Goldman Sachs (NYSE: GS) delivered record quarterly revenue as stronger equity trading, underwriting activity and client financing lifted Global Banking & Markets earnings. Asset and wealth management also benefited from higher fee-bearing assets and private-equity gains. The performance produced a sharp improvement in returns, although elevated compensation, transaction costs and losses within Platform Solutions remain important counterweights.

Key Highlights

  • Q2 2026 net revenue increased 39% year on year to a record USD 20.34 billion.
  • Diluted EPS rose 92% to USD 20.98, while annualised ROE reached 23.5%.
  • Global Banking & Markets revenue increased 53%, led by record equities revenue.
  • Assets under supervision reached USD 4.04 trillion following USD 230 billion of quarterly net inflows.
  • Platform Solutions revenue fell 64% due principally to Apple Card portfolio markdowns.

Record Goldman Sachs Q2 2026 Revenue Reflects Stronger Capital Markets

Goldman Sachs (NYSE: GS) reported its strongest quarterly revenue performance on record, supported by a broad revival in capital-markets activity and increased client demand for trading and financing services.

Net revenue rose 39% year on year and 18% sequentially to USD 20.34 billion. Net earnings increased 78% to USD 6.63 billion, while diluted EPS advanced to USD 20.98 from USD 10.91 a year earlier. Annualised return on common equity reached 23.5%, compared with 12.8% in Q2 2025.

The earnings improvement was not driven solely by revenue growth. Credit costs also declined materially. Provision for credit losses fell to USD 102 million from USD 384 million in the prior-year quarter, reflecting lower consumer credit provisioning after the firm transferred its credit-card portfolio to held-for-sale status.

Pre-tax earnings consequently increased 73% to USD 8.56 billion. The efficiency ratio improved to 57.4% for the quarter, demonstrating substantial operating leverage despite a large increase in variable costs.

Equities Trading and Underwriting Drive Global Banking & Markets

Global Banking & Markets remained the principal earnings engine. Segment revenue increased 53% year on year to a record USD 15.52 billion, representing more than three-quarters of group revenue. Pre-tax earnings rose 84% to USD 7.50 billion, while the segment’s return on average common equity reached 27.5%.

Equities produced the most significant contribution. Revenue increased 72% to a record USD 7.42 billion. Equities intermediation rose 60% as derivatives and cash-product activity strengthened, while equities financing revenue increased 91%, driven primarily by prime financing.

This performance indicates that the quarter benefited from both transactional market activity and recurring financing relationships. Financing revenue can provide greater continuity than trading income, although it remains sensitive to hedge-fund positioning, market liquidity and risk appetite.

Fixed income, currencies and commodities revenue increased 32% to USD 4.59 billion. Interest-rate products, commodities, mortgages and structured lending offset weaker credit-product revenue. Net interest income across Goldman Sachs (NYSE: GS) rose 27% to USD 3.95 billion as interest-earning assets expanded and funding costs declined.

Investment banking fees increased 55% to USD 3.40 billion. Equity underwriting revenue more than doubled, debt underwriting advanced 75%, and advisory revenue rose 17%. The firm also reported a sequential increase in its investment-banking backlog, led by advisory mandates, although debt-underwriting backlog declined.

Asset and Wealth Management Adds Fee-Based Revenue

Asset and Wealth Management revenue increased 20% to USD 4.60 billion. Management and other fees rose 20% to a record USD 3.36 billion, supported by higher average assets under supervision. Investment revenue increased more than threefold to USD 441 million, primarily due to gains from private-equity investments.

Assets under supervision reached a record USD 4.04 trillion, up from USD 3.65 trillion at the end of the first quarter and USD 3.29 trillion one year earlier. Quarterly net inflows totalled USD 230 billion, including USD 91 billion into long-term assets and USD 139 billion into liquidity products. Market appreciation contributed an additional USD 161 billion.

Long-term inflows were spread across alternative investments, equities and fixed income. Alternative assets under supervision reached USD 459 billion, while third-party alternatives fundraising totalled a record USD 59 billion.

The scale of the asset base improves the firm’s capacity to generate recurring management fees, partly reducing reliance on market-making and underwriting cycles. However, private banking and lending revenue declined 13% year on year as lower margins on Marcus deposits offset higher average deposit balances.

Higher Expenses Accompany Stronger Operating Performance

Operating expenses increased 26% to USD 11.67 billion. Compensation and benefits rose 30% to USD 6.10 billion, reflecting stronger revenue and earnings. Transaction-based expenses increased 56% to USD 3.05 billion as trading and capital-markets volumes expanded.

The cost increase remains closely connected to business activity rather than broad fixed-cost expansion. Headcount fell 2% sequentially to 46,200, while professional fees declined 15% year on year.

Nevertheless, the firm’s expense base remains highly sensitive to revenue mix. A weaker trading environment could reduce transaction costs and variable compensation, but fixed technology, regulatory and infrastructure spending would provide less flexibility.

Platform Solutions and Balance-Sheet Expansion Present Risks

Platform Solutions remained the principal weak point. Revenue declined 64% to USD 221 million, while the segment recorded a USD 48 million pre-tax loss. The deterioration primarily reflected markdowns associated with the Apple (NASDAQ: AAPL) Card loan portfolio, which had previously been designated for sale.

Total assets increased to USD 2.13 trillion from USD 2.06 trillion sequentially. Loans rose to USD 261 billion, with approximately 85% of gross loans secured. Net charge-offs were USD 185 million, equivalent to an annualised rate of 0.3%.

Standardised common equity tier-one capital improved to 12.9%, although the supplementary leverage ratio declined to 4.3% from 4.7% as balance-sheet exposures increased. Average daily value-at-risk also rose to USD 120 million from USD 112 million, indicating moderately higher market-risk utilisation.

Goldman Sachs (NYSE: GS) returned USD 5.36 billion to common shareholders through USD 4.00 billion of repurchases and USD 1.36 billion of dividends. The quarterly dividend was raised 11% to USD 5.00 per share. Book value per share increased 1.8% sequentially to USD 367.67.

The quarter therefore combined strong capital-markets execution, expanding fee-based assets and improved profitability. The principal structural questions concern the durability of elevated trading activity, the conversion of the advisory backlog, cost discipline and the completion of the firm’s remaining consumer-platform transition.