Goldman Sachs Q2 Earnings: Revenue Up 15%, EPS Rises 26.6%

Goldman Sachs reported Q2 2025 revenue of $14.58 billion, beating estimates and up 15% YoY. Diluted EPS was $10.91, exceeding forecasts by $1.26 and rising 26.6% from Q2 2024. The firm lifted its quarterly dividend to $4.00 per share, up from $3.00 per share in the prior quarter. Net earnings increased 22.4% YoY to $3.72 billion, and annualized return on common equity was 12.8%.

Goldman Sachs Group Inc (NYSE: GS) reported its second quarter 2025 financial results on July 16, showcasing record Assets Under Supervision (AUS) of $3.29 trillion while delivering mixed performance across its business segments. The banking giant announced a 33% increase in its quarterly dividend despite sequential declines in several key metrics compared to the strong first quarter.

Key Highlights:

- Revenue and Earnings: Goldman Sachs reported net revenues of $14.58 billion for Q2 2025, down 3% quarter-over-quarter but up 15% year-over-year. Net earnings came in at $3.72 billion, translating to earnings per share (EPS) of $10.91, representing a 23% decline from Q1’s $14.12 but a 27% increase year-over-year.

- Dividend Increase: The firm lifted its quarterly dividend to $4.00 per share, up from $3.00 per share in the prior quarter.

- Global Banking & Markets: This segment continued to be the primary revenue driver, generating $10.12 billion in net revenues, down 5% quarter-over-quarter but up 24% year-over-year. Advisory services and equities revenues showed remarkable strength, with revenues up 48% and 3% quarter-over-quarter, respectively.

- Asset & Wealth Management: The segment reported revenues of $3.78 billion, up 3% quarter-over-quarter but down 3% year-over-year. The standout achievement was reaching record Assets Under Supervision of $3.29 trillion, an increase of $120 billion during the quarter.

- Platform Solutions: The segment continued to face challenges, reporting a pre-tax loss of $57 million despite revenue growth. Net revenues increased 1% quarter-over-quarter and 2% year-over-year to $685 million, but provision for credit losses jumped 51% quarter-over-quarter to $307 million.

- Capital Position: Goldman Sachs maintained a strong capital position with a Standardized CET1 capital ratio of 14.9%. The firm’s balance sheet showed total assets of $1.79 trillion and shareholders’ equity of $124 billion.

Market Reaction: In premarket trading following the release, Goldman Sachs shares were up 1.65% to $714.10, indicating a positive initial market reaction despite the sequential earnings decline.

Forward Outlook: While Goldman Sachs did not provide specific forward guidance, the substantial dividend increase suggests management confidence in future performance. The firm’s continued leadership in M&A advisory services, record equities revenues, and growing asset management business provide multiple avenues for growth. However, the increased credit loss provisions in the Platform Solutions segment and the sequential decline in several key metrics compared to the strong first quarter may indicate some headwinds in the consumer-facing business and potentially more challenging market conditions in the second half of 2025.

References:
[1] https://www.investing.com/news/company-news/goldman-sachs-q2-2025-slides-record-aus-of-329t-amid-mixed-quarterly-results-93CH-4137563
[2] https://za.investing.com/news/company-news/goldman-sachs-q2-2025-slides-record-aus-of-329t-amid-mixed-quarterly-results-93CH-3791418