Goldman Sachs (NYSE: GS) delivered better-than-expected first-quarter results, fueled by record revenue from its equities trading division as market volatility surged amid investor reactions to U.S. tariff developments. However, the bank cautioned that the current quarter is unfolding in a significantly different operating environment.
Net revenue rose 6% year-over-year to $15.06 billion, topping consensus estimates of $14.76 billion. The performance was driven largely by a 27% YoY increase in equities trading revenue, which reached an all-time high of $4.19 billion. Analysts pointed to heightened market activity linked to tariff-related uncertainty as a key driver.
Despite the strong trading performance, Goldman’s investment banking division saw pressure, with advisory fees declining 8% to $1.91 billion as dealmaking activity softened amid economic and geopolitical uncertainty.
Fixed income revenue rose 2% to $4.40 billion, supported by strength in mortgages and structured lending.
Diluted earnings per share came in at $14.12, well ahead of the $12.26 forecast. The upside surprise was driven in part by lower-than-expected provisions for credit losses.
While Goldman outperformed on key financial metrics, the bank noted that evolving market conditions and broader macro headwinds could create a more challenging backdrop in the months ahead.
Goldman Sachs (NYSE: GS) currently holds an average “Overweight” rating, with a consensus price target of $613.15, suggesting a potential upside of more than 21% from its current price.
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