Goldman Sachs earnings show 2025 was a great year for the rich

Core Insights - Goldman Sachs reported a net revenue of $58.3 billion and net earnings of $17.2 billion for the full year 2025, with earnings per share at $51.32, driven largely by its asset and wealth management business [2][3] - Assets under supervision increased by $469 billion year-over-year, reaching $3.61 trillion, indicating strong growth from rising markets and continued inflows [2] - The firm returned $12.4 billion in buybacks and $4.4 billion in dividends to shareholders in 2025, with a 12.5% increase in quarterly dividends to $4.50 per share announced for Q1 2026 [3] Performance Comparison - Total shareholder returns for Goldman Sachs have exceeded 340% since its 2019 investor day, significantly outperforming the S&P 500's return of approximately 130% during the same period [4] - The company's focus on transparency and segment reporting has contributed to its success in creating shareholder wealth [4] Economic Context - The results reflect a broader economic trend where access to capital and high-end financial services disproportionately benefits the wealthy, highlighting the ongoing "K-shaped economy" where the rich continue to accumulate wealth [5][6] - The financial gains seen by lower-income households during the pandemic have diminished, reinforcing the disparity in wealth accumulation [5]