The Goldman Sachs Group Q2 Earnings Call Highlights

Key Points

• Goldman Sachs posted record Q2 2026 results, with net revenues of $20.3 billion and EPS of $20.98, driven by strong client activity and a surge in strategic dealmaking. Global Banking & Markets generated record revenues of $15.5 billion, while Asset and Wealth Management revenue rose 20% year over year.
• Investment banking was a major standout, as M&A, equity underwriting, and debt underwriting all jumped sharply. Goldman said its backlog hit a five-year high and its advisory franchise remained a top-ranked leader in announced and completed M&A volume.
• AI-related infrastructure spending is emerging as a key growth theme, boosting financing, structuring, and capital markets demand across public and private markets. Management said the AI build-out is still in the early innings and could support multi-year opportunities, though they warned the path may be uneven.

The Goldman Sachs Group NYSE: GS reported record second-quarter 2026 results, with Chairman and Chief Executive Officer David Solomon citing strong client activity, an acceleration in strategic dealmaking and rising demand tied to artificial intelligence infrastructure investment.

Goldman generated record quarterly net revenues of $20.3 billion and record earnings per share of $20.98. The firm reported return on equity of 23.5% and return on tangible equity of 25.5% for the quarter. Chief Financial Officer Denis Coleman said Global Banking & Markets produced record revenues of $15.5 billion, while Asset and Wealth Management revenues rose 20% year over year to $4.6 billion.

Solomon said the results reflected “the strength of our global franchise, the depth of our relationships, and our ability to harness the power of One Goldman Sachs in a very strong operating environment.” He added that Goldman’s investment banking backlog rose to its highest level in five years and its second-highest level on record, despite strong revenue production in the quarter.

Investment banking boosted by M&A and underwriting

Goldman executives pointed to a sharp pickup in strategic transactions as a major driver of performance. Solomon said large-cap corporate M&A volumes were up 90% through the first half of 2026, as clients sought greater scale to invest and compete more effectively.

Coleman said advisory revenues rose 17% year over year to $1.4 billion, primarily due to higher completed volumes. He said Goldman advised on $1.2 trillion in announced deal volume through the first half of the year, maintaining the firm’s top position in announced and completed M&A volume and leading its closest peer by approximately $425 billion.

Equity underwriting revenues were $985 million, up 130% year over year, while debt underwriting revenues reached $1 billion, up 75% and representing Goldman’s best quarter on record in that category, according to Coleman. The firm cited marquee mandates including acting as lead-left bookrunner on what Solomon described as the record-breaking IPO for SpaceX and an equity raise for Alphabet. Solomon also said Goldman advised on Dominion Energy’s sale to NextEra Energy and Comcast’s spinoff of NBCUniversal.

Solomon said the advisory business often serves as the starting point for broader client activity across the firm, including financing, risk management, capital markets execution and investment opportunities for Asset and Wealth Management clients. In response to an analyst question, he said the “multiplier effect” across the firm is significant, though he did not quantify it.

Equities and FICC post broad-based strength

Goldman’s markets businesses also delivered strong results. Coleman said FICC net revenues were $4.6 billion, up 32% from the prior year, with intermediation revenues up 39% on stronger performance across interest rate products, commodities and mortgages. FICC financing revenues rose 14% to a record level, supported by mortgages and structured lending.

Equities net revenues were a record $7.4 billion. Equities intermediation revenues rose 60% year over year to a record $4.2 billion, while equity financing revenues increased 91%, driven by strength in Asia and another record for average prime balances.

During the question-and-answer portion of the call, Coleman said the equities performance reflected multi-year investments in talent, technology and risk management, particularly in Asia. He said Goldman had identified opportunities to improve its market share in Asian equities and had deployed additional resources following regulatory capital relief earlier in the year.

Solomon added that Goldman’s global footprint was an advantage in the current environment, saying the firm has “scale and leadership positions across every region of the world” in equities.

AI investment cycle drives financing demand

Management repeatedly highlighted artificial intelligence as a major theme for client activity. Solomon said the AI investment cycle is expanding capital needs beyond core technology into infrastructure, energy and data centers, creating opportunities for Goldman to provide structuring, financing, risk management and execution across public and private markets.

Asked about the durability of the AI capital expenditure cycle, Solomon said Goldman views the build-out as being in the “relative early innings” of a significant multi-year cycle. However, he cautioned that the path would not be linear and said there could be “bumps and recalibrations” as markets assess the ultimate demand for AI technology and enterprise adoption.

Solomon also discussed AI’s impact inside Goldman, saying the technology will change how work gets done but will not replace “what matters most in driving our business, our extraordinary people.” Coleman said AI and process improvements are allowing employees to be more productive, but added that the firm is not currently pursuing a structural rework of its headcount.

Asset and wealth management assets reach records

Goldman reported record assets under supervision of $4 trillion at quarter-end, supported by $91 billion of long-term net inflows. Coleman said the quarter marked the firm’s 34th consecutive quarter of long-term fee-based net inflows.

Management and other fees in Asset and Wealth Management rose 20% year over year to a record $3.4 billion, primarily due to higher average assets under supervision. Wealth management client assets reached roughly $2 trillion, according to Solomon, who said the firm’s ultra-high net worth business is positioned to benefit from wealth creation tied to elevated capital formation and strategic activity.

Solomon said Goldman has seen nearly 900 referrals to wealth management from investment banking since the start of 2025, demonstrating the benefits of the firm’s One Goldman Sachs approach.

In alternatives, Goldman reported $459 billion of assets under management at the end of the quarter. Coleman said gross third-party alternatives fundraising was a record $59 billion for the quarter and $85 billion for the first half of the year. The firm now expects full-year alternatives fundraising to exceed $125 billion.

Solomon said investor interest remained strong, including in private credit, where Goldman raised $31 billion during the quarter. He also highlighted recent mandates to manage Verizon’s and Lockheed Martin’s retirement plans, representing a combined $70 billion in assets under supervision.

Capital returns and outlook

Goldman’s common equity tier 1 ratio was 12.9% at the end of the quarter under the standardized approach, 150 basis points above its current capital requirement. Coleman said the firm was pleased with its recent CCAR results and continues to support proposed regulatory changes aimed at improving transparency and stress test calibration.

The firm repurchased $4 billion of common stock during the quarter and announced an increase in its quarterly dividend to $5 per share. Solomon said the dividend increase represented a 25% rise from a year earlier and a 150% increase over the past five years.

Looking ahead, Solomon said the U.S. economic backdrop remains “largely resilient,” though he emphasized that risks can emerge quickly and create disruption and volatility. He said Goldman remains disciplined in risk management while seeking to support clients across market conditions.

“There is no question that a confluence of market tailwinds is supporting client activity,” Solomon said. “We will remain disciplined in how we invest and manage risk.”

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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