Goldman Sachs reports highest quarterly equity revenue 📊

Goldman Sachs (GS.US) kicked off earnings season by joining other major banks in reporting their Q2 2025 results. Similar to other large U.S. banks with a significant investment banking presence, Goldman Sachs reported strong revenues, driven by a rebound in financial markets after April's sell-offs.

The company reported net revenues of $14.58 billion, a 15% increase year-over-year. Although this figure is lower than the previous quarter, it significantly surpassed estimates of $13.53 billion. The equities trading revenue segment showed the strongest momentum, rising by 23% year-over-year to $4.3 billion. This marks the best result in the company's history for this segment, largely driven by a 45% year-over-year increase in brokerage revenues.

Goldman Sachs' equities trading revenue. Source: Bloomberg Finance L.P.

The company also achieved better-than-expected cost efficiency, reflected in a lower efficiency ratio (the percentage of costs to revenues) of 63.4%, compared to forecasts of 64.8%. This contributed to a higher net earnings per share (EPS) of $10.91, compared to $8.62 a year earlier.

Despite solid results, Goldman Sachs (similar to JP Morgan Chase) is trading down about -0.5% today. The market's reaction to the results remains neutral, with the prospect of strengthening earnings trends likely to offer long-term potential for the bank's growth rather than a short-term rebound.

Q2 2025 Results:

Revenues:

• Net Revenue: $14.58 billion (+15% y/y); estimates: $13.53 billion

• FICC Sales & Trading Revenue: $3.47 billion; estimates: $3.26 billion

• Equities Sales & Trading Revenue: $4.30 billion; estimates: $3.72 billion

• Global Banking & Markets Net Revenues: $10.12 billion (+24% y/y); estimates: $9.03 billion

• Investment Banking Revenue: $2.19 billion (+27% y/y); estimates: $1.8 billion

• Advisory Revenue: $1.17 billion (+71% y/y); estimates: $852.7 million

• Equity Underwriting Revenue: $428 million (+1.2% y/y); estimates: $384.8 million

• Debt Underwriting Revenue: $589 million (-5.3% y/y); estimates: $592.5 million

• Net Interest Income: $3.10 billion; estimates: $2.43 billion

Earnings & Profitability Ratios:

• EPS: $10.91 (vs. $8.62 y/y)

• Adj. EPS: $10.91; estimates: $9.77

• ROE (Return on Equity): +12.8%; estimates: +11.3%

• Efficiency Ratio: 63.4%; estimates: 64.8%

Costs & Losses:

• Platform Solutions Pretax Loss: $57 million; estimates: $85.6 million loss

• Provision for Credit Losses: $384 million (+36% y/y)

• Total Operating Expenses: $9.24 billion (+8.3% y/y)

Balance Sheet:

• Total Deposits: $466 billion (-1.1% q/q)

• Standardized CET1 Ratio: 14.5%; estimates: 14.7%

• Book Value Per Share: $349.74 (vs. $327.13 y/y)

• Assets Under Management: $3.29 trillion (+12% y/y)

• Total AUS Net Inflows: $5 billion (-93% y/y)

• Loans: $217 billion; estimates: $211.09 billion