Michael M. Santiago
Goldman Sachs (NYSE:GS) Q2 earnings and revenue easily beat the average analyst estimates on Wednesday on the back of a strong increase in net interest income and solid gains in investment banking fees and equities revenue.
Q2 GAAP EPS of $10.91, topping the average analyst estimate of $9.63, rose from $14.12 in Q1 and $ in last year’s Q2.
Total revenue of $14.6B, beating the $13.6B consensus, fell from $15.1B in the prior quarter and climbed from $12.7B a year ago.
“Our strong results for the quarter reflected healthy client activity levels across our businesses, our differentiated franchise positions and the talent and commitment of our people,” said Chairman and CEO David Solomon. “At this time, the economy and markets are generally responding positively to the evolving policy environment. But as developments rarely unfold in a straight line, we remain very focused on risk management.”
Goldman Sachs (NYSE:GS) stock rose 1.4% in Wednesday premarket trading.
Q2 net interest income of $3.10B, exceeding the Visible Alpha consensus of $2.79B, climbed from $2.90B in Q1 and $1.99B in last year’s Q2.
Provision for credit losses of $384M, smaller than the Visible Alpha consensus of $408M, increased from $287M in the previous quarter and $282M a year ago.
Total operating expenses of $9.24B rose from $9.13B in Q1 and $8.53B in last year’s Q2.
Annualized return on average common shareholders’ equity was 12.8%, down 4.1 percentage points from the prior quarter and up 1.9pp from the year-ago quarter.
Loans of $217B at June 30, 2025, grew from $210B at March 31, 2025. Deposits of $466B dropped from $471B at the end of Q1.
Headcount totaled 45,900, down from 46,600 at the end of Q1.
Global Banking & Market net revenue of $10.1B fell 5% Q/Q and increased 24% Y/Y. Investment banking fees of $2.19B jumped 14% Q/Q and 26% Y/Y. FICC net revenue of $3.47B dropped 21% Q/Q and increased 9% Y/Y. Equities revenue of $4.30B rose 3% Q/Q and 36% Y/Y
Asset & Wealth Management net revenue of $3.78B increased 3% Q/Q and fell 3% Y/Y; management and other fees totaled $2.81B, up 4% Q/Q and 11% Y/Y.
Platform Solutions net revenue of $685M edged up 1% Q/Q and 2% Y/Y.
Conference call at 9:30 AM ET.
Earlier, Goldman Sachs GAAP EPS of $10.91 beats by $1.28, revenue of $14.58B beats by $1B