Goldman Sachs Profit Climbs Amid Strong Dealmaking and Trading Results
📈 Goldman Sachs Q4 2025 Earnings Briefing
Goldman Sachs reported Q4 2025 **Earnings Per Share (EPS) of $14.01**, significantly surpassing the analyst consensus estimate of approximately $11.70. This strong bottom-line performance was largely driven by exceptional results in its core Global Banking & Markets (GBM) division.
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Core Business Strength
The Global Banking & Markets division saw its net revenues jump **22%** year-over-year (YoY) to **$10.41 billion** in the quarter. This growth was fueled by two key areas: Investment Banking and Trading.
* **Investment Banking fees** climbed **25%** YoY to **$2.58 billion**, reflecting a notable increase in advisory revenues, which rose **41%** on resurgent deal-making activity. The advisory backlog has reached its highest level in four years.
* **Equities Trading revenue** hit an all-time Wall Street record for any bank, rising **25%** YoY to **$4.31 billion**.
* **Fixed Income, Currency, and Commodities (FICC) trading** revenues also saw a solid increase of **12%** YoY, reaching **$3.11 billion**.
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Strategic Financials and Outlook
Despite the strong profit beat, the firm's total net revenue for the quarter was **$13.45 billion**, a **3%** YoY decline that missed some top-line forecasts. This was primarily attributed to a one-time **$2.26 billion** markdown associated with the planned transfer of the Apple Card loan portfolio.
This consumer exit resulted in a positive net impact on earnings, driven by a **$2.48 billion** reserve reduction for credit losses related to the transferred loans. The firm delivered a quarterly **Return on Equity (ROE) of 16.0%**.
The firm has raised its quarterly dividend to **$4.50 per share**, underlining confidence in its capital position and sustained earnings power. Furthermore, Goldman Sachs has increased its medium-term pre-tax margin target for the Asset & Wealth Management division to **30%**, up from the mid-twenties. Assets Under Supervision reached a new record of **$3.6 trillion**.