Goldman Sachs Opens 2026 With a Record GBM Quarter and Sharper Core Profitability
A surge in trading, financing and advisory activity helped Goldman Sachs start 2026 near peak earnings levels, with the latest quarter also comparing favorably against a strong but less clean prior period.
π Key Takeaways
Goldman Sachs reported $17.2B of net revenue, $5.6B of net earnings, $17.55 in EPS and a 19.8% ROE in the first quarter of 2026, making it one of the strongest quarters in the firmβs history. The result was a clear step up from the prior quarterβs $13.5B of revenue, $14.01 of EPS and 16.0% ROE.
Just as importantly, the comparison suggests underlying improvement rather than a simple rebound. Goldman noted that the fourth quarter of 2025 included a $0.46 EPS benefit and a 50 bps ROE lift tied to the Apple card portfolio transition, while the latest quarter was driven primarily by core client activity across markets, financing and advisory.
π What Drove the Quarter
The main engine was Global Banking & Markets, where revenue reached a record $12.7B and segment ROE topped 22%. Advisory revenue climbed to $1.5B, up 89% YoY, while equities produced a record $5.3B, including a record $2.6B of financing revenue. Across FICC and equities financing, Goldman generated $3.7B, up 36% from a year earlier, underscoring managementβs push to build more durable financing income.
FICC was more mixed. Net revenue of $4.0B reflected softer rates and mortgages versus a tough prior-year comparison, partly offset by stronger currencies and commodities. Even so, the firmβs message was that breadth mattered: weaker pockets in macro trading were more than offset by strength in equities, financing and advisory.
π¦ Asset & Wealth Management Stayed Supportive
Asset & Wealth Management added another solid layer to the quarter. Revenue rose to $4.1B, management and other fees increased 14% YoY to $3.1B, and total assets under supervision ended the quarter at a record $3.7T. Goldman also reported $62B of long-term net inflows, marking its 33rd consecutive quarter of long-term fee-based inflows.
That follows a strong end to 2025, when AWM revenue reached $16.7B for the full year and assets under supervision finished at $3.6T. The latest quarter therefore looks like continuation rather than a one-off acceleration, with flow momentum holding up even through March volatility.
βοΈ Capital, Risk and Balance Sheet
Goldmanβs capital position moderated as the firm leaned into client activity and capital return. The CET1 ratio ended the first quarter at 12.5%, down from 14.4% at the end of 2025, reflecting higher risk-weighted assets, growth in prime and acquisition financing, and hefty shareholder distributions. Goldman returned $6.4B to common shareholders in the quarter, including a record $5.0B of buybacks.
Credit costs also normalized. Provision for credit losses was $315M in the first quarter, versus a $2.1B net benefit in the prior quarter, when results were boosted by reserve releases tied to the Apple portfolio transfer. That makes the first-quarter earnings mix look more representative of ongoing franchise performance.
π What Matters Next
Managementβs tone remained constructive. Goldman said M&A activity is still robust, the backlog remains βextraordinarily robust,β and IPO activity should recover when conditions stabilize. At the same time, executives acknowledged higher geopolitical and macro uncertainty, particularly around energy prices, inflation and broader market volatility.
The latest report points to improvement versus the previous quarter, not deterioration: revenue, EPS and ROE all moved higher, capital deployment stayed aggressive, and the business mix looked healthier without the need for large one-time portfolio benefits. The next question is whether Goldman can sustain this pace if volatility easesβor whether a record markets quarter proves to be the high-water mark for an otherwise still-constructive 2026.
