Goldman Sachs shares hit record as earnings beat estimates

Goldman Sachs shares rose 7.5% on Tuesday after the bank reported second-quarter revenue and profit well above analysts’ expectations, driven by stronger investment banking, equities trading and asset management results. Revenue increased 39.5% from a year earlier to $20.34 billion, compared with the $16.13 billion consensus compiled by LSEG, while earnings per share rose 92% to $20.98 versus the $14.48 LSEG estimate.

The stock set an intraday record near $1,136, according to CNBC, and would need to finish above its prior closing high of $1,106.37, set on June 22, to establish a new record close. CNBC’s Investing Club said after the results that it raised its Goldman Sachs price target to $1,200 from $1,050 while keeping a hold-equivalent rating.

The quarter reflected a broad recovery in Wall Street activity. CNBC reported that Goldman co-led SpaceX’s initial public offering, helped manage Alphabet’s $85 billion equity raise and advised on NextEra’s $67 billion merger with Dominion Energy during the period. The bank also benefited from volatility in stocks, oil and bonds, conditions that can increase client activity across trading desks.

Banking and markets drive the result

Goldman’s global banking and markets division generated $15.52 billion in revenue, up 53% from a year earlier and 22% from the previous quarter, according to CNBC. That was about $3.8 billion above consensus and accounted for most of the company’s revenue beat.

Investment banking revenue was $3.4 billion, up 55% year on year and ahead of the $2.8 billion consensus estimate. CNBC said the line included fees from SpaceX’s IPO and $25 billion bond sale, as well as Goldman’s role in Alphabet’s equity transaction. Equity underwriting revenue rose 130%, and debt underwriting revenue increased 70%. Advisory revenue, which is tied largely to mergers and acquisitions, rose nearly 18% but was slightly below estimates.

Equities revenue climbed 72% to $7.42 billion, compared with expectations of $5.05 billion, according to CNBC. The increase came in part from higher activity in equities intermediation, where Goldman facilitates large stock and derivatives trades for institutional clients, and from equity financing, where the bank lends cash and securities to hedge funds.

Fixed income, currency and commodities revenue rose 32% to $4.6 billion, above the $3.7 billion consensus. The improvement followed a weaker first-quarter performance in that business, CNBC reported.

Backlog and wealth management in focus

Chief executive David Solomon told analysts that Goldman’s investment banking backlog rose to its highest level in five years and its second-highest level on record. He said the advisory backlog reached a record and reflected broad client engagement.

Solomon also linked stronger merger activity to a more permissive regulatory posture under the Trump administration compared with the Biden administration. “CEOs are dreaming and thinking about really large, structurally scale-enhancing opportunities,” he said on the earnings call, according to CNBC.

The bank’s asset and wealth management unit reported $4.6 billion in revenue, above the $4.31 billion consensus and up 20% from a year earlier. Assets under supervision reached a record $4.04 trillion, increasing by $391 billion during the quarter, CNBC reported. Goldman also secured $70 billion in combined retirement assets from Verizon and Lockheed Martin early in the third quarter.

Solomon said Goldman has received nearly 900 referrals from investment banking to wealth management since the start of 2025. The bank has been investing in wealth management as a steadier revenue source alongside businesses such as trading and underwriting, whose fees tend to depend more on transaction cycles.

Goldman’s smaller platform solutions segment produced $221 million in revenue, down 64% from a year earlier. CNBC attributed the decline chiefly to Goldman’s sale of its Apple credit card business to JPMorgan. Chief financial officer Denis Coleman said on the call that revenue in the segment should be broadly consistent with the second quarter for the rest of the year.

AI pipeline brings opportunity and risk

Artificial intelligence-related activity also featured in Goldman’s outlook. CNBC reported that OpenAI and Anthropic have filed confidentially with U.S. regulators, with Goldman among banks leading the offerings, although timing remains uncertain. Reuters reported Tuesday that data center operator Switch hired Goldman as a lead underwriter for a planned IPO.

Asked about the risk of a slowdown in AI investment, Solomon said Goldman is larger and more diversified than during the dot-com period. He said technology investment cycles can “ebb and flow” and that the firm is considering that possibility as it manages the business.

Coleman said Goldman is applying AI internally, particularly in software engineering, while adding that adoption remains early. He said the current emphasis is on improving employee productivity and client service rather than a structural overhaul of staffing.

This story draws on original reporting from CNBC.