- Goldman Sachs’ FICC sales and trading revenue was $3.47 billion, below the estimated $3.72 billion.
- Equities sales and trading revenue exceeded expectations at $6.44 billion, compared to the estimate of $5.09 billion.
- Net revenue increased to $18.68 billion.
- Revenue from Global Banking & Markets reached $13.46 billion, surpassing the estimate of $11.8 billion.
- Investment banking revenue was $3.23 billion, above the anticipated $2.86 billion.
- Advisory revenue was $1.65 billion, higher than the estimated $1.4 billion, due to increased mergers and acquisitions.
- Equity underwriting revenue was $666 million, exceeding the estimate of $645.5 million, driven by IPOs and secondary offerings.
- Debt underwriting revenue was $904 million, higher than the estimated $824.4 million.
- Earnings per share (EPS) were reported at $17.01.
- Net interest income was $3.77 billion, compared to the estimate of $3.61 billion.
- Total deposits amounted to $568 billion.
- Provision for credit losses was $368 million.
- Total operating expenses were $11.31 billion, higher than the estimate of $10.95 billion, due to increased transaction-based and compensation expenses.
- Compensation expenses totaled $5.12 billion, slightly above the estimated $5.06 billion.
- Annualized Return on Equity (ROE) was 18.7%, compared to an estimate of 14%.
- Return on tangible equity was reported at 20.5%.
- The standardized Common Equity Tier 1 (CET1) ratio was 12.4%, a bit below the estimated 12.6%.
- Book value per share was calculated at $372.64.
- Efficiency ratio was 59.4%, significantly better than the estimated 65.5%.
- Net charge-offs were $154 million, lower than the expected $282.8 million.
- Assets under management were $4.10 trillion, compared to the estimate of $4.14 trillion.
- Total AUS net inflows were $83 billion.
- Loans totaled $276 billion, above the estimate of $264.55 billion.
- CEO David Solomon stated that despite current global challenges, the company is well-positioned to continue delivering for clients.
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Goldman Sachs Group on Smartkarma
Analyst coverage of Goldman Sachs Group on Smartkarma by Ξ±SK Primers highlights Goldman Sachs’ premier global investment banking franchise, maintaining leadership in M&A advisory, equity and debt underwriting, and institutional market making. Their strategic pivot towards higher-margin Asset & Wealth Management is enhancing profitability, with net margins rising from 7.84% in FY23 to 17.25% in 2Q26 driven by capital markets activity and expense management. The analysis points to substantial capital generation and shareholder returns, with a 19.52% 3-year EPS CAGR and an annualized dividend run-rate of $18.00 per share, offering a 2.24% yield.
A look at Goldman Sachs Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Goldman Sachs Group, the long-term outlook seems positive. With a strong score in Growth, the company is positioned well for future expansion and development. Additionally, scoring well in Value and Resilience indicates a solid foundation and the ability to weather market fluctuations. The momentum score also suggests that the company is moving in the right direction.
The Goldman Sachs Group, Inc. is a global investment banking and securities firm offering a range of services to various clients. Specializing in investment banking, trading, asset management, and securities services, the company caters to corporations, financial institutions, governments, and high-net worth individuals. With balanced scores across key factors, Goldman Sachs appears to have a stable outlook for long-term growth and success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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