Goldman Sachs Group Inc. (GS) shares slipped Thursday after the Wall Street giant reported fourth-quarter results that told two very different stories. On one hand, the bank's core trading and investment banking operations fired on all cylinders. On the other hand, the expensive breakup with Apple (AAPL) over the Apple Card partnership left a nasty mark on the books.

The Apple Card Hangover

Net revenue fell 3% year over year to $13.45 billion, missing analyst estimates of $13.79 billion. The culprit? A staggering $2.26 billion hit from the bank's Platform Solutions division, tied to moving Apple Card loans to held-for-sale status and covering contract termination costs as the program transitions to a new issuer. It's a painful reminder that Goldman's consumer banking experiment didn't quite work out as planned.

On a brighter note, net interest income climbed to $3.71 billion from $2.35 billion in the prior-year quarter. But operating expenses also rose 18% to $9.72 billion, driven by higher compensation costs and transaction-based expenses.

Earnings Beat Despite Revenue Miss

Here's where things get interesting. Despite the revenue shortfall, Goldman posted earnings of $14.01 per share, up from $11.95 a year ago and beating the $11.65 consensus estimate. How? The provision for credit losses swung to a net benefit of $2.12 billion, compared to net provisions of $351 million in the year-ago quarter. That's accounting magic working in the bank's favor.

The firm's efficiency ratio came in at 64.4% for 2025, compared to 63.1% in 2024. Capital ratios remained healthy with the Standardized CET1 ratio at 14.4% and the Advanced CET1 ratio at 15.0%.

Assets under supervision reached a record $3.61 trillion, marking the 31st consecutive quarter of long-term fee-based net inflows. That's a remarkable streak that speaks to the stickiness of Goldman's wealth management franchise.

What Management Said

Chairman and CEO David Solomon struck an upbeat tone, saying, "Since our first Investor Day where we laid out our comprehensive strategy, the firm has grown its revenues by 60%, improved returns by 500 basis points and delivered total shareholder returns of more than 340%. We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026, activating a flywheel of activity across our entire firm."

Trading and Banking Shine

Goldman's Global Banking and Markets division delivered the goods, with revenue jumping 22% to $10.41 billion. Investment banking fees rose 25%, while the trading desks put up impressive numbers with FICC revenue up 12% and equities soaring 25%. These are the kind of results that remind everyone why Goldman remains a Wall Street powerhouse.

Asset and Wealth Management revenue held steady at $4.72 billion, though the flatness masked some underlying shifts. Significantly lower revenues in investments were offset by higher management and other fees. Wealth management client assets totaled approximately $1.9 trillion.

Platform Solutions, home to the ill-fated consumer banking ventures, posted negative revenue of $1.68 billion, compared to positive revenue of $592 million a year earlier. That's almost entirely due to the Apple Card writedown.

Rewarding Shareholders

Goldman returned $16.78 billion to shareholders in 2025, including $12.36 billion in share buybacks and $4.42 billion in dividends. The board sweetened the pot on January 14, raising the quarterly dividend to $4.50 per share from $4.00, payable March 30, 2026, to shareholders of record as of March 2, 2026.

The bank is also reportedly looking to raise at least $12 billion through an investment-grade bond sale, according to Bloomberg.

Goldman Sachs shares were down 1.57% at $918.02 following the earnings release.