Goldman Sachs profit jumps 78% as trading drives record Q2
Goldman Sachs reported a 78% surge in second-quarter profit as a roaring trading and dealmaking environment validates its strategy to refocus on its core Wall Street franchise.
Goldman Sachs posted net earnings of $6.63bn in the second quarter of 2026, up 78.2% from the same period a year earlier. Net revenue climbed 39.5% to $20.34bn, driven by a broad recovery in capital markets activity. The results underscore a dramatic turnaround for the bank's core institutional business.
Global Banking & Markets was the primary engine, generating $15.52bn in revenue, a 53% year-on-year increase that signals a robust environment for major transactions. Asset & Wealth Management also contributed solidly, with revenue rising 20% to $4.6bn. Assets under supervision reached $4.04tn, bolstered by $230bn in net inflows and $161bn in market appreciation, while Platform Solutions revenue plummeted 64% to $221m.
The bank aggressively returned capital to shareholders, distributing $5.36bn in the quarter. This included $4bn in share buybacks, covering 4.1 million shares at an average price of $984.57, alongside $1.36bn in dividends. For the first half of the year, net revenue reached $37.57bn and net profit totaled $12.26bn.
Higher activity brought higher costs, with operating expenses rising 26% to $11.67bn. The increase was driven by transaction-based expenses and sharply higher compensation and benefits, though the bank reduced its headcount by 2% from the first quarter. Credit quality improved markedly, with the provision for credit losses falling to $102m from $384m a year earlier, largely due to the sale of its credit card portfolio in late 2025.
Chief Executive David Solomon said the record performance highlights the strength of the firm's global franchise and client relationships. He noted that clients are relying on Goldman for strategic transactions, creating a "flywheel of activity" that the bank expects to persist based on current pipelines. The elevation of M&A head Stephan Feldgoise and global risk head Joshua Schiffrin to the management committee in May signals an intensified focus on capturing this dealmaking surge, while Ericka Leslie was named chief administrative officer.
