Goldman Sachs Q2 Earnings Preview: Expectations and Analyst Views

Goldman Sachs is set to report Q2 earnings on July 16, with analysts expecting EPS of $9.65, a 12% YoY increase, and revenues of $13.51 billion, a 6% YoY increase. The stock has gained 26% YTD due to strong trading results, higher capital returns, and a pickup in deals and IPOs. TipRanks AI analyst rates Goldman Sachs as Neutral with a price target of $773, suggesting 8.37% upside. Options traders expect a 3.83% move in either direction in reaction to Q2 results.

Goldman Sachs (GS) is scheduled to release its second-quarter 2025 earnings on July 16, with analysts expecting an earnings per share (EPS) of $9.65, representing a 12% year-over-year (YoY) increase [2]. Revenue projections stand at $13.51 billion, indicating a 6% YoY growth [2]. The stock has surged 26% year-to-date (YTD) due to robust trading results, higher capital returns, and an uptick in deals and initial public offerings (IPOs) [3].

Analysts have revised their EPS estimates downward by 1.1% over the past 30 days, reflecting a collective reevaluation of initial estimates [3]. The consensus EPS estimate now stands at $9.43 per share, suggesting a 9.4% YoY increase [1]. Revenue projections have been revised upward to $13.50 billion, indicating a 6.1% YoY increase [1].

Key factors shaping GS’s Q2 results include market-making revenues, investment banking (IB) fees, net interest income (NII), and expenses. Market volatility and client activities in the second quarter are expected to drive market-making revenues, while strong deal-making activities and leadership in the IB space are likely to boost IB revenues [1]. NII is projected to increase by 28.3% YoY, driven by solid lending demand and stable funding costs [1]. Expenses are anticipated to rise due to investments in technology and market development, as well as higher transaction-based expenses [1].

Goldman Sachs has a history of earnings surprises, with an average earnings surprise of 20.74% over the past four quarters [1]. However, our model does not predict an earnings beat for GS this time. The company carries a Zacks Rank #3, suggesting a neutral outlook [1].

The stock has outperformed its peers, JPMorgan (JPM) and Morgan Stanley (MS), with JPM rising 19.8% and MS rallying 22.7% in the second quarter of 2025 [1]. Goldman Sachs is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.74X, slightly above the industry average of 14.66X [1]. Its peers JPMorgan and Morgan Stanley trade at forward 12-month P/E ratios of 14.91X and 15.94X, respectively [1].

The TipRanks AI analyst rates Goldman Sachs as Neutral with a price target of $773, suggesting an 8.37% upside [3]. Options traders anticipate a 3.83% move in either direction in response to Q2 results [3].

Investors should monitor the upcoming earnings report for clarity on Goldman Sachs's performance and potential entry points. Those already holding the stock may consider retaining it due to its strong fundamentals and long-term growth prospects. However, caution is advised due to rising expenses and a premium valuation.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/JPM-N/pressreleases/33389273/goldman-s-q2-earnings-on-the-deck-here-s-how-to-play-the-stock-now/
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46343357/goldman-sachs-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call
[3] https://finance.yahoo.com/news/stay-ahead-game-goldman-gs-131502712.html