- Jim Cramer says Goldman Sachs and Morgan Stanley are strong, durable franchises after solid Q4 2025 earnings across investment banking, trading, and wealth/asset management.
- Morgan Stanley benefited from a rebound in dealmaking and strong wealth-management momentum, including large net new asset inflows and record segment margins.
- Goldman Sachs posted higher investment-banking fees, record equities trading, and meaningful asset-and-wealth-management inflows as it shifts away from riskier consumer lending.
- Cramer argues both stocks look undervalued versus premium-priced consumer staples, though results remain exposed to a downturn in capital-markets activity.
Read More
Jim Cramer’s bullish stance on Goldman Sachs (GS) and Morgan Stanley (MS) in his January 15, 2026 commentary is well grounded in the recent earnings data. He attributes this strength to stable, ‘granite’ fundamentals rather than short-lived cyclical gains. Indeed, both banks not only beat expectations in Q4 2025, but also set new full-year and quarterly records in several segments. Morgan Stanley achieved $70.6B in full-year revenue, including $17.9B in Q4, with dealmaking revenue up 47% YoY to $2.4B. Meanwhile, Goldman Sachs saw investment banking fees jump ~25%, with strong gains in equities trading and wealth management inflows. ([fool.com](https://www.fool.com/earnings/call-transcripts/2026/01/15/morgan-stanley-ms-q4-2025-earnings-transcript/?utm_source=openai))
Cramer’s comparison of GS and MS to consumer staples such as P&G or Colgate hinges on valuation multiples. While GS trades in the range of ~17.8-19× trailing P/E (with forward estimates modestly higher) ([valueinvesting.io](https://valueinvesting.io/GS/valuation/pe-multiples?utm_source=openai)), P&G is trading at P/E multiples in the low-20s to mid-20s and high P/B (over 6×), reflecting its premium but also raising questions about whether such dividends and brand strength alone justify the valuation. P&G’s forward P/E is around 20-25×, and its PEG ratio and P/B suggest elevated expectations already built in. ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/quote/PG/key-statistics/?utm_source=openai))
Strategically, GS and MS appear to be leveraging the return of M&A and IPO activity, benefiting from favorable regulatory winds and liquidity. Both firms are also rebalancing revenue away from volatile consumer finance (in Goldman’s case, exiting Apple Card) toward more fee-based, recurring revenue streams like wealth and asset management. ([ft.com](https://www.ft.com/content/265dd109-bbc6-4542-9f0a-3b5db7aa1784?utm_source=openai))
However, key risks remain. Investment banking activity is especially sensitive to macroeconomic shifts—rising interest rates, geopolitical instability, or tightening regulation can quickly reverse momentum. For Goldman, exit from the consumer finance business reduces diversification but also lowers risk in that segment. Meanwhile, sustaining elevated wealth management margins and net new asset inflows may become harder if competition intensifies or markets attain less favorable conditions. Valuations still imply optimism—any misstep or cyclical pullback could compress multiples sharply.
Supporting Notes
- Morgan Stanley recorded record full-year revenue of $70.6 B in 2025, with Q4 revenue of $17.9 B, up ~47% YoY in investment banking revenue. ([fool.com](https://www.fool.com/earnings/call-transcripts/2026/01/15/morgan-stanley-ms-q4-2025-earnings-transcript/?utm_source=openai))
- Wealth management: MS posted $31.8 B revenue for full year with 29% pre-tax margin; Q4 revenue $8.4 B with margin ~31.4%. Net new wealth assets Q4: ~$122 B. ([marketbeat.com](https://www.marketbeat.com/instant-alerts/morgan-stanley-q4-earnings-call-highlights-2026-01-15/?utm_source=openai))
- Goldman Sachs: Investment banking fees in Q4 up ~25% YoY to $2.6 B; equity trading net revenues reached $4.3 B, a record. Asset & wealth management net inflows ~$66 B long-term fee-based. ([fool.com](https://www.fool.com/earnings/call-transcripts/2026/01/15/goldman-sachs-gs-q4-2025-earnings-transcript/?utm_source=openai))
- Jim Cramer’s quote: “These are not some episodic rollercoaster firms. They’re solid, granite, tungsten, even,” and that GS/MS “sell at multiples far lower than Colgate or Procter & Gamble …” ([ft.com](https://www.ft.com/content/265dd109-bbc6-4542-9f0a-3b5db7aa1784?utm_source=openai))
- Valuation data: GS trailing P/E ~17.8-19×, forward P/E ~18-21×; P&G’s trailing P/E ~20-25× and P/B over 6×. ([valueinvesting.io](https://valueinvesting.io/GS/valuation/pe-multiples?utm_source=openai))
- Risk flag: Goldman’s revenue YoY declined ~3% vs Q4 2024 when excluding the Apple Card business; fixed income results include mixed performance across FX, credit, and structured products. ([marketwatch.com](https://www.marketwatch.com/story/goldman-sachs-revenue-fell-for-first-time-in-2-years-apple-card-was-the-problem-c19c226d?utm_source=openai))