The Goldman Sachs Group Q1 Earnings Call Highlights

Key Points

• Goldman Sachs reported a "very strong" Q1 with $17.2 billion in net revenues, $5.6 billion in net earnings and EPS of $17.55, returned $6.4 billion to shareholders (including a record $5.0 billion in buybacks) and finished the quarter with a CET1 ratio of 12.5%.
• Global Banking & Markets posted record Q1 revenues of $12.7 billion, led by a record $5.3 billion in equities revenues and a 36% rise in financing revenues year-over-year, with particular strength in Asia and prime financing.
• Asset & Wealth Management reached a record $3.7 trillion in assets under supervision with $62 billion of long-term net inflows (its 33rd consecutive quarter) and alternatives AUM of $429 billion with $26 billion gross fundraising—including $10 billion for private credit as the firm pursues a $300 billion private credit target.

The Goldman Sachs Group NYSE: GS reported what management called a “very strong performance” for the first quarter of 2026, posting its second-highest quarterly net revenues, net earnings, and earnings per share in firm history amid a volatile macro backdrop that shifted meaningfully as the quarter progressed.

First-quarter results and macro backdrop

Chairman and CEO David Solomon said Goldman Sachs generated net revenues of $17.2 billion, net earnings of $5.6 billion, and earnings per share of $17.55, producing a return on equity (ROE) of 19.8% and a return on tangible equity (ROTE) of 21.3%.

Solomon described an early-quarter tone of optimism—record-high markets and client focus on “growth, strategic activity, and capital deployment”—that later gave way to higher volatility tied to concerns about AI-driven disruption in areas such as software, uncertainty in parts of private credit, and the conflict in the Middle East. He said the quarter underscored the benefits of a “scaled, diversified, and global franchise,” emphasizing risk management in a “highly dynamic environment.”

Solomon also highlighted increased client engagement with the firm’s research and digital platforms. He said monthly average users were up more than 30% year-over-year in the Global Investment Research portal, which saw its second-highest single day of client activity in early March.

Global Banking & Markets posts record revenue

CFO Denis Coleman said Global Banking & Markets produced record first-quarter revenues of $12.7 billion and generated an ROE of more than 22%.

In investment banking, Coleman reported:

• Advisory revenues of $1.5 billion, up 89% year-over-year on higher completed volumes.
• Equity underwriting revenues of $535 million, up 45% year-over-year, driven by improved convertibles results.
• Debt underwriting revenues of $811 million, up 8% year-over-year, driven by better investment-grade and asset-backed activity.

Solomon said Goldman remained the number one M&A advisor globally and cited several large announced transactions, including Unilever’s food business merger with McCormick, Sysco’s acquisition of Jetro Restaurant Depot, and Coterra Energy’s sale to Devon Energy. He added that while IPO and sponsor execution was tempered by market conditions, the firm’s backlog ended 2025 at its highest level in four years and remained “extraordinarily robust” at quarter-end.

In trading, Coleman said FICC net revenues were $4.0 billion, with Rates and Mortgages “significantly lower” than the prior year due to a tougher market-making backdrop, partly offset by “significantly better” results in Currencies and Commodities. He reported FICC financing revenues of $1.1 billion.

Equities net revenues were a record $5.3 billion. Equities intermediation revenues of $2.7 billion rose 7% year-over-year, while record Equities financing revenues of $2.6 billion increased 59% year-over-year, with particular strength in Asia and another record for average prime balances. Coleman said financing revenues across FICC and Equities totaled $3.7 billion, up 36% year-over-year, and represented nearly 40% of total FICC and Equities revenues.

In response to analyst questions about balance sheet strategy and capital deployment, management pointed to an intentional emphasis on supporting client franchise activities, including equities financing—especially in Asia—private wealth lending, FICC financing, corporate lending, and acquisition financing. Coleman said the quarter’s CET1 ratio decline was driven by record capital return and RWA growth tied mainly to prime financing, acquisition financing, and market risk RWAs amid higher volatility.

Asset & Wealth Management inflows and alternatives fundraising

Goldman Sachs reported Asset and Wealth Management revenues of $4.1 billion. Coleman said management and other fees rose 14% year-over-year to $3.1 billion, primarily due to higher average assets under supervision, while incentive fees were $183 million.

Total assets under supervision ended the quarter at a record $3.7 trillion. Coleman said the firm produced $62 billion of long-term net inflows—its 33rd consecutive quarter of long-term fee-based net inflows—including $22 billion in wealth management flows, as Solomon noted.

In alternatives, Coleman said alternative AUM totaled $429 billion and gross third-party alternatives fundraising was $26 billion in the quarter, including $10 billion in private credit strategies, as Solomon highlighted. Solomon addressed increased scrutiny of private credit, emphasizing Goldman’s “30-year track record” and a platform he described as predominantly institutional. He also detailed his view of the broader market, distinguishing between retail and institutional dynamics in direct lending and noting that spreads were becoming “more lender-friendly.”

During the Q&A, Solomon said Goldman remained confident it had “significant runway” to scale its private credit business toward a $300 billion target and suggested that a credit cycle could present an opportunity for firms with disciplined underwriting and portfolio construction. Coleman added that, in FICC financing, the firm’s life-to-date realized losses—excluding some direct commercial real estate—were “zero,” citing underwriting discipline, collateral protection, covenants, and margining.

Expenses, credit provisions, and capital return

Coleman reported total operating expenses of $10.4 billion and an efficiency ratio of 60.5%. The compensation ratio net of provisions was 32%, which management said reflected higher revenues and the firm’s pay-for-performance approach. Non-compensation expenses were $5.0 billion, with Coleman attributing most of the year-over-year increase to higher transaction-based expenses linked to robust activity levels, particularly in equities.

He also said the firm was accelerating investments tied to its “One Goldman Sachs 3.0” initiative, including cloud migration and improvements in data quality to enable broader AI deployment and productivity gains over time.

Firmwide net interest income was $3.7 billion. The total loan portfolio ended the quarter at $253 billion, up from the fourth quarter, primarily reflecting growth in corporate and other collateralized loans. Coleman said the provision for credit losses of $315 million reflected growth and impairments in the wholesale lending portfolio; in Q&A, he said the build reflected a combination of loan growth, “single-name impairments,” and adjustments tied to the operating environment.

Goldman ended the quarter with a Common Equity Tier 1 ratio of 12.5% under the Standardized Approach, 110 basis points above its current capital requirement of 11.4%. Coleman said the firm returned $6.4 billion to common shareholders, including record common stock repurchases of $5.0 billion and dividends of $1.4 billion, while also deploying capital to support client activity.

Regulation, AI, and the outlook for activity

Solomon said the firm was encouraged by the direction of regulatory reform, including Basel III finalization and G-SIB surcharge re-proposals, while noting the rulemaking process remained underway. Coleman said Goldman intended to comment and pointed to areas where the firm believes further improvements could be made, including “double count” issues in operational risk and elements of FRTB and CVA.

On AI, Solomon said he viewed the technology as “extraordinarily constructive” for Goldman Sachs and for enterprises broadly, both for efficiency and for accelerating growth investment, while also acknowledging the need to remain focused on cybersecurity and resilience as technology evolves.

Asked about the investment banking pipeline, Solomon described M&A as “incredibly robust,” while acknowledging IPO activity slowed somewhat in March amid heightened uncertainty tied to the Middle East conflict. He said equity markets had been “extremely resilient” and suggested IPO activity could accelerate if that resilience continues, though he cautioned that energy prices and their potential impact on inflation and consumer demand were being watched closely.

About The Goldman Sachs Group NYSE: GS

The Goldman Sachs Group, Inc is a global investment banking and financial services firm headquartered in New York City. Founded in 1869 as a commercial paper business, the company has grown into a diversified financial institution that provides a broad range of services to corporations, financial institutions, governments and individuals. The firm is led by Chief Executive Officer David M. Solomon and operates across major financial centers worldwide.

Goldman Sachs' core businesses include investment banking, global markets, asset and wealth management, and consumer banking.

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