Goldman Sachs lifts outlook after second-quarter earnings surge drives shares to record high

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Goldman Sachs Q2 earnings surge

Highlights

Goldman Sachs reports Q2 revenue up 39.5% to $20.34 billion and EPS up 92% to $20.98, sending shares up 7.5% to a record high near $1,136.
Investment banking backlog reaches five-year high, with record advisory pipeline and AI-linked prospective listings from OpenAI, Anthropic and Switch boosting fee expectations.
Assets under supervision hit a new record in Q2, and early Q3 the bank secures $70 billion in retirement assets from Verizon and Lockheed Martin, strengthening long-term fee growth.

Second-quarter performance and deal pipeline

As reported by CNBC, Goldman Sachs delivers a much stronger-than-expected second quarter, with revenue rising 39.5% year over year to $20.34 billion and earnings per share jumping 92% to $20.98, both well ahead of LSEG consensus estimates. The results send the stock up 7.5% and put shares on track for their strongest one-day gain in more than a year, while also pushing the bank to a fresh intraday record high near $1,136.

Goldman says its three main businesses, investment banking, trading, and asset and wealth management, all exceed revenue expectations. The bank also reports an efficiency ratio of 57.4%, a multiyear low, and return on tangible common equity of 25.5%, underscoring stronger profitability and cost discipline.

Chief executive David Solomon says the investment banking backlog rises to its highest level in five years and its second-highest level on record, supported by a record advisory backlog. He also points to a more accommodating stance on mergers and acquisitions under the Trump administration, while prospective listings involving OpenAI, Anthropic and Switch add to expectations that artificial intelligence-related activity continues to support underwriting and advisory fees.

Wealth management growth and broader business impact

Goldman is also leaning on asset and wealth management to build a steadier earnings base beyond the more cyclical trading and dealmaking businesses. Assets under supervision reach a new record in the June quarter, and early in the third quarter the bank secures $70 billion in combined retirement assets from Verizon and Lockheed Martin, strengthening its platform for future fee growth.

Solomon says Goldman has seen nearly 900 referrals from investment banking to wealth management since the start of 2025, reflecting the bank's effort to deepen client relationships across divisions. He says the firm is increasing investment in wealth management because the pool of very wealthy clients with investable assets is expanding rapidly, a trend that could help the bank grow earnings more sustainably over time.

Management also says Goldman continues to invest in artificial intelligence tools to improve productivity, though finance chief Denis Coleman says adoption is still at an early stage. In operating terms, the biggest contribution comes from the global banking and markets division, where revenue rises 53% to $15.52 billion, helped by a 55% increase in investment banking revenue, a 72% surge in equities revenue and a 32% gain in fixed income, currency and commodities.

In our earlier coverage of Goldman Sachs’ Q2 results and GS price outlook, we highlighted how record equities trading and a rebound in investment banking fees helped push the stock sharply higher. We also noted that while the broader setup remained bullish, overbought technical signals pointed to a higher likelihood of near-term consolidation within a defined trading range.

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