The Goldman Sachs Group, Inc.

Goldman Sachs reported second-quarter net revenues of $20.3 billion, record EPS of $20.98, ROE of 23.5%, and ROTE of 25.5%. Global Banking & Markets revenue was a record $15.5 billion. Advisory revenue was $1.4 billion, up 17% year over year; equity underwriting was $985 million, up 130%; debt underwriting was $1 billion, up 75%; FICC revenue was $4.6 billion, up 32%; and equities revenue was a record $7.4 billion, with equities intermediation up 60% year over year and equity financing up 91%. Asset and Wealth Management revenue was $4.6 billion, up 20% year over year; management and other fees were $3.4 billion, up 20%; and total assets under supervision ended at a record $4 trillion. Operating expenses were $11.7 billion for the quarter, and the provision for credit losses was $102 million. CET1 ratio was 12.9% under the standardized approach, and the firm repurchased $4 billion of common stock. Looking ahead, management said full-year alternative fundraising is now expected to exceed $125 billion, Platform Solutions quarterly revenue should remain broadly consistent with Q2, and the full-year effective tax rate is expected to be approximately 20%.

David Solomon framed the quarter as evidence of broad franchise momentum and said the firm is benefiting from strategic activity, AI infrastructure build-out, and stronger connectivity across businesses. He emphasized that Goldman is seeing a very strong environment for client activity, a record backlog, and a multi-year opportunity in financing, advisory, capital markets, and wealth management. His tone was confident but balanced, repeatedly noting that the cycle will not move in a straight line and that risk management remains important.

Denis Coleman highlighted the hard numbers behind the record quarter, including $20.3 billion of revenue, $20.98 EPS, and a 23.5% ROE. He pointed to operating leverage, with first-half efficiency of 58.8%, comp expense growth of 30% versus revenue growth of about 40%, and non-compensation expenses of $5.6 billion in the quarter. He also cited a CET1 ratio of 12.9%, a 3.4% stress capital buffer, $4 billion of buybacks, the dividend increase to $5 per share, and a provision for credit losses of $102 million, while reiterating a full-year tax rate of about 20%.

Analysts focused on the sustainability of the strong equities results, with questions about wallet share gains, client concentration, and whether Asia or a few large clients were driving the outperformance. Management said the equities business was broad-based across cash, derivatives, and financing, and credited multi-year investments, especially in Asia, as well as favorable market conditions and improved client engagement. Questions also centered on capital allocation, AI capex durability, SLR constraints, and prime finance demand; management said demand for financing currently exceeds what the firm is willing to provide and that it is managing multiple binding capital constraints dynamically.