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Goldman Sachs (GS) delivered a robust performance in 2Q25, reporting net revenues of $14.58 bln, reflecting a strong 14.5% yr/yr increase that comfortably surpassed the FactSet consensus estimates of $13.51 bln. EPS came in at $10.91, also easily beating analyst expectations of $9.65, marking the fourth consecutive quarter where GS has crushed earnings estimates. The standout performers were the Advisory and equity trading businesses, which drove significant top-line growth. Adding to the positive takeaways, GS announced a 33% increase in its quarterly dividend to $4.00 per share, signaling confidence in its strong cash flow generation and commitment to returning capital to shareholders.

• The Global Banking & Markets (GBM) segment, GS’s largest revenue driver, posted a remarkable 24% yr/yr revenue increase to $10.12 bln, accounting for approximately 69% of the firm’s total revenue. Within this segment, investment banking fees surged 26% to $2.19 bln, with Advisory services emerging as the clear standout, generating $1.17 bln in net revenues, a 71% yr/yr increase.
• This exceptional growth was fueled by GS’s continued dominance in mergers and acquisitions (M&A), where it maintained its position as the #1 advisor in completed M&A transactions in Q2. The surge in Advisory revenue reflects heightened client activity in a favorable dealmaking environment, supported by improving CEO confidence and a robust backlog of transactions, particularly in North America.
• The trading unit within the GBM segment also contributed significantly to the quarter’s strength. Equities trading revenue soared 36% yr/yr to a record $4.3 bln, driven by strong performance in both intermediation and financing activities. This growth was propelled by turbulent market conditions, partly attributed to U.S. trade policy shifts, which increased client demand for risk management and portfolio adjustments.
• Fixed Income, Currency, and Commodities (FICC) trading revenue posted solid growth of 9% to $3.47 bln, with higher revenues in financing activities serving as the primary driver. While FICC growth was more modest compared to equities, it reflects GS’s ability to navigate volatile markets effectively, leveraging its position as a top-tier player in FICC.
• In contrast, the Asset & Wealth Management (AWM) segment was a relative laggard, with revenues declining 3% yr/yr to $3.78 bln. This decrease was entirely attributable to a 72% plunge in debt investments, which weighed heavily on the segment’s overall performance. However, other areas of AWM showed resilience, with asset management fees rising 10% to $1.2 bln and wealth management fees increasing 11% to $1.59 bln.
• The growth in asset management fees was driven by record Assets Under Supervision (AUS) of $3.29 trillion, reflecting GS’s ability to attract and retain institutional and high-net-worth clients. Wealth management fee growth was supported by strong demand for GS’s premier ultra-high-net-worth services, bolstered by its client-centric approach and diversified offerings in alternatives.

GS’s Q2 results reaffirm its status as a top-flight financial bellwether, driven by exceptional performance in its Global Banking & Markets segment, particularly in Advisory and equities trading. The firm’s ability to consistently surpass EPS expectations, coupled with robust revenue growth and a significant dividend increase, underscores its financial strength and strategic focus on high-value, client-driven businesses.