- Goldman Sachs Q4 2025 net income rose 12% to $4.62 billion ($14.01 a share), beating expectations despite a 3% revenue dip to $13.45 billion.
- Strength came from a rebound in dealmaking and markets, with investment-banking fees up 25% to $2.58 billion, equities trading a record $4.31 billion (+25%), and FICC up 12.5%.
- The bank is exiting the Apple Card partnership, transferring about $20 billion of balances to JPMorgan, which added 46/share from reserve releases but drove roughly $2.26 billion of revenue markdowns and $38 million in costs.
- Full-year 2025 revenue rose 9% to $58.28 billion and Goldman lifted its dividend to $4.50, underscoring its shift away from consumer banking toward trading, investment banking, and wealth management.
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Goldman Sachs closed 2025 on a high note, with Q4 earnings topping expectations across core business lines. The velocity of dealmaking—namely advisory, equity underwriting, and debt underwriting—surged, underpinning a 25% rise in investment banking fees to $2.58 billion. Equities trading set a new record at $4.31 billion (+25%), while FICC revenue grew 12.5%. These gains powered a 12% year‐over‐year rise in net income to $4.62 billion. Even as overall fourth‐quarter net revenue dipped 3% to $13.45 billion—impacted by the Apple Card exit—the strength in higher‐margin businesses moderated the decline.
The Apple Card divestment is emblematic of Goldman’s broader shift away from its ambitions in consumer banking. The exit will transfer ~$20 billion in card balances to JPMorgan, contributing a one‐time earnings boost (46¢ per share) from reserve releases, offset by revenue markdowns and costs. Notably, the consumer‐focused platform solutions unit posted $2.26 billion in reduced revenues tied to the portfolio write-downs and contract termination obligations.
Strategically, this earnings cycle reinforces Goldman’s repositioning: doubling down on investment banking, trading, and fee‐based asset/wealth management, while shedding loss‐making consumer operations. Full‐year results show net revenues up 9% to $58.28 billion; investment banking fees up ~21%; robust growth in equities and FICC revenues. Dividend increase to $4.50/share signals confidence, and the advisory backlog and deal pipeline are building momentum.
However, stronger markets and dealmaking cycles carry risks. Macroeconomic and geopolitical uncertainties remain real, interest rate paths are uncertain, and regulatory proposals—such as caps on credit card rates—could affect consumer‐finance valuations. Goldman’s exit from consumer banking reduces exposure but also eliminates potential growth levers should regulatory or market dynamics shift. The bank will need to show consistency through 2026 to validate its strategic pivot.
Open questions include: will Goldman be able to maintain margins in trading and underwriting if rate volatility subsides? How will the asset & wealth management segment perform in light of slowing investment gains? What regulatory or tax headwinds might affect M&A or underwriting activity? And how smoothly will the Apple Card transition proceed, both in finance and operational risk?
Supporting Notes
- Net income rose from prior year to $4.62 billion, or $14.01 per share, up about 12% yoy.
- Investment banking fees grew ~25% yoy to $2.58 billion in Q4.
- Equities trading revenue reached $4.31 billion (+25%), while fixed income, currencies, and commodities revenue rose 12.5%.
- Overall net revenues Q4 at $13.45 billion, a 3% decline vs. Q4 2024, largely due to the Apple Card transition.
- Apple Card portfolio transfer estimated at over $20 billion in balances; transaction added 46 ¢ per share from reserve release, offset by ~$2.26 billion in net revenue markdowns and ~$38 million in expenses.
- Full‐year 2025 net revenues were ~$58.28 billion (+9%), investment banking fees ~$9.34 billion (+21%), equities revenue ~$16.54 billion (+23%), FICC revenue ~$14.52 billion (+9%).
- Goldman raised its Q4 2025 dividend by $0.50 to $4.50 per share.