Goldman Sachs surges 39% on record $20.34B quarterly revenue beat

Goldman Sachs reported Q2 revenue of $20.34 billion, up 39% from a year earlier and surpassing Wall Street expectations.

The New York-based bank generated record quarterly earnings per share as equities trading, underwriting activity and asset management fees all posted strong gains, the company said in its earnings release Tuesday.

Profit rose 78% to a quarterly record, according to the company. The underwriting business was boosted by a wave of corporate debt issuance and equity capital markets activity, including SpaceX's landmark deal. Equities trading revenue surged as client activity remained elevated, while asset management fees rose on higher average assets under supervision.

The results mark Goldman Sachs's strongest quarter in its history. The bank's performance underscores a broader revival in Wall Street dealmaking after a prolonged slowdown, with investment banking fees climbing as corporations returned to debt and equity markets.

The earnings beat follows a strong quarter from Jefferies, which reported revenue growth of 35%, and FactSet, which posted a 6.4% revenue increase. The results across the capital markets segment suggest a broad-based recovery in financial services activity.

Goldman Sachs shares rose sharply in early trading Tuesday. The stock had declined 1.7% in the month leading up to the report, compared with a 3.7% average gain for the capital markets segment. Analysts tracked by the company have an average price target of $1,019 on the stock, compared with its current level of $1,057.

The record quarter positions the bank to benefit from continued momentum in capital markets activity. Investors will watch the company's outlook for the second half of 2026, particularly whether the underwriting pipeline remains robust through the third quarter.

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