Goldman Sachs stunned Wall Street on Tuesday with second-quarter 2026 results that shattered even the most optimistic forecasts, as a blistering equities-trading performance and a broad revenue surge drove diluted earnings per share to a record $20.98 — a 92% year-on-year leap.
The bank reported net revenue of $20.34 billion, a 39% increase from the prior year and roughly 25% above the FactSet consensus of $16.23 billion. Net earnings jumped 78% to $6.63 billion, while the annualised return on average common equity climbed to 23.5% from 12.8%.
Global Banking & Markets delivered $15.52 billion in revenue, up 53%, with equities the standout: revenue there surged 72% to a record $7.42 billion, driven by both cash and derivatives intermediation and a near-doubling of equities financing fees. Fixed-income, currency and commodities revenue rose 32% to $4.59 billion, also setting financing records.
Investment-banking fees added $3.40 billion, a 55% increase, as equity and debt underwriting saw triple- and double-digit gains. The firm said its investment-banking backlog expanded during the quarter, pointing to a robust pipeline. In asset and wealth management, revenue grew 20% to $4.60 billion, with assets under supervision hitting an all-time high of $4.04 trillion after $230 billion of net inflows.
The blowout quarter follows rising expectations set by analysts earlier this week, when price targets from Bank of America and Evercore ISI were lifted to $1,150 and $1,075, respectively. Options traders had priced in a 4.78% post-earnings swing, nearly double the average, and Goldman’s stock — already up 21% year-to-date — extended gains after the release.
The bank returned $5.36 billion to shareholders, including a $4 billion buyback and an 11% dividend increase to $5 per share. CEO David Solomon cited accelerating momentum across all businesses, underscoring the firm's ability to capitalise when market activity strengthens.
