Goldman Sachs just delivered a quarter that makes the phrase "beat expectations" feel like an understatement. The investment bank reported second-quarter earnings of $20.98 per share, blowing past the analyst consensus of $14.40. Revenue hit $20.34 billion, up 39% from a year ago and well above the $16.13 billion Wall Street was looking for. The engine? Investment banking and trading, which both had monster quarters.

Net interest income rose to $3.95 billion from $3.10 billion a year earlier. Operating expenses climbed 26% to $11.67 billion, driven by higher transaction-related costs and compensation, but the bank's efficiency ratio improved to 58.8% from 62.0% a year ago. Provisions for credit losses fell sharply to $102 million from $384 million. Assets under supervision hit a record $4.04 trillion.

CEO David Solomon summed it up in a way that sounds almost poetic for a banker: "Our record performance this quarter reflects the strength of our global franchise, the depth of our relationships, and our ability to harness the power of One Goldman Sachs. Momentum has accelerated throughout our businesses." He added that clients are turning to Goldman for their "most strategic and consequential transactions," which he called "the genesis of activity across the franchise." In other words, when companies need to do something big and complicated, they're calling Goldman.

Segment Performance

Global Banking & Markets revenue jumped 53% to $15.52 billion. Investment banking fees alone were up 55%. Equities revenue soared 72% to $7.42 billion, while fixed income, currencies, and commodities revenue rose 32% to $4.59 billion, driven by strength in interest rate products, commodities, mortgages, and currencies.

Asset & Wealth Management revenue grew 20% to $4.60 billion, supported by higher management fees and stronger investment-related revenue. Platform Solutions, which includes the consumer business, saw revenue fall 64% to $221 million, largely due to markdowns on the Apple Card loan portfolio, which was classified as held for sale in late 2025.

Dividend Increased

Goldman raised its quarterly dividend to $5.00 per share from $4.50, payable Sept. 29 to shareholders of record on Sept. 1, 2026. The firm returned $5.36 billion to shareholders during the quarter, including $4.00 billion in share buybacks and $1.36 billion in dividends.

Price Action

Goldman Sachs shares were up 3.62% in premarket trading at $1,083.75, approaching the 52-week high of $1,125.00.