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Goldman Sachs (GS) continued the financial sector’s strong streak, easily beating earnings expectations for Q4. Results were fueled by robust performances from the Global Banking & Markets division, particularly in investment banking and trading. While net revenues declined 3.0% yr/yr, this was primarily due to the transfer of the Apple Card portfolio to JPMorgan Chase (JPM).

• EPS reached $14.01, a 17% increase from the $11.95 reported in the prior year period. EPS was bolstered by a $2.12 bln net benefit to provision for credit losses, primarily driven by the release of $2.48 bln in loan loss reserves following the finalized agreement to transfer the Apple Card portfolio.
• The 3.0% yr/yr decline in total net revenues to $13.45 bln was largely due to a $2.26 bln markdown in Platform Solutions related to the Apple Card transfer. This transaction effectively ends GS’s major foray into consumer lending, allowing a return to its core competencies.
• Global Banking & Markets net revenues surged 22% yr/yr to $10.41 bln. Within this segment, investment banking fees rose 25% to $2.58 bln, advisory revenue jumped 41% to $1.36 bln, driven by a resurgence in global M&A activity, Equity underwriting increased 4% to $521 mln, and equities net revenues grew 25% to a record $4.31 bln, fueled by strong performance in intermediation and financing.
• Asset & Wealth Management net revenues were $4.72 bln, essentially unchanged yr/yr. While management fees increased due to higher average assets under supervision, they were offset by significantly lower gains from private and public equity investments.
• The firm increased its quarterly dividend by 12.5% to $4.50 per common share, effective for 1Q26.

Briefing.com Analyst Insight:

GS delivered an impressive headline EPS beat to close out 2025, but the quality of the earnings is complicated by the Apple Card exit. The $2.12 bln credit reserve release provided a significant one-time cushion to the bottom line, essentially offsetting the revenue markdowns from the portfolio transfer. Stripping away these accounting maneuvers, the organic story is one of a powerful M&A and capital markets recovery. GS’s dominant position in global advisory and a record quarter in equities trading suggest it is the primary beneficiary of the "thawing" IPO and private equity markets. While the retreat from consumer banking marks the end of a costly experiment, it streamlines the firm's profile as a high-margin, capital-efficient leader in institutional banking and wealth management.