GS earnings analysis
What we found in GS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Goldman posted an exceptional Q2, with revenue up 39% YoY to $20.338B and EPS up to $20.98 from $10.91, driven primarily by Equities, investment banking and FICC. Profitability improved materially as the efficiency ratio declined 600 basis points to 57.4%, while Asset & Wealth Management added strong inflows and grew AUS to $4.041T. Offsetting factors are the continued Apple Card wind-down, increased balance-sheet leverage, and potential credit and capital pressure if macroeconomic or geopolitical conditions deteriorate.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS accelerated sharply
- Q2 net revenue was $20.338B, up 39% from $14.583B a year ago and 18% from the implied Q1 level of $17.227B. Diluted EPS of $20.98 nearly doubled from $10.91 YoY and rose 20% from $17.55 in Q1.
- Operating leverage drove margin expansion
- Pre-tax earnings rose to $8.563B from $4.958B, lifting the calculated pre-tax margin to 42.1% from 34.0% YoY and 37.7% in Q1. The efficiency ratio improved to 57.4% from 63.4%, despite operating expenses increasing 26% to $11.673B.
- Markets and investment banking powered growth
- Global Banking & Markets generated $15.520B of revenue, up 53% YoY; Equities climbed 72% to $7.416B, investment-banking fees rose 55% to $3.395B, and FICC increased 32% to $4.592B. Investment-banking backlog increased versus March 2026.
- AUM growth strengthened fee franchise
- Asset & Wealth Management revenue increased 20% to $4.597B, supported by management and other fees of $3.355B (+20%) and investment revenue of $441M versus $137M. AUS reached $4.041T, up from $3.293T a year earlier, with $230B of quarterly net inflows.
- Liquidity buffers improved
- Liquidity remained robust: average GCLA increased to $555.008B from $494.193B in Q1, while the LCR rose to 126% from 123% and NSFR increased to 117% from 115%.
- Capital return remained substantial
- Goldman returned $5.360B to common shareholders in Q2, including $4.000B of repurchases and $1.360B of dividends. The quarterly common dividend will increase to $5.00 per share in Q3 from $4.50.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Apple Card exit continues to pressure Platform
- Platform Solutions revenue fell 64% YoY to $221M and recorded a $48M pre-tax loss, as Apple Card held-for-sale loan markdowns continued. The Apple Card transition is expected to take approximately 24 months from the December 2025 agreement date.
- Macro stress could lift credit costs
- A 100% weighting to management's adverse macro scenario—global recession from Q3 2026 through Q2 2027—would have increased the allowance for credit losses by approximately $0.6B at June 2026. Management cites Middle East conflict, inflation and tariffs as sources of uncertainty.
- Capital requirements and RWA inflation risk
- The firm expects its Method 2 G-SIB surcharge to rise to 4.0% in 2028 from 3.5% in 2026-27; its current estimate based on first-half data is within the 4.5% surcharge range, potentially effective as early as January 2029. Standardized RWAs rose $63.302B from December to $790.640B.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $20.98
- Operating margin
- 42.1%
- Segment
- Global Banking & Markets revenue: $15.520B, +53% YoY (Q1 2026 implied $12.738B; +22% QoQ)
- Segment
- Asset & Wealth Management revenue: $4.597B, +20% YoY (Q1 2026 implied $4.078B; +13% QoQ)
- Segment
- Platform Solutions revenue: $221M, -64% YoY (Q1 2026 implied $411M; -46% QoQ)
What they said about what is next.
No numerical revenue or EPS guidance was provided in the 10-Q. Management expects a 2026 annual effective tax rate of approximately 20% and expects 2026 alternatives fundraising to exceed $125B; it also reiterated medium-term Asset & Wealth Management targets including approximately 17%-19% ROE and approximately 30% pre-tax margin.
The filing reads better than the one before it.
What came before.
- 10-Q · May 1, 2026
- Goldman Sachs reported a strong performance in Q1 2026 with net revenues of $17.23 billion, up 14% from Q1 2025, and diluted EPS of $17.55, increasing from $14.12 from the prior year. Segment results reflected…
- 10-K · February 25, 2026
- Goldman Sachs reported revenue growth to $58,283 million in 2025 (from $53,512 million in 2024) and net earnings of $17,176 million, driving diluted EPS to $51.32. The firm saw a material pickup in net interest income…
- 10-Q · August 1, 2025
- Goldman Sachs reported a strong June quarter: net revenues of $14,583 million and diluted EPS of $10.91, each materially above the year-ago quarter. Net interest income and investment banking led the outperformance,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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