Goldman Sachs profit surges 78% to record as trading revenue soars

Goldman Sachs Group Inc. reported Q2 net profit of $6.63 billion, up 78% from a year earlier and the highest quarterly profit in the bank's history.

Stock trading revenue surged to $7.42 billion, far exceeding the $5.02 billion consensus estimate compiled by Bloomberg, as market volatility drove client activity across derivatives and cash equities. Fixed-income, currency and commodities revenue reached $4.59 billion, also topping the $3.76 billion forecast.

Investment banking fees jumped 55% to $3.4 billion, fueled by a recovery in equity underwriting, which more than doubled to $985 million from $428 million a year earlier. Debt underwriting rose 75% to $1.03 billion, while M&A advisory fees gained 17% to $1.38 billion. Management said the investment banking backlog increased from both the first quarter and the end of 2025, signaling further revenue accumulation ahead.

Metric	Actual	Consensus	Beat/Miss
Revenue	$20.34B	—	+39% YoY
EPS	$20.98	—	+92% YoY
Stock trading rev.	$7.42B	$5.02B	+48%
FICC revenue	$4.59B	$3.76B	+22%

The Global Banking & Markets division generated $15.52 billion in net revenue, up 53% from a year ago and accounting for more than three-quarters of total revenue. Equities intermediation revenue hit $4.16 billion, while equities financing surged 91% to $3.26 billion, driven by expansion in prime brokerage.

Asset & Wealth Management posted $4.6 billion in revenue, up 20%, as assets under supervision reached a record $4.04 trillion, up 23% year over year. The division recorded $230 billion in net inflows during the quarter, including $31 billion related to the Innovator Capital Management acquisition. Private equity investments generated $441 million in revenue, more than tripling from a year earlier.

Platform Solutions was the lone weak spot, with revenue plunging 64% to $221 million, reflecting net write-downs from the Apple Card loan portfolio held for sale. The division's contraction marks the ongoing cost of Goldman's retreat from consumer lending.

The bank set aside just $102 million for credit losses, down 73% from a year ago, as consumer credit exposure shrank following the sale of consumer loan portfolios. The efficiency ratio improved to 58.8% from 62% in the same period last year, as revenue growth outpaced expense increases.

Goldman returned $5.36 billion to common shareholders in the quarter, including $4 billion in share buybacks at an average price of $984.57 and $1.36 billion in dividends. The board raised the quarterly dividend to $5.00 per share from $4.50. The common equity Tier 1 ratio stood at 12.9%, up from 12.5% at the end of the first quarter.

The record profit underscores Goldman's dominant position in trading and investment banking as market volatility and a rebound in capital markets activity boost Wall Street's top firms. Investors will watch whether the bank can sustain this momentum into the second half, with the investment banking backlog suggesting further fee growth ahead.

This article is for informational purposes only and does not constitute investment advice.