Goldman Sachs signals 33% dividend increase and record $3.3T assets under supervision as capital flexibility grows

Earnings Call Insights: The Goldman Sachs Group, Inc. (GS) Q2 2025

Management View

CEO David M. Solomon reported, “We delivered a strong performance in the second quarter, generating net revenues of $14.6 billion, earnings per share of $10.91 and an ROE of 12.8%, resulting in an ROE of 14.8% for the first half of the year.” Solomon emphasized the firm’s leading position in M&A, noting, “announced M&A volumes for the year-to-date are 30% higher year-over-year and 15% greater than the comparable 5-year average.”
Solomon highlighted record revenues in the firm’s financing businesses, stating, “both our financing businesses hit a revenue record as we continue to deploy resources to grow FICC financing and bolster our leading position in equities financing.” He also remarked on the expansion in client relationships: “we now rank in the top 3 with 125 of the top 150 clients globally, up from 77 in 2019.”
Solomon pointed to Asset & Wealth Management momentum, mentioning, “Wealth management client assets rose to a record $1.7 trillion,” and “our assets under supervision rose to a new record of $3.3 trillion, representing our 30th consecutive quarter of long-term fee-based net inflows.”
Regarding technology, Solomon stated, “Last month, we rolled out our natural language GS AI Assistant to the entire firm, the first generative AI-powered tool to reach the scale,” and described new collaboration with Cognition Labs and pilot use of Devin, “an autonomous generative AI agent designed to transform the way we build, maintain and develop software.”
Solomon announced, “Our Board approved a 33% increase in our quarterly dividend to $4 a share, which underscores our confidence in the durability of our franchise.”
CFO Denis P. Coleman said, “In the second quarter, we generated net revenues of $14.6 billion, earnings per share of $10.91 and an ROE of 12.8%. We provide details on selected items in the bottom table, which in total reduced our EPS by $0.33 and our ROE by 40 basis points.”

Outlook

Management remains optimistic on investment banking, with Solomon stating, “we are optimistic on the overall investment banking outlook, and we are incredibly well positioned to assist clients in executing on their strategic ambitions.”
Coleman noted, “We expect to make further progress on our target of $1 billion in annual incentive fees over the medium term with fees ramping up more materially in 2026 and 2027 as we continue to deploy and harvest funds.”
Solomon cited, “This increased capital flexibility will allow us to prioritize deploying resources to support our client needs and further grow our world-class businesses.”

Financial Results

Global Banking and Markets produced revenues of $10.1 billion in the quarter with an ROE for the first half of nearly 18%. Advisory revenues of $1.2 billion rose 71% versus a year ago. Equity underwriting revenues of $428 million were flat year-over-year, while debt underwriting revenues of $589 million fell 5%.
FICC net revenues were $3.5 billion, up 9% year-over-year. Record FICC financing revenues of $1 billion were driven by strong performance in mortgages and structured lending. Equities net revenues were a record $4.3 billion. Equities intermediation revenues of $2.6 billion rose 45% year-over-year.
Asset & Wealth Management revenues were $3.8 billion. Management and other fees were up 11% year-over-year to $2.8 billion. Private banking and lending revenues were $789 million, up 12% year-over-year.
Total assets under supervision ended the quarter at a record $3.3 trillion, up sequentially on $115 billion of market appreciation and $17 billion of long-term net inflows in alternatives and equity.
Operating expenses were $9.2 billion. The effective tax rate for the first half of 2025 was 20.2%. The company returned $4 billion to shareholders, including $957 million in dividends and $3 billion in stock repurchases.

Q&A

Glenn Paul Schorr, Evercore ISI: Asked about deployment of excess capital and organic allocation. Solomon responded that deploying capital toward the client franchise to produce accretive returns remains first priority, with opportunities for deployment arising in M&A and financing.
Schorr: Queried on the “challenging harvesting environment.” Coleman said, “We have both of those things happening at the same time… it has not been a robust environment for the harvesting, particularly for private equity type portfolio assets.”
Ebrahim Huseini Poonawala, BofA: Asked about CET1 ratio target and SCB implications. Coleman answered, “We still expect to run with approximately 50 to 100 basis point buffer versus the new and applicable regulatory minimum.”
Betsy Lynn Graseck, Morgan Stanley: Asked about dividend sizing and drivers of the increase. Solomon said, “the most important thing is to be in a position to consistently raise the dividend and create a steady increased pattern of dividend increase.”
Michael Lawrence Mayo, Wells Fargo: Inquired on M&A outlook. Solomon replied, “announced M&A is up 30% year-over-year… it’s higher — now 50% higher than the 5-year average.”
Steven Joseph Chubak, Wolfe Research: Asked about alternative investments strategy. Solomon stated, “we have no plans to change our strategy… we’ve pivoted away from that strategy.”

Sentiment Analysis

Analyst tone was largely constructive but probing, with specific focus on capital deployment, dividend strategy, and harvesting environment, seeking clarity on near-term and structural shifts.
Management maintained a confident, forward-looking tone in prepared remarks, with Solomon stating, “I feel very confident about the forward trajectory of Goldman Sachs.”
Compared to the previous quarter, analyst questions shifted from operational cost controls to capital deployment and strategic growth, while management sentiment remained positive but more focused on tangible capital flexibility and execution.

Quarter-over-Quarter Comparison

Net revenues declined from $15.1 billion in Q1 to $14.6 billion in Q2, and EPS decreased from $14.12 to $10.91.
Dividend increased 33% to $4 per share, compared to the previous quarter’s $3 per share.
Advisory revenues rose significantly from $792 million in Q1 to $1.2 billion in Q2, while FICC net revenues declined from $4.4 billion to $3.5 billion.
There was a continued increase in assets under supervision, from $3.2 trillion to $3.3 trillion.
Analyst focus shifted from balance sheet optimization and efficiency to capital deployment, dividend growth, and M&A pipeline.
Management maintained a confident tone, reflecting greater capital flexibility and progress on strategic objectives.

Risks and Concerns

Solomon highlighted geopolitical concerns and trade uncertainties, stating, “Geopolitical concerns have intensified in many regions, most notably in the Middle East. Number of trade agreements have yet to materialize and that the ultimate impact on growth from higher tariffs is yet unknown.”
Coleman noted a “more challenging harvesting environment” for private equity-type portfolio assets and warned that results in the second half of 2025 may be more muted relative to medium-term expectations.
Management reiterated a focus on risk discipline and the need to adapt to an uncertain regulatory environment, with Coleman emphasizing, “the environment remains fluid, and we’ll have to understand exactly where we land on what our minimum requirements are and when they take effect.”

Final Takeaway

Goldman Sachs delivered a strong second quarter, highlighted by record assets under supervision, robust advisory revenues, and a significant 33% dividend increase. Management pointed to ongoing momentum in investment banking and continued commitment to deploying capital for client growth, while acknowledging uncertainties in the regulatory and geopolitical landscape. The firm emphasized its focus on durable revenue streams, efficiency through AI initiatives, and disciplined risk management as it leverages enhanced capital flexibility to support clients and shareholders.

Read the full Earnings Call Transcript