Goldman Equity Traders Smash Wall Street Revenue Record

Goldman Sachs Group Inc. reported record equities-trading revenue of $4.31 billion in the final three months of 2025, setting a new high for any Wall Street bank. The result surpassed expectations and outperformed the firm’s previous peak from the second quarter of 2025. The bank also announced a higher dividend of $4.50 per share.

The surge in revenue comes amid a period of strategic repositioning under CEO David Solomon, who has refocused the firm following a failed foray into consumer banking. Goldman has improved its trading operations and expanded its investment-banking share. It is one of the last major U.S. banks to release fourth-quarter results after JPMorgan Chase & Co., Bank of America Corp., and others.

Goldman’s asset- and wealth-management business also saw strong performance. The unit posted a quarterly record in fees and set a target for a 30% pretax margin in the medium term. This segment is growing through acquisitions, including ETF issuer Innovator Capital and venture capital firm Industry Ventures.

Why Did This Happen?

The record performance was driven by a combination of market volatility and strategic shifts. Goldman capitalized on uncertainty around the Federal Reserve’s interest-rate path and rising AI-related speculation. Fixed-income, currencies, and commodities (FICC) trading revenue rose 12.5% to $3.11 billion.

A key factor was the bank’s decision to offload its Apple Card portfolio to JPMorgan Chase & Co. The move generated a one-time gain and a 46-cent-per-share boost to earnings. It also allowed the firm to step back from the consumer-lending space, which had previously posed risks.

How Did Markets React?

Goldman’s results were met with cautious optimism. While the firm’s non-GAAP earnings per share of $14.01 exceeded expectations, its revenue of $13.45 billion missed estimates by $400 million. The decline was partly due to markdowns on its Apple Card portfolio, offset by gains in its Global Banking & Markets division.

Analysts highlighted that the bank’s investment-banking fees grew to $2.58 billion in the fourth quarter, a new record. Goldman finished 2025 with $58.3 billion in net revenue, its second-best annual performance on record.

The firm’s wealth and asset-management arm is growing rapidly and is seen as a stabilizing force for the business. Goldman expects this division to achieve high-teens returns, up from mid-teens, in the medium term.

What Are Analysts Watching Next?

Investors are closely watching whether Goldman can maintain its momentum in 2026. The bank’s performance in Q4 2025 exceeded expectations, but analysts have revised earnings forecasts downward. The average consensus estimate now sits at $11.37 per share for Q4 2025.

A key concern is whether investment banking fees will continue to grow. Goldman led the global M&A market in 2025, advising on $1.48 trillion in deals and collecting $4.6 billion in fees. However, the firm must now contend with softer debt-underwriting results seen at JPMorgan and others.

Trading revenue is another critical area. Goldman’s equities-trading revenue in 2025 was $4.31 billion, but analysts expect the business to face tougher comparisons in 2026. Sustaining high levels of performance will depend on continued market volatility and strong client demand.

Compensation costs also remain a focus. The bank’s operating leverage in 2025 allowed it to generate strong returns, but investors will be watching whether expenses rise in 2026. A compensation ratio above 32% of net revenue would raise concerns about margin pressure.

Goldman’s next challenge is to balance its core trading and investment-banking businesses with the growth of its asset and wealth-management division. The firm has positioned the latter as a stabilizing force amid market swings. Sustained performance in that area will be crucial for long-term value creation.