The Goldman Sachs Group (NYSE:GS) Issues Earnings Results, Beats Expectations By $2.49 EPS

The Goldman Sachs Group (NYSE:GS) posted its quarterly earnings results on Thursday. The investment management company reported $14.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $11.52 by $2.49, Zacks reports. The firm had revenue of $13.45 billion during the quarter, compared to analyst estimates of $14.30 billion. The Goldman Sachs Group had a net margin of 13.18% and a return on equity of 15.29%. The company’s quarterly revenue was down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $11.95 earnings per share.

Here are the key takeaways from The Goldman Sachs Group’s conference call:

• Goldman reported strong results with Q4 EPS $14.01 and FY EPS $51.32 (up 27% YoY), and returns of ROE 16% (Q4) and ROTE 17.1%, signaling meaningful earnings and return improvement for 2025.
• The firm said it materially strengthened its balance sheet and funding profile—principal investments down >90% to $6B, a 320 bps improvement in its CCAR stress buffer, deposits of $501B (~40% of funding) and CET1 of 14.4%—reducing risk and increasing capital flexibility.
• Franchise momentum: Goldman remains the #1 M&A advisor (23 years), advised on >$1.6T of announced M&A in 2025, reported a four‑year high backlog, and grew AWM (raised a record $115B in alternatives) with new targets including a 30% pre‑tax margin and $750B fee‑paying alternative AUS by 2030.
• The firm announced an agreement to transition the Apple Card portfolio—the Q4 move added $0.46 to EPS (via a $2.5B reserve release) but management expects the platform to run a small pre‑tax loss during the transition and the Apple Savings program was not part of the deal.
• Management launched One Goldman Sachs 3.0 to drive AI‑led efficiency across six work streams, aiming to free capacity for growth and productivity gains, but material outcomes and metrics will be disclosed over the coming year and remain unquantified today.

The Goldman Sachs Group Stock Performance

GS stock opened at $975.01 on Friday. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 2.53. The Goldman Sachs Group has a twelve month low of $439.38 and a twelve month high of $981.26. The business’s fifty day moving average is $865.06 and its 200-day moving average is $790.69. The company has a market cap of $292.43 billion, a P/E ratio of 19.81, a price-to-earnings-growth ratio of 0.99 and a beta of 1.33.

The Goldman Sachs Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 30th. Shareholders of record on Monday, March 2nd will be given a dividend of $4.50 per share. This represents a $18.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Monday, March 2nd. This is a positive change from The Goldman Sachs Group’s previous quarterly dividend of $4.00. The Goldman Sachs Group’s dividend payout ratio is presently 32.50%.

Analyst Upgrades and Downgrades

GS has been the subject of several analyst reports. Royal Bank Of Canada raised their target price on The Goldman Sachs Group from $843.00 to $900.00 and gave the stock a “sector perform” rating in a research report on Friday, December 12th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of The Goldman Sachs Group from $725.00 to $790.00 and gave the company a “hold” rating in a research note on Tuesday, September 30th. BMO Capital Markets increased their target price on shares of The Goldman Sachs Group from $785.00 to $980.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 6th. BNP Paribas Exane upped their price objective on shares of The Goldman Sachs Group from $685.00 to $775.00 and gave the stock a “neutral” rating in a research note on Friday, October 17th. Finally, Wells Fargo & Company boosted their price objective on shares of The Goldman Sachs Group from $970.00 to $1,050.00 and gave the stock an “overweight” rating in a research report on Thursday. Six equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $859.63.

Institutional Trading of The Goldman Sachs Group

Several hedge funds have recently bought and sold shares of the stock. Graney & King LLC boosted its stake in shares of The Goldman Sachs Group by 51.5% in the 2nd quarter. Graney & King LLC now owns 50 shares of the investment management company’s stock worth $35,000 after buying an additional 17 shares during the last quarter. JPL Wealth Management LLC purchased a new stake in shares of The Goldman Sachs Group during the third quarter valued at approximately $50,000. Johnson Financial Group Inc. lifted its holdings in The Goldman Sachs Group by 70.9% during the third quarter. Johnson Financial Group Inc. now owns 188 shares of the investment management company’s stock worth $150,000 after acquiring an additional 78 shares during the period. Vivaldi Capital Management LP purchased a new position in The Goldman Sachs Group in the second quarter worth $205,000. Finally, McIlrath & Eck LLC boosted its position in The Goldman Sachs Group by 337.9% in the second quarter. McIlrath & Eck LLC now owns 289 shares of the investment management company’s stock worth $205,000 after purchasing an additional 223 shares during the last quarter. 71.21% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting The Goldman Sachs Group

Here are the key news stories impacting The Goldman Sachs Group this week:

• Positive Sentiment: Q4 EPS materially beat expectations (reported $14.01 vs. ~ $11.5 consensus), driving upside to profitability despite mixed top-line timing. Goldman Sachs Q4 earnings top estimates on strong trading, investment banking performance
• Positive Sentiment: Equities trading set a Wall Street record (~$4.31B in Q4), supporting outsized revenue from markets businesses and boosting near-term earnings power. Goldman Sachs Q4 earnings: equities trading sets Wall Street record at $4.31B
• Positive Sentiment: Board raised the quarterly dividend to $4.50 (12.5% hike), increasing the yield and signaling confidence in capital return capacity. Goldman Sachs Posts Strong 2025 Results, Raises Dividend
• Positive Sentiment: Wells Fargo lifted its price target to $1,050, providing additional analyst support after the report. Wells Fargo raises Goldman Sachs price target to $1,050
• Neutral Sentiment: Management flagged exploratory interest in prediction markets — a possible long‑term franchise/innovation avenue but currently speculative for near-term earnings. Goldman Sachs CEO is looking at how the Wall Street bank can get involved in prediction markets
• Neutral Sentiment: Goldman launched a multi‑tranche dollar bond sale (3–21 year maturities) after earnings — routine funding/liquidity action that modestly increases supply but supports balance‑sheet flexibility. Goldman, Wells Fargo kick off dollar-bond sales after earnings
• Negative Sentiment: Revenue missed some street forecasts as accounting effects from the Apple Card exit reduced reported revenue (~$2.3B), creating headline risk even though it boosted reported profit. Goldman Sachs’ profit rises on dealmaking, trading strength
• Negative Sentiment: Third‑party reports note a sharp drop in operating cash flow and continued insider share sales; these items raise governance/liquidity questions that could temper sentiment if they persist. Goldman Sachs Group Inc. Releases Q4 2025 Earnings: Revenue and EPS Beat; Operating Cash Flow Plunges

About The Goldman Sachs Group

The Goldman Sachs Group, Inc is a global investment banking and financial services firm headquartered in New York City. Founded in 1869 as a commercial paper business, the company has grown into a diversified financial institution that provides a broad range of services to corporations, financial institutions, governments and individuals. The firm is led by Chief Executive Officer David M. Solomon and operates across major financial centers worldwide.

Goldman Sachs’ core businesses include investment banking, global markets, asset and wealth management, and consumer banking.