Goldman Sachs delivered a commanding second-quarter performance, reporting net earnings of $6.63 billion, a staggering 78% increase over the same period last year. Net revenues climbed 39% year-over-year to $20.34 billion, as the firm capitalized on a sharp rebound in investment banking and robust trading activity. Diluted earnings per share (EPS) hit $20.98, nearly doubling the $10.91 reported in 2Q25.
Key Financial Highlights:
- Net Revenue: $20.34 billion (↑ 39% YoY)
- Net Earnings: $6.63 billion (↑ 78% YoY)
- Diluted EPS: $20.98 (↑ 92% YoY)
- Quarterly Dividend: Increased to $5.00 per share
The Global Banking & Markets division was the quarter’s undisputed star, generating $15.52 billion in revenue, up 53% YoY. Within this unit, investment banking fees surged 55% to $3.40 billion, driven by a flurry of debt underwriting and secondary stock offerings. The Equities desk also saw a massive 72% revenue jump, hitting $7.42 billion due to high demand for derivatives and prime financing.
In contrast, Platform Solutions remained the primary laggard. Revenues for the segment plummeted 64% to $221 million, largely due to net markdowns related to the Apple Card loan portfolio. Meanwhile, Asset & Wealth Management posted a solid 20% revenue increase to $4.60 billion, as Assets Under Supervision (AUS) reached a record $4.04 trillion.
While core operational growth was the primary driver, earnings were bolstered by an efficiency ratio that improved to 58.8% for the first half of the year. However, “quality” of earnings was slightly impacted by tax benefits from employee share-based awards, which added approximately $3.15 to EPS for the first half of 2026.
The firm’s balance sheet remains robust, with $555 billion in average global core liquid assets. Goldman demonstrated its confidence by returning $5.36 billion to shareholders through buybacks and dividends during the quarter.
Management expressed optimism regarding the deal pipeline, noting that the Investment banking fees backlog increased compared to the previous quarter. While the firm cautioned that geopolitical tensions and shifts in trade policy could impact future results, the current trajectory suggests a sustained recovery in high-margin advisory and underwriting services.
David Solomon, Chairman and CEO of Goldman Sachs, said, “Our record performance this quarter reflects the strength of our global franchise, the depth of our relationships, and our ability to harness the power of One Goldman Sachs. Momentum has accelerated throughout our businesses. Clients are turning to us to lead their most strategic and consequential transactions, which are often the genesis of activity across the franchise. We are relentlessly driving our long-term growth strategy across Global Banking & Markets and Asset & Wealth Management, and given what we see in our pipelines, we expect this flywheel of activity to continue.”
