Goldman Sachs (GS) Stock: Earnings Smash Estimates on Trading Revenue

TLDR

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Goldman Sachs posted Q4 earnings of $14.01 per share, crushing analyst expectations of $11.70, with profit reaching $4.38 billion.
Trading desks delivered record results with equity revenue hitting $4.31 billion and fixed income trading up 12.5% to $3.11 billion.
Investment banking fees jumped 25% to $2.58 billion as the bank led global M&A advisory with $1.48 trillion in deals.
Apple card exit added 46 cents per share and freed up $2.48 billion in loan loss reserves.
The bank raised its dividend to $4.50 per share while assets under supervision reached $3.61 trillion.

Goldman Sachs crushed earnings expectations with fourth-quarter profit climbing to $4.38 billion. Earnings per share of $14.01 topped Wall Street’s $11.70 estimate by a wide margin.

$GS (Goldman Sachs) #earnings are out: pic.twitter.com/51nMldRCMu
— The Earnings Correspondent (@earnings_guy) January 15, 2026

The results show traders making the most of market volatility tied to Federal Reserve rate decisions and AI stock swings. Revenue missed forecasts at $13.45 billion versus the expected $14.52 billion, but strong performance in key divisions offset the shortfall.

The Goldman Sachs Group, Inc., GS

Trading Revenue Hits All-Time High

Equity trading posted a record $4.31 billion in revenue, up from $3.45 billion the previous year. Fixed income, currencies, and commodities trading grew 12.5% to $3.11 billion as traders navigated turbulent markets.

The bank’s trading teams capitalized on price swings that rattled investors throughout the quarter. Return on equity improved 1% year-over-year, demonstrating better capital efficiency.

Investment banking showed continued strength with fees rising 25% to $2.58 billion. Goldman advised on Electronic Arts’ $56.5 billion buyout and Alphabet’s $32 billion Wiz acquisition, two of 2025’s largest transactions.

The bank maintained its position as top global M&A advisor for 2025, working on $1.48 trillion in deal volume. Total fees from advisory work reached $4.6 billion for the year.

M&A Market Powers Higher

Global M&A activity surged to $5.1 trillion in 2025, up 42% from the prior year. Lower interest rates, regulatory shifts under President Trump, and corporate cash stockpiles fueled the dealmaking boom.

Goldman led the Medline IPO, the biggest global listing of 2025. The IPO market rebounded despite fall disruptions from a government shutdown that delayed some offerings.

Investment banks are competing for expected 2026 listings from SpaceX, OpenAI, and Anthropic. Goldman expects the dealmaking momentum to continue as AI investments drive tech sector consolidation.

Wealth Business Breaks Records

Management fees reached an all-time quarterly high of $3.09 billion. The bank has prioritized wealth management to generate steadier income streams compared to volatile trading operations.

Assets under supervision grew to $3.61 trillion from $3.14 trillion a year earlier. Goldman acquired Innovator Capital Management for $2 billion in December to expand its ETF offerings.

The Apple credit card exit represents another retreat from consumer banking. JPMorgan Chase took over the partnership, with Goldman booking a 46-cent per share gain from the transaction.

The bank released $2.48 billion from credit card loss reserves, with Morningstar estimating an additional $145 million benefit. The move comes as other lenders worry about President Trump’s proposed 10% credit card interest rate cap.

Goldman raised its quarterly dividend to $4.50 per share. CEO David Solomon expects client engagement to accelerate in 2026, creating what he called “a flywheel of activity” across the firm.

Shares climbed more than 50% in 2025. Wall Street analysts maintain a Moderate Buy rating with an average price target of $855.67.