Goldman Sachs just delivered a quarter for the history books. The bank's stock hit a fresh 52-week high on Wednesday after reporting second-quarter results that blew past expectations. But not everyone is ready to pop the champagne. Citizens kept its Market Perform rating on the stock, warning that the rally may have already priced in the good news.

Citizens analysts Devin Ryan and Noah Katz said Goldman's results were well above expectations, powered by strength across investment banking, equities, fixed income trading, and asset management. The numbers are hard to argue with: earnings per share of $20.98 beat Citizens' own estimate of $15 by 40% and topped the Street consensus of $14.48 by 45%. Revenue climbed 39% year over year to $20.34 billion, about $4 billion above what analysts were expecting. Goldman also generated a 23.5% return on equity during the quarter.

Citizens noted that the revenue outperformance came from Goldman's core franchise rather than one-time gains. Record results in equities trading and financing, stronger fixed-income performance, and improving investment banking activity all pointed to broad-based operating momentum. The analysts also highlighted growing opportunities tied to artificial intelligence, saying the AI investment cycle is expanding demand across data centers, energy, infrastructure, and capital markets activities.

Beyond the quarter, Citizens pointed to record alternatives fundraising and disciplined expense management as factors that could support earnings. Goldman raised $59 billion of third-party alternatives capital during the quarter and now expects more than $125 billion of fundraising this year.

Following the strong results, Citizens raised its 2026 earnings estimate to $72.55 per share from $64.38 and increased its 2027 estimate to $74.25 from $69.75. Despite the higher forecasts, the firm reiterated its Market Perform rating. Citizens said Goldman deserves a premium valuation because of its improving earnings mix, market-share gains, and capital flexibility. However, it cautioned that the shares already price in much of the favorable outlook, leaving less room for upside if trading activity normalizes or investment banking recovery slows.

Goldman Sachs shares were up 0.43% at $1,144.91 at the time of publication on Wednesday, trading at a new 52-week high.