The Goldman Sachs Group (GS) Q1 2026 earnings summary

Executive summary

• Net revenues reached $17.23 billion in Q1 2026, up 14% year-over-year and 28% sequentially, with net earnings of $5.63 billion and diluted EPS of $17.55, each the second highest in firm history.

• Annualized ROE was 19.8% and ROTE 21.3%, with book value per share up 1% to $361.19.

• Record revenues in Global Banking & Markets, driven by strong investment banking fees and record equities revenues.

• Completed acquisitions of Industry Ventures and Innovator Capital Management, adding $5 billion and $31 billion in assets, respectively.

• Robust asset and wealth management inflows, with record assets under supervision and continued leadership in M&A advisory.

Financial highlights

• Net revenues rose 14% year-over-year to $17.23 billion, with net earnings up 19% and diluted EPS up 24% year-over-year.

• Global Banking & Markets delivered record quarterly revenues of $12.74 billion, up 19% year-over-year, and ROE over 22%.

• Asset & Wealth Management net revenues were $4.08 billion, up 10% year-over-year, with management fees up 14% and pre-tax margin at 23%.

• Platform Solutions net revenues declined 33% year-over-year to $411 million, mainly due to the Apple Card loan portfolio transition.

• Operating expenses totaled $10.43 billion, up 14% year-over-year; efficiency ratio at 60.5%, compensation ratio at 32%.

Outlook and guidance

• Expectation for continued robust M&A and capital markets activity, with a strong backlog and resilient equity markets.

• IPO activity slowed in March due to geopolitical uncertainty but is expected to rebound if market resilience continues.

• Asset and Wealth Management expected to return to high double-digit growth in 2027 as deposit competition moderates.

• Continued focus on driving towards a 60% efficiency ratio, with ongoing investments in cloud and AI to unlock future efficiencies.

• Management remains confident in business positioning despite volatile and complex geopolitical and market conditions, emphasizing disciplined risk management.