Goldman’s quarter: mixed internals

Goldman Sachs made more money than Wall Street expected in the first quarter, but investors still sent the stock lower on weak bond-trading results. (goldmansachs.com) (usnews.com) The bank reported $17.23 billion in net revenue and $5.63 billion in net earnings for the quarter ended March 31, 2026, with diluted earnings per share of $17.55. Revenue rose 14% from a year earlier, and annualized return on common equity reached 19.8%. (goldmansachs.com 1) (goldmansachs.com 2) The strongest business lines were mergers and acquisitions advice and stock trading. Investment banking fees climbed 48% to $2.84 billion, while equities revenue rose 27% to $5.33 billion. (goldmansachs.com) The weak spot was fixed income, currencies and commodities, the trading division that handles bonds, foreign exchange and raw materials. Revenue there fell 10% to $4.01 billion, with declines in interest-rate products, mortgages and credit products outweighing gains in commodities and currencies. (goldmansachs.com) That split mattered on April 13 because Goldman’s stock is still judged heavily on trading performance, especially in volatile markets. Reuters reported the shares fell 1.9% after the results, even with profit above expectations. (usnews.com) (finance.yahoo.com) The quarter also showed how much Goldman still depends on its Global Banking and Markets division. That unit produced $12.74 billion in revenue, up 19% from a year earlier, and accounted for roughly three-quarters of the firm’s total revenue. (goldmansachs.com) Goldman said its investment-banking backlog slipped slightly from the end of 2025, even after the advisory rebound. That suggests the recent pickup in dealmaking is real, but not yet broad enough to remove questions about how long it will last. (goldmansachs.com) Chief Executive David Solomon said clients were still leaning on the bank as markets grew more volatile. He said “the geopolitical landscape remains very complex” and called disciplined risk management central to Goldman’s business. (goldmansachs.com) By the closing bell on April 13, Goldman shares were down 1.87% at $890.79. The quarter delivered a clear message: advisory and equities were strong enough to lift earnings, but not strong enough to make investors ignore a soft fixed-income desk. (finance.yahoo.com)