Goldman Sachs has kicked off the 2026 earnings season with a blowout first-quarter performance, reporting a 19% year-over-year jump in net earnings to $5.63 billion. Earnings per share (EPS) of $17.55 significantly surpassed analyst estimates of $16.47, while revenue reached $17.23 billion, topping the $17 billion forecast.
The results were driven by two powerhouse divisions. Equities revenue soared 27% to a record $5.33 billion, the highest the firm has ever posted for that business. This surge was attributed to heightened market volatility linked to geopolitical tensions, including the ongoing Iran war, which prompted clients to reposition portfolios and hedge risk, benefiting trading desks.
Investment banking fees were the other major contributor, skyrocketing 48% to $2.84 billion. This was fueled by a resilient mergers and acquisitions (M&A) market, with global M&A volumes hitting $1.38 trillion in Q1. Goldman Sachs led in market share, advising on high-profile deals such as Unilever's planned merger with McCormick to create a $65 billion company and Equitable's proposed tie-up with Corebridge. The firm is also positioned as a lead bank on SpaceX's anticipated $75 billion IPO.
One soft spot was the fixed income, currencies, and commodities (FICC) division, where revenue fell 10% to $4.01 billion. Meanwhile, the assets and wealth management division posted steady growth, with revenue rising 10% to $4.08 billion. Goldman also completed its acquisition of Innovator Capital Management, boosting its total ETF assets under supervision to $90 billion.
Despite the strong numbers, CEO David Solomon struck a cautious tone, stating, "The geopolitical landscape remains very complex — so disciplined risk management must remain core to how we operate." The bank's stock had risen over 3% year-to-date in 2026 following the report, continuing a strong performance from 2025.
