Goldman Sachs Shares Plummet 6% on Q4 Miss

Goldman Sachs (NYSE:GS) reported second-quarter earnings that topped Wall Street expectations, driven by a surge in trading and investment banking activity.

The firm posted earnings per share of $10.91, beating analyst estimates of $9.59. Revenue climbed 15% from the prior year to $14.58 billion, ahead of the $13.51 billion consensus.

The standout performer was Goldman’s Global Banking & Markets division, which generated $10.12 billion in revenue—a 24% increase year-over-year. Investment banking fees rose 26% to $2.19 billion, while equities trading revenue surged 36% to $4.30 billion. Fixed Income, Currency, and Commodities (FICC) revenue also contributed, rising 9% to $3.47 billion.

Asset and Wealth Management was the lone soft spot, with revenue falling 3% to $3.78 billion due to lower returns from equity and debt investments. However, this was partially offset by stronger management and advisory fees.

CEO David Solomon credited the results to robust client engagement and the firm’s positioning across markets. He also noted that the broader economy is responding well to shifts in the policy environment, providing a tailwind for Goldman’s core businesses.

The Goldman Sachs Group, Inc. (NYSE: GS) is a leading global investment banking, securities, and investment management firm. It offers a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments, and individuals. The company operates in four main segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. Goldman Sachs competes with other financial giants like Morgan Stanley and JPMorgan Chase.

Over the past year, Goldman Sachs has experienced a significant increase in its consensus price target, rising from $575.27 to $750. This suggests growing optimism among analysts about the company's future performance. Despite this, Oppenheimer has set a more conservative price target of $463, as highlighted by CNBC. This indicates a positive outlook, albeit more cautious than the consensus.

Goldman Sachs' diverse range of financial services and strong market presence contribute to analysts' confidence. The company is preparing to release its second-quarter earnings, focusing on market-making, IPOs, and lending activities. These areas have been performing well, although there are concerns about rising expenses potentially impacting results, as noted by Zacks.

Investors should monitor Goldman Sachs' upcoming earnings report, as the company has a history of surpassing earnings expectations. Wall Street analysts, according to LSEG, anticipate earnings per share of $9.53 and revenue of $13.47 billion. This track record of exceeding estimates suggests potential for positive surprises in the upcoming report.

Additionally, broader market trends and economic conditions will play a crucial role in influencing Goldman Sachs' stock performance. Regional bank consolidation, as discussed by Dory Wiley on CNBC, could impact the financial landscape. Investors should stay informed about these developments to better understand their potential effects on Goldman Sachs and its stock value.

Goldman Sachs (NYSE:GS) is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base, including corporations, financial institutions, governments, and individuals. As a major player in the financial industry, Goldman Sachs competes with other giants like JPMorgan Chase and Morgan Stanley.

On July 16, 2025, Goldman Sachs is set to release its quarterly earnings. Wall Street estimates the earnings per share (EPS) to be $9.37, while the revenue is projected to be approximately $13.53 billion. However, analysts anticipate the company to report a slightly higher EPS of $9.43, marking a 9.4% increase from the same period last year. The projected revenue of $13.5 billion represents a 6.1% year-over-year growth.

Goldman Sachs's investment banking revenues are likely to have been bolstered by strong mergers and acquisitions activity. Additionally, the firm's net interest income for the quarter is projected to increase by 28.3%, driven by robust loan demand and stable interest rates. Despite a recent 0.1% decline in share price, the company plans to increase its common stock dividend from $3.00 to $4.00 per share starting July 1.

In the first quarter of 2025, Goldman Sachs experienced significant growth in its Global Banking & Markets division. However, there were concerns due to a decline in the investment banking sector and rising expenses. Despite these challenges, Goldman Sachs has a strong track record of exceeding earnings expectations, having surpassed the Zacks Consensus Estimate in the last four quarters with an average earnings surprise of 20.74%.

Goldman Sachs's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 15.38, indicating the market's valuation of its earnings. The price-to-sales ratio stands at about 1.73, suggesting how much investors are willing to pay per dollar of sales. However, the enterprise value to operating cash flow ratio is negative at -29.51, which may indicate challenges in cash flow generation relative to its valuation.

Goldman Sachs (NYSE:GS) is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base, including corporations, financial institutions, governments, and individuals. The company competes with other major financial institutions like JPMorgan Chase and Morgan Stanley.

On April 14, 2025, Goldman Sachs reported impressive first-quarter earnings, with earnings per share (EPS) of $14.12, surpassing the estimated $12.33. This strong performance was accompanied by revenue of approximately $15.06 billion, exceeding the forecasted $14.77 billion. The positive results led to a 2.5% increase in the stock price, reaching $506.83, as highlighted by Schaeffer's Research.

The company's robust performance was driven by strong revenues from its equity and fixed income, currencies, and commodities (FICC) divisions. The CEO noted a "markedly different operating environment" as the company moves into the second quarter. Additionally, Goldman Sachs announced a significant $40 billion stock buyback, which likely contributed to the positive market reaction.

Goldman Sachs' financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 11.35, indicating investor confidence in its earnings potential. Its price-to-sales ratio stands at about 2.92, reflecting the market's valuation of its revenue. However, the enterprise value to operating cash flow ratio is negative at -23.97, suggesting challenges in cash flow generation.

The company's debt-to-equity ratio is about 2.81, indicating a higher reliance on debt to finance its assets compared to shareholders' equity. Despite this, Goldman Sachs' earnings yield of approximately 8.81% offers a perspective on the return on investment, showcasing its ability to generate profits relative to its share price.

Goldman Sachs (NYSE:GS) is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base, including corporations, financial institutions, governments, and individuals. The company competes with other major financial institutions like JPMorgan Chase and Morgan Stanley.

On April 14, 2025, Goldman Sachs reported impressive first-quarter earnings, with earnings per share (EPS) of $14.12, surpassing the estimated $12.33. This strong performance was accompanied by revenue of approximately $15.06 billion, exceeding the forecasted $14.77 billion. The positive results led to a 2.5% increase in the stock price, reaching $506.83, as highlighted by Schaeffer's Research.

The company's robust performance was driven by strong revenues from its equity and fixed income, currencies, and commodities (FICC) divisions. The CEO noted a "markedly different operating environment" as the company moves into the second quarter. Additionally, Goldman Sachs announced a significant $40 billion stock buyback, which likely contributed to the positive market reaction.

Goldman Sachs' financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 11.35, indicating investor confidence in its earnings potential. Its price-to-sales ratio stands at about 2.92, reflecting the market's valuation of its revenue. However, the enterprise value to operating cash flow ratio is negative at -23.97, suggesting challenges in cash flow generation.

The company's debt-to-equity ratio is about 2.81, indicating a higher reliance on debt to finance its assets compared to shareholders' equity. Despite this, Goldman Sachs' earnings yield of approximately 8.81% offers a perspective on the return on investment, showcasing its ability to generate profits relative to its share price.

• Analysts have recently adjusted the average price target for Goldman Sachs (NYSE:GS) to $577.67, indicating a positive yet cautious short-term outlook.
• Oppenheimer sets a conservative price target of $463, reflecting concerns over market volatility and economic uncertainties.
• The sentiment around Goldman Sachs has seen fluctuations, with the average price target adjusting from $598 three months ago to $577.67 now, amidst economic uncertainties and potential impacts on the banking sector.

The Goldman Sachs Group, Inc. (NYSE: GS) is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments, and individuals. As a major player in the financial sector, Goldman Sachs competes with other big banks like JPMorgan Chase, Morgan Stanley, and Wells Fargo.

In the past month, analysts set an average price target of $577.67 for Goldman Sachs, reflecting optimism about the company's short-term performance. This optimism may be linked to the anticipation of the company's upcoming earnings report, as highlighted by Benzinga. However, Oppenheimer has set a more conservative price target of $463, suggesting a cautious outlook amidst market volatility.

Three months ago, the average price target for Goldman Sachs was $598, indicating a more bullish sentiment at that time. The recent downward adjustment in price targets could be influenced by ongoing economic uncertainties, such as the potential impact of tariffs on banks' profitability, as noted by Morningstar's Suryansh Sharma. This shift in sentiment underscores the importance of monitoring economic developments and their potential effects on the financial sector.

A year ago, the average price target for Goldman Sachs was $499.05, showing a significant increase over the year. This upward trend suggests that analysts have generally become more positive about the company's growth prospects. However, the recent downgrade from a "buy" to a "sell" rating, as reported by Oppenheimer, indicates that the outlook has changed due to concerns about lower economic growth and its impact on Goldman Sachs' revenue streams.

As Goldman Sachs prepares to release its first-quarter earnings, investors are closely watching for any developments that could influence the stock's trajectory. The company's performance will be scrutinized in the context of broader market trends and economic conditions, including the potential for a recession as highlighted by JPMorgan Chase CEO Jamie Dimon. With Oppenheimer's price target set at $463, investors are considering strategic positions in GS to navigate the current economic landscape.

• Analysts have recently adjusted the average price target for Goldman Sachs (NYSE:GS) to $577.67, indicating a positive yet cautious short-term outlook.
• Oppenheimer sets a conservative price target of $463, reflecting concerns over market volatility and economic uncertainties.
• The sentiment around Goldman Sachs has seen fluctuations, with the average price target adjusting from $598 three months ago to $577.67 now, amidst economic uncertainties and potential impacts on the banking sector.

The Goldman Sachs Group, Inc. (NYSE: GS) is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments, and individuals. As a major player in the financial sector, Goldman Sachs competes with other big banks like JPMorgan Chase, Morgan Stanley, and Wells Fargo.

In the past month, analysts set an average price target of $577.67 for Goldman Sachs, reflecting optimism about the company's short-term performance. This optimism may be linked to the anticipation of the company's upcoming earnings report, as highlighted by Benzinga. However, Oppenheimer has set a more conservative price target of $463, suggesting a cautious outlook amidst market volatility.

Three months ago, the average price target for Goldman Sachs was $598, indicating a more bullish sentiment at that time. The recent downward adjustment in price targets could be influenced by ongoing economic uncertainties, such as the potential impact of tariffs on banks' profitability, as noted by Morningstar's Suryansh Sharma. This shift in sentiment underscores the importance of monitoring economic developments and their potential effects on the financial sector.

A year ago, the average price target for Goldman Sachs was $499.05, showing a significant increase over the year. This upward trend suggests that analysts have generally become more positive about the company's growth prospects. However, the recent downgrade from a "buy" to a "sell" rating, as reported by Oppenheimer, indicates that the outlook has changed due to concerns about lower economic growth and its impact on Goldman Sachs' revenue streams.

As Goldman Sachs prepares to release its first-quarter earnings, investors are closely watching for any developments that could influence the stock's trajectory. The company's performance will be scrutinized in the context of broader market trends and economic conditions, including the potential for a recession as highlighted by JPMorgan Chase CEO Jamie Dimon. With Oppenheimer's price target set at $463, investors are considering strategic positions in GS to navigate the current economic landscape.