call
Forward Guidance & Outlook
Goldman Sachs expects momentum to accelerate in 2026, with CEO David Solomon citing high levels of client engagement and a flywheel of activity across the firm. The investment banking fees backlog increased significantly versus year-end 2024 and increased quarter-over-quarter, primarily driven by Advisory. The firm set through-the-cycle firmwide targets of mid-teens ROE (14-16%) and approximately 60% efficiency ratio, noting forward catalysts including strategic M&A activity, supportive capital markets, AI and innovation, accelerating sponsor-led transactions, and a more balanced regulatory backdrop. AWM medium-term targets were updated to approximately 30% pre-tax margin (up from mid-twenties) and high-teens returns. The firm targets $75-100 billion in annual alternatives fundraising and $750 billion in alternatives AUS by 2030. The firm has approximately $32 billion of remaining capacity under its current share repurchase authorization.
GS YoY Financials
GS Revenue by Segment
GS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.