Goldman Sachs reported fourth-quarter profit that exceeded expectations, driven by strong equities trading and asset and wealth management.
The bank announced earnings of $14.01 per share, compared with a $11.67 per share estimate from LSEG analysts.
Revenue reached $13.45 billion, slightly below the $13.79 billion forecast.
Profit rose 12% from a year earlier to $4.62 billion, reflecting gains across its capital markets businesses.
Revenue Impact from Apple Card Exit
Goldman’s revenue decline was largely due to the sale of its Apple Card loan portfolio to JPMorgan Chase and the early termination of its Apple contract.
Despite this, the results indicate that Goldman’s Wall Street-focused business model remains robust amid market volatility.
CEO David Solomon highlighted high client engagement and optimism for continued growth in 2026.
“We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026, activating a flywheel of activity across our entire firm,” Solomon said.
The bank said it can exceed mid-teens return targets and maintain a roughly 60% efficiency ratio, supported by the capital markets rebound and deregulation trends.
Strong Equities and Fixed Income Performance
Goldman Sachs‘ equities trading revenue jumped 25% year-on-year to $4.31 billion, surpassing expectations by around $610 million.
The growth stemmed from financing trades and derivatives sales to hedge funds and institutional investors.
Fixed income trading rose 12% to $3.11 billion, outperforming forecasts by $180 million, driven by interest rate and commodity-related trades.
Investment banking fees increased 25% to $2.58 billion, fueled by mergers advisory and debt underwriting, while deal backlog also expanded.
The asset and wealth management division generated $4.72 billion, roughly flat from a year earlier but exceeding estimates by $270 million.
Rising fees from assets under management offset weaker gains from equities and private investments.
Platform Solutions Lag
Goldman’s smallest business, platform solutions, posted a $1.68 billion revenue loss, compared with a $592 million gain in the previous year.
The decline was primarily due to the Apple Card exit.
Shares of Goldman Sachs rose more than 1.5% in morning trading following the earnings announcement.
The results reinforce the bank’s resilience and highlight its ability to leverage capital markets strength in the current economic environment.
