Goldman Sachs Investment Banking To Grow 15% In 2026: Analyst

Core Viewpoint - Goldman Sachs Group, Inc. reported mixed fourth-quarter results for fiscal 2025, primarily impacted by markdowns and exit costs related to its consumer platform [1] Financial Performance - Net revenue decreased by 3% year over year to $13.45 billion, falling short of the consensus estimate of $13.79 billion [2] - GAAP earnings rose to $14.01 per share, an increase from $11.95 a year ago, surpassing the consensus estimate of $11.65 [2] Analyst Insights - Positive EPS revisions have been a key driver of stock performance, with Goldman exceeding consensus EPS estimates by approximately 15% on average over the last four quarters [3] - The company is positioned for potentially stronger-than-expected EPS growth in 2026 [3] Market Conditions - The analyst highlights solid quarterly results, increased momentum in M&A and IPO activity, a favorable regulatory environment, and management's focus on consistent growth and profitability as supportive factors [4] - For fiscal year 2026, a 15% growth in investment banking and a 3% growth in markets are projected, contingent on the absence of major macroeconomic shocks [5] Revenue Contributions - Investment banking, while contributing only about 15% to total revenues, generates additional revenue opportunities across financing, trading, and wealth management [6] - Fiscal year 2026 EPS estimates have been raised to $58.64 from $57.30, while fiscal year 2027 EPS remains unchanged at $67.30, which is 8.1% above consensus [6] Stock Performance - Goldman Sachs shares were down 1.15% at $964.60, trading near its 52-week high of $981.25 [7]