- Goldman Sachs set a Wall Street record with $4.31B in Q4 2025 equities trading revenue, up ~25% YoY and about $700M above estimates.
- FICC trading rose ~12.5% to ~$3.1B and investment-banking fees climbed ~25% to ~$2.6B as capital-markets activity strengthened.
- Despite EPS beating expectations, total Q4 revenue missed forecasts and results benefited from a one-time gain tied to exiting the Apple Card business.
- The firm is pivoting toward higher-margin, fee-based asset and wealth management, with ~$3.1B in quarterly fees and ~$3.6T in assets under supervision, while facing 2026 volatility, cost, and regulatory risks.
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Goldman Sachs closed 2025 on a high note, with its fourth-quarter results underscoring both the benefits and challenges of its strategic repositioning under CEO David Solomon. The headline figure—$4.31 billion in equities trading revenue—represented not just a bounce driven by volatile markets, but a new record for any Wall Street bank in a single quarter. With FICC trading up 12.5% YoY to ~$3.1 billion and investment banking fees climbing roughly 25% to ~$2.58–2.60 billion, the bank’s traditional capital markets engines roared back.
However, beneath the strong profits lie some early warning signs. Although Goldman’s EPS of $14.01 exceeded expectations, total Q4 revenue of $13.45 billion missed forecasts, showing downside risk if trading volumes soften. The one-time gain from the Apple Card division exit also boosted results in a way that may not repeat. Meanwhile, higher interest expense pressures, tighter underwriting competition, and uncertain regulatory policy in 2026—especially around consumer finance and sponsorship activities—are key risk vectors.
Strategically, the firm has accelerated its shift toward fee-based and higher-margin businesses. Asset & Wealth Management delivered record quarterly fees (~$3.1 billion), and management is targeting a ~30% pretax margin for AWM in the medium term. The acquisition of Innovator Capital Management and others, and managing $3.6+ trillion in assets under supervision, positions Goldman with stronger recurring revenue streams—offering a cushion when trading or deal flow weaken.
In terms of market positioning, Goldman’s strong performance gives it momentum among peers. It outpaced many competitors in equity and M&A advisory rankings in 2025, growing backlog for investment banking, and its trading franchise—especially equities intermediation and financing—now looks best in class. The question now is sustainability: can Goldman’s trading and dealmaking momentum hold through a potentially less volatile macroenvironment in 2026? And will its cost base, particularly compensation and credit-oriented exposures, stay in check?
Supporting Notes
- Equities trading revenue in Q4 2025 was $4.31 billion, up ~25% YoY and exceeding analyst estimates by ~$700 million.
- Fixed income, currencies, and commodities trading revenues rose to ~$3.1 billion, up 12.5% year-over-year.
- Investment banking fees in Q4 jumped ~25% to ~$2.58–2.60 billion, driven by advisory, debt and equity underwriting.
- Goldman’s net earnings for the quarter reached ~$4.62 billion, with earnings per share at ~$14.01 despite total revenue ($13.45 billion) missing forecasts.
- Asset & Wealth Management fees were ~$3.1 billion in Q4, setting periodic records, with assets under supervision around $3.6–$3.61 trillion.
- The bank raised its dividend to $4.50 per share and exited its Apple Card credit card partnership, helping reduce credit and consumer finance exposure.