Goldman Sachs Beats Q2 Earnings Forecasts

Core Insights - Goldman Sachs Group reported Q2 2025 results with GAAP revenue of $14.58 billion and diluted EPS of $10.91, both exceeding analyst expectations [1][2] - Year-over-year, total net revenues increased by 15% and EPS rose by 26.6% [1][2] - The firm raised its quarterly dividend to $4.00 per share, reflecting strong capital returns [1] Financial Performance - Q2 2025 GAAP revenue was $14.58 billion, surpassing the estimate of $13.51 billion, and up from $12.73 billion in Q2 2024, marking a 14.6% increase [2] - GAAP EPS reached $10.91, exceeding the forecast of $9.65 and up from $8.62 in Q2 2024, a 26.6% increase [2] - Net earnings for Q2 2025 were $3.72 billion, a 22.4% increase from $3.04 billion in Q2 2024 [2] Business Segments Overview - The Global Banking & Markets segment saw net revenues rise 24% year-over-year to $10.12 billion, with advisory revenue increasing by 71% to $1.17 billion [5] - Equity underwriting revenue remained flat at $428 million, while debt underwriting declined by 5% to $589 million [5] - FICC trading generated $3.47 billion in net revenues, up 9% year-over-year but down 21% from the previous quarter [6] Asset & Wealth Management - Net revenues in Asset & Wealth Management were $3.78 billion, down 3% from the prior year, primarily due to a 72% decline in debt investment returns [7] - Management and other fees rose 11% to $2.81 billion, and private banking and lending revenue increased by 12% to $789 million [7] - Assets Under Supervision reached a record $3.29 trillion, up 12% compared to Q2 2024 [7] Operating Expenses and Capital Management - Operating expenses rose 8% year-over-year to $9.24 billion, driven by higher compensation and benefits [10] - The Common Equity Tier 1 (CET1) capital ratio was 14.5%, slightly lower than the previous year but above regulatory requirements [11] - The firm repurchased 5.3 million shares for $3.0 billion, with total capital return to shareholders amounting to $3.96 billion [11] Future Outlook - Management noted an increase in the investment banking backlog, indicating solid momentum for advisory and underwriting businesses [13] - No specific financial guidance was provided for the next quarter or fiscal 2025 [13]