Goldman Sachs Crushes Q2 Estimates as Equities Trading Hits Record High

Equities trading led the way with $4.3 billion in revenue—up 36% from a year earlier—setting a new record for the bank. Fixed income, currencies, and commodities (FICC) brought in $3.47 billion, up 9% annually.

These figures outpaced forecasts by $840 million on trading revenue alone, underscoring strong client activity during a quarter defined by policy-driven volatility.

Investment Banking Rebound Lifts Outlook

Goldman’s investment banking fees rose 26% to $2.19 billion, as advisory revenues surged and dealmaking showed renewed momentum. While debt underwriting dipped slightly, the rebound in M&A advisory offset the decline.

The pickup in investment banking follows a broader trend across Wall Street, with JPMorgan, Citigroup, and Wells Fargo also reporting stronger-than-expected earnings earlier in the week.

Asset and Wealth Management Lags as Investment Performance Softens

In contrast, revenue from the bank’s asset and wealth management division fell 3% to $3.78 billion. The decline was attributed to weaker performance in equity and debt investments. Despite the drop, the segment remains strategically important for its recurring revenue potential and lower volatility compared to trading.

Goldman also increased its provisions for credit losses to $384 million, up from $282 million a year ago, mainly due to its credit card exposure. Meanwhile, after clearing the Federal Reserve’s annual stress test, the bank will boost its dividend by $1 a share starting in Q3.