Goldman Sachs Group reported first-quarter net revenues of $17.23 billion and net earnings of $5.63 billion, translating to earnings per share of $17.55 — well above the $14.30 consensus estimate — and a return on equity of 19.8%. The results underscore Goldman's unique ability to extract value from market chaos.
CEO David Solomon told analysts that "markets requiring sophisticated risk management create opportunities for Goldman Sachs." He cautioned however that sustained geopolitical uncertainty could dampen M&A activity in coming quarters as CFOs delay strategic decisions.
Equities Desk Posts Historic Quarter
Goldman's equities trading desk recorded its best quarter in firm history, generating $4.2 billion in revenue as clients scrambled to hedge equity exposures. Energy-linked structured products drove exceptional activity. Investment banking segment posted $2.4 billion in fees, up 48% year-over-year.
The fixed income, currencies, and commodities trading desk generated $4.07 billion — respectable in absolute terms but lagging the outsized gains at JPMorgan. Goldman's FICC book is more exposed to credit-sensitive assets, which underperformed during the energy shock.
Asset Management Builds Momentum
Goldman's Asset and Wealth Management division reported record assets under supervision of $3.1 trillion, up $180 billion from year-end 2025. Management fees hit a record $2.6 billion for the quarter.
Shares rose 2.4% on the results. The stock trades at 1.3x book value, which analysts at Wells Fargo called "undemanding" given the demonstrated earnings power. Goldman's CET1 ratio of 14.9% gives it capacity for buybacks and dividends.