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    GS
    Earnings call· Mar 2026(Q1 FY26)

    GOLDMAN SACHS GROUP Q1 FY26 earnings call GS

    Apr 13, 2026 Source

    Executive summary

    Goldman Sachs Q1 FY26 — Record Global Banking & Markets Revenues Drive Strong Performance

    Goldman Sachs delivered a very strong first quarter, driven by record performance in Global Banking & Markets and consistent inflows in Asset & Wealth Management. The firm navigated a dynamic macro environment marked by increased volatility and geopolitical concerns, leveraging its diversified franchise and strategic investments in technology. Management remains confident in its long-term growth trajectory and ability to support clients while returning capital to shareholders.

    Highlights

    5

    • Net revenues of $17.2 billion, net earnings of $5.6 billion, and EPS of $17.55, all second highest in firm history.

    • Global Banking & Markets achieved record revenues of $12.7 billion, driving an ROE of over 22%.

    • Asset & Wealth Management generated $62 billion in long-term fee-based inflows, marking the 33rd consecutive quarter of positive inflows.

    • The firm returned $6.4 billion to common shareholders, including a record $5 billion in common stock repurchases.

    • Equities net revenues reached a record $5.3 billion, with financing revenues up 59% year-over-year.

    Concerns

    4

    • Platform Solutions revenues decreased year-over-year to $411 million due to the Apple portfolio's reclassification to held for sale.

    • Private banking and lending revenues were impacted by net interest margin compression, offsetting higher lending results.

    • FICC intermediation revenues in rates and mortgages were significantly lower year-over-year due to a tougher market-making backdrop.

    • IPO and sponsor activity remained tempered, despite a robust M&A backlog.

    Guidance & targets

    5
    CategoryTargetConfidence
    Platform Solutions revenues
    run lower
    medium materiality
    High
    Effective tax rate
    approximately 20%
    medium materiality
    High
    Private banking and lending segment growth
    high double digits
    medium materiality
    Medium
    Aggregate Assets Under Supervision (AUS)
    $750 billion
    high materiality
    High
    Annual alternatives fundraising
    $75 billion to $100 billion
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Global Banking & Markets
    Record quarterly revenues, reflecting strong client engagement across our franchise.
    Advisory revenues: $1.5 billion, up 89% YoYEquity underwriting revenues: $535 million, up 45% YoYDebt underwriting revenues: $811 million, up 8% YoYFICC net revenues: $4 billionFICC financing revenues: $1.1 billionEquities net revenues: $5.3 billionEquities intermediation revenues: $2.7 billion, up 7%Equities financing revenues: $2.6 billion, up 59% YoYFICC and equities financing revenues: $3.7 billion, up 36% YoY, 40% of total FICC and equities revenues
    		$12.7 billion——ROE over 22%
    Asset & Wealth Management
    Clients continue to choose Goldman Sachs for the quality of advice and investment track record.
    Management and other fees: $3.1 billion, up 14% YoYIncentive fees: $183 million, up YoYPrivate banking and lending revenues: $638 millionLending to ultra-high net worth clients: $46 billion (record)Total assets under supervision: $3.7 trillion (record)Long-term net inflows: $62 billionAlternative AUS: $429 billionAlternatives management and other fees: $597 millionGross third-party alternatives fundraising: $26 billion
    		$4.1 billion———
    Platform Solutions
    Reflecting the move of the Apple portfolio to held for sale.
    		$411 milliondown year-over-year——

    Operational metrics

    23
    Net revenues
    $17.2 billionsecond highest in history
    Q1 FY26
    Net earnings
    $5.6 billionsecond highest in history
    Q1 FY26
    Diluted EPS
    $17.55second highest in history
    Q1 FY26
    Return on equity (ROE)
    19.8%
    Q1 FY26
    Return on tangible equity (ROTE)
    21.3%
    Q1 FY26
    Total operating expenses
    $10.4 billion
    Q1 FY26
    Efficiency ratio
    60.5%
    Q1 FY26
    Compensation ratio net of provisions
    32%
    Q1 FY26
    Non-compensation expenses
    $5 billion
    Q1 FY26
    Effective tax rate
    13.2%
    Q1 FY26
    Total loan portfolio
    $253 billionup versus the fourth quarter
    Q1 FY26
    Provision for credit losses
    $315 million
    Q1 FY26
    Common Equity Tier 1 ratio (standardized)
    12.5%
    Q1 FY26
    Capital returned to common shareholders
    $6.4 billion
    Q1 FY26
    Common stock repurchases
    $5 billionrecord
    Q1 FY26
    Common stock dividends
    $1.4 billion
    Q1 FY26
    Marquee monthly average users
    up over 30%year-over-year
    Q1 FY26
    Private credit industry assets (broadest definition)
    $3.5 trillion
    null
    Direct lending assets
    $1.6 trillion to $1.7 trillion
    null
    Retail channel direct lending NAV
    $230 billion
    null
    GS credit BDC Q1 2026 subscriptions from institutions
    40%
    Q1 FY26
    FICC financing activities life-to-date realized losses (excluding direct CRE)
    0
    life-to-date
    Private equity-owned companies enterprise value
    $4 trillion
    null

    Industry KPIs

    4
    MetricValueDetails
    AUM$3.7 trillionUSD
    Fundraising inflows$62 billionUSD
    Performance revenue$183 millionUSD
    Deployment realizations$10 billionUSD

    Product announcements

    1
    ProductTypeDetails
    Innovator acquisitionexpansion

    Deals & partnerships

    4
    Innovatoracquisition

    Acquisition of Innovator, which adds $31 billion in AUS across over 170 ETFs focused on defined outcome strategies.

    McCormickmerger$43 billion

    Announced merger of Unilever's food business with McCormick, advised by Goldman Sachs.

    Jetro Restaurant Depotacquisition$29 billion

    Sysco's acquisition of Jetro Restaurant Depot, advised by Goldman Sachs.

    Devon Energydivestiture$26 billion

    Cortera Energy's sale to Devon Energy, advised by Goldman Sachs.

    Risks & headwinds

    6
    Macro environment and geopolitical uncertaintyas the quarter progressed

    volatility increased meaningfully with concerns around AI-driven disruption, sectors like software, heightened uncertainty in parts of private credit and the conflict in the Middle East

    Mitigation: diversified and global franchise that can support clients across a wide range of market conditions

    Impact of higher energy prices on inflation and growthsecond and the third quarter

    the ultimate impact of higher energy prices on inflation and growth is yet to be determined

    Mitigation: watching and adapting as they see things unfold

    Potential credit cycle turn and higher loss levelswhenever you have a meaningful slowdown in the economy or a recession

    cumulative default rates across the entire leverage lending space during the global financial crisis was 10%, recoveries were about 50%, so the cumulative loss was 5% to 6% against coupons of 9% to 10%

    Mitigation: rigorous underwriting, selective deployment and disciplined portfolio construction; institutional drawdown structures

    Regulatory framework calibration

    the rule-making process is still underway

    Mitigation: plan to participate in the comment period; encouraged by the direction of regulatory reform, including the recent Basel III finalization and G-SIB surcharge reproposal

    Tempered IPO and sponsor activitythis quarter

    market conditions tempered execution for IPOs and sponsor activity broadly

    Mitigation: believe that activity levels will rebound once conditions stabilize; backlog closed 2025 at its highest level in 4 years

    Net Interest Margin (NIM) compressionpersist as a headwind for much of 2026

    impact of NIM compression

    Mitigation: aggressively offering the capabilities; growing the deposit balances across the segment

    Q&A highlights

    7

    Inquired about the rationale behind the 180 bps drop in CET1, the deposit growth strategy to finance equity financing, and whether the deployment in lending would yield ROEs in line with long-term goals.

    Management explained the CET1 drop was due to strategic deployment into client franchises (equities financing, private wealth lending, acquisition financing) and record share buybacks. They confirmed that the deployed capital is generating attractive returns, with GBM's ROE over 22%. Deposit growth supports firm-wide lending activities.

    “across our portfolio of activities, we are generating very attractive returns on that incremental amount of lending activity.”

    asked by Glenn Schorr · answered by Denis Coleman

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Diversified Franchise

    Goldman Sachs reported its second highest net revenues ($17.2 billion), net earnings ($5.6 billion), and EPS ($17.55) in firm history, achieving a 19.8% ROE and 21.3% ROTE. This performance underscores the strength of its global franchise and ability to execute for clients amidst a dynamic macro environment, which saw initial optimism shift to increased volatility due to AI disruption, private credit concerns, and geopolitical tensions.

    02

    Global Banking & Markets Excellence

    The Global Banking & Markets segment delivered record revenues of $12.7 billion, with an ROE exceeding 22%. Advisory revenues surged 89% year-over-year to $1.5 billion, maintaining the firm's #1 M&A adviser position. Equities net revenues also hit a record $5.3 billion, driven by a 59% increase in financing revenues. FICC net revenues were $4 billion, with strong performance in currencies and commodities offsetting lower results in rates and mortgages.

    03

    Asset & Wealth Management Momentum

    Asset & Wealth Management generated $4.1 billion in revenues, with management and other fees up 14% year-over-year to $3.1 billion. The firm achieved $62 billion in long-term net inflows, marking its 33rd consecutive quarter of positive fee-based inflows, and reached a record $3.7 trillion in total assets under supervision. Lending to ultra-high net worth clients also reached a record $46 billion.

    04

    Strategic Approach to Private Credit

    Management addressed recent focus on the private credit industry, emphasizing Goldman Sachs' 30-year track record of rigorous underwriting and disciplined portfolio construction. The firm noted that 40% of Q1 2026 subscriptions in its GS credit BDC came from institutions, and its broad platform is over 80% institutional partners. They view a potential credit cycle as an opportunity for a scaled platform like theirs, with FICC financing activities historically showing zero life-to-date realized losses (excluding direct CRE).

    05

    Capital Management and Regulatory Outlook

    The firm's Common Equity Tier 1 ratio stood at 12.5%, 110 basis points above its 11.4% requirement, providing capacity for client activities and capital returns. Goldman Sachs returned $6.4 billion to common shareholders, including a record $5 billion in stock repurchases. Management expressed encouragement regarding the direction of regulatory reform, including the Basel III finalization and G-SIB surcharge reproposal, believing it aligns regulatory outcomes with actual risk.

    06

    Technology Investment and AI Integration

    Goldman Sachs is accelerating investments in cloud migration and data infrastructure to optimize the deployment of AI solutions across the firm. These efforts, part of the One Goldman Sachs 3.0 initiative, are expected to drive stronger operating leverage, greater resilience, and improved efficiency, ultimately enhancing client service and unlocking productivity opportunities.

    AI-generated summary of the company’s earnings call. Not investment advice.