Goldman Sachs (GS) Stock: Q4 Earnings Jump on Record Trading Revenue

TLDR

• Goldman Sachs reported Q4 profit of $4.38 billion, up from $3.92 billion a year earlier, with earnings per share of $14.01 beating Wall Street estimates of $11.70.
• Equity trading revenue hit a record $4.31 billion while fixed income trading climbed 12.5% to $3.11 billion as traders capitalized on market volatility.
• Investment banking fees rose 25% to $2.58 billion, with Goldman securing the top spot for global M&A advisory with $1.48 trillion in deal volume.
• The bank exited its credit card partnership with Apple, adding 46 cents per share to earnings and releasing $2.48 billion from loan loss reserves.
• Goldman increased its quarterly dividend to $4.50 per share and saw assets under supervision grow to $3.61 trillion from $3.14 trillion a year ago.

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Goldman Sachs delivered strong fourth-quarter results with profit jumping to $4.38 billion from $3.92 billion a year earlier. Earnings per share came in at $14.01, crushing analyst estimates of $11.70.

The beat comes as traders took advantage of market swings tied to Federal Reserve interest rate speculation and AI company valuations. Revenue, however, missed expectations at $13.45 billion versus the $14.52 billion analysts projected.

The Goldman Sachs Group, Inc., GS

Equity trading stole the show with a record $4.31 billion in revenue, up from $3.45 billion in Q4 2024. Fixed income, currencies, and commodities trading wasn’t far behind, climbing 12.5% to $3.11 billion.

The bank’s traders capitalized on volatility in a market that saw wild swings throughout the quarter. Return on equity ticked up 1% year-over-year, showing improved profitability.

Investment Banking Comeback Continues

Goldman’s investment banking division saw fees rise 25% to $2.58 billion compared to the previous year. The bank advised on some of the year’s biggest deals, including Electronic Arts’ $56.5 billion leveraged buyout and Alphabet’s $32 billion acquisition of Wiz.

Those blockbuster transactions helped Goldman maintain its crown as the top global M&A advisor in 2025. The bank advised on $1.48 trillion in total deal volume and collected $4.6 billion in fees.

Global M&A volumes reached $5.1 trillion in 2025, up 42% from 2024. President Trump’s friendlier regulatory stance, lower interest rates, and excess corporate cash drove companies to pursue more deals.

The bank expects this momentum to carry into 2026 as large AI investments fuel more tech consolidation. Goldman served as lead underwriter for Medline’s IPO, the largest global listing of 2025.

The IPO market showed signs of life in recent months despite government shutdown turbulence in the fall. Investment banks like Goldman are positioning themselves for potential 2026 listings from SpaceX, OpenAI, and Anthropic.

Wealth Management Hits Record

Management fees reached an all-time high of $3.09 billion for the quarter. Goldman has doubled down on wealth management to generate more predictable income compared to the ups and downs of trading and dealmaking.

Assets under supervision grew to $3.61 trillion from $3.14 trillion a year earlier. The bank acquired Innovator Capital Management, an active ETF provider, for $2 billion last month to expand this business line.

The Apple card exit marked another step away from Goldman’s failed consumer banking push. The bank struck a deal with JPMorgan Chase to take over the partnership.

Goldman expected the exit to boost results by 46 cents per share. The bank released $2.48 billion from reserves previously set aside for potential credit card losses, with Morningstar estimating an additional $145 million gain from the transaction.

CEO David Solomon said the firm sees high client engagement and expects momentum to accelerate in 2026. The bank increased its quarterly dividend to $4.50 per share, up from previous levels.

Analyst Stephen Biggar from Argus Research called the dividend increase “a powerful testament to management’s faith in sustainably higher earnings.” Goldman Sachs shares rose more than 50% in 2025.

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