Goldman Sachs reported record second-quarter results as surging stock-market activity, strong client financing demand and a recovery in corporate dealmaking drove sharp increases across its trading and investment-banking businesses. The firm generated $7.42 billion in equities revenue during the second quarter of 2026, representing a 72% increase from the same period last year. The result surpassed Wall Street’s roughly $5 billion estimate by nearly 50% and exceeded Goldman’s previous quarterly stock-trading records, according to Bloomberg.
Goldman reported $20.34 billion in total net revenue, a 39% year-over-year increase and an 18% improvement from the first quarter. Net earnings reached $6.63 billion, compared with $3.72 billion in the prior-year period.
Diluted earnings were $20.98 per share, nearly double the $10.91 reported a year earlier and substantially above the $14.48 consensus estimate. The firm generated an annualized return on average common shareholders’ equity of 23.5%, while book value per share increased to $367.67.
The results pushed Goldman shares to a record high, with the stock gaining approximately 7.2% following the earnings announcement.
Goldman’s equities operation benefited from record activity across both client trading and financing. Equities intermediation revenue reached $4.16 billion, supported by substantially higher revenue from derivatives and cash products.
Equities financing generated another $3.26 billion, primarily reflecting increased prime-financing revenue. Prime brokerage businesses provide financing, securities lending, trade execution and other services to hedge funds and institutional investors.
Market volatility related to inflation, uncertainty about interest rates and geopolitical developments led institutional clients to reposition their portfolios more aggressively. The return of large initial public offerings and strong performance in equity markets also increased demand for Goldman’s trading and financing services.
Goldman’s fixed-income, currency and commodities business generated $4.59 billion in revenue, an increase of 32% from the prior-year period.
Fixed-income intermediation revenue reached $3.38 billion, driven by stronger activity in interest-rate products, commodities and mortgages. Revenue also increased slightly in currencies but declined in credit products.
Fixed-income financing revenue rose to $1.22 billion, including stronger contributions from mortgage financing and structured lending.
Combined revenue from Goldman’s Global Banking and Markets division reached $15.52 billion, increasing 53% year over year and 22% from the first quarter. The division accounted for more than three-quarters of the firm’s total quarterly revenue.
Investment-banking fees increased 55% to approximately $3.4 billion as initial public offerings, secondary stock sales, debt issuance and merger activity strengthened.
Equity-underwriting revenue reached $985 million, supported by significantly higher revenue from IPOs and secondary offerings. Debt-underwriting revenue totaled approximately $1.03 billion, reflecting increased leveraged-finance and asset-backed issuance.
Advisory revenue reached $1.38 billion as the value of completed mergers and acquisitions increased across the industry. Goldman’s investment-banking backlog also grew from both the end of the first quarter and the end of 2025.
The firm advised on approximately $1.2 trillion of announced M&A transactions during the first half of 2026, which Goldman described as a record pace for an investment bank. That total was approximately $425 billion greater than the volume attributed to its nearest competitor.
A wave of transactions valued above $10 billion helped push global merger activity to record levels during the first half of the year. Companies also pursued acquisitions, capital raises and strategic investments tied to artificial intelligence infrastructure and the broader technology sector.
Goldman’s Asset and Wealth Management division generated $4.60 billion in quarterly revenue, rising 20% year over year and 13% from the first quarter.
Management and other fees increased to $3.36 billion as average assets under supervision grew. Investment revenue reached $441 million, supported by stronger gains from private-equity investments.
Private-banking and lending revenue declined to $689 million, primarily because of a lower net interest margin associated with Marcus deposits. Higher Marcus and private-bank deposit balances partially offset the pressure.
Goldman has been expanding its asset and wealth management operations to build a larger base of recurring revenue and reduce its dependence on the more cyclical trading and investment-banking businesses.
The firm raised approximately $31 billion for private-credit strategies during the quarter. Its nontraded business development company also reported repurchase requests equal to approximately 3.24% of outstanding shares, remaining below its quarterly limit of 5%.
Platform Solutions generated $221 million in revenue, declining 64% from a year earlier. The decrease largely reflected markdowns connected to the Apple Card loan portfolio, which Goldman transferred to held-for-sale status during the fourth quarter of 2025.
Goldman recorded a $102 million provision for credit losses, compared with $384 million in the prior-year quarter. The latest provision primarily reflected impairments involving wholesale loans, while the prior-year figure included provisions connected to the credit-card portfolio.
Operating expenses increased 26% to $11.67 billion, largely because improved financial performance resulted in higher employee compensation and transaction-based expenses. Goldman’s headcount decreased 2% from the end of the first quarter.
The firm returned $5.36 billion to common shareholders during the quarter. This included $4 billion in share repurchases and $1.36 billion in common-stock dividends.
Goldman’s board also increased the quarterly dividend to $5 per common share from $4.50. The dividend is scheduled to be paid on September 29, 2026, to shareholders of record as of September 1.
The second-quarter performance brought Goldman’s first-half net revenue to $37.57 billion and net earnings to $12.26 billion. Diluted earnings for the first six months of the year reached $38.51 per share, while annualized return on equity was 21.7%.
