Goldman posts record equities revenue

Goldman Sachs opened 2026 with its best equities quarter on record, helping lift the bank to its second-highest quarterly revenue and profit ever. (goldmansachs.com) The bank reported first-quarter net revenue of $17.23 billion and net earnings of $5.63 billion for the period ended March 31, with diluted earnings per share of $17.55. Revenue rose 14% from a year earlier, and profit rose 19%. (goldmansachs.com) The biggest driver was Global Banking & Markets, where revenue reached $12.74 billion, up 19% from a year earlier. Equities revenue climbed 27% to $5.33 billion, while investment banking fees rose 48% to $2.84 billion. (goldmansachs.com) That equities business is Goldman’s stock-trading and hedge-fund financing arm, and the bank said the gain came largely from prime financing and cash equities. CNBC reported the trading surge was fueled by heavier client activity as investors repositioned during a volatile quarter. (goldmansachs.com) (cnbc.com) The quarter also showed a rebound in dealmaking. Goldman said advisory fees jumped on a “significant increase” in completed mergers and acquisitions, and the firm said it ranked No. 1 in announced and completed mergers and acquisitions and in equity and equity-related offerings. (goldmansachs.com 1) (goldmansachs.com 2) One weak spot was fixed income, currency and commodities, the business that trades bonds, rates and commodities. Revenue there fell 10% to $4.01 billion as interest-rate products, mortgages and credit trading softened. (goldmansachs.com) Asset & Wealth Management added another support beam. Revenue in that division rose 10% to $4.08 billion, assets under supervision hit a record $3.65 trillion, and Goldman logged its 33rd straight quarter of long-term fee-based net inflows. (goldmansachs.com 1) (goldmansachs.com 2) Goldman has been trying to build steadier fee income after pulling back from parts of its consumer banking push. In the same earnings presentation, the bank pointed to completed acquisitions of Industry Ventures in the first quarter and Innovator Capital Management in the second quarter as part of that asset-management expansion. (goldmansachs.com 1) (goldmansachs.com 2) The quarter was not clean across the board. Goldman set aside $315 million for credit losses, up 10% from a year earlier, and CNBC reported that figure was more than double the analyst estimate tracked by StreetAccount. (goldmansachs.com) (cnbc.com) David Solomon said “market conditions became more volatile” during the quarter and called the geopolitical backdrop “very complex.” Goldman still posted a 19.8% return on common equity, a sign that its core trading, dealmaking and asset-management businesses carried more weight than the bond-trading slowdown. (goldmansachs.com) (goldmansachs.com)