The Goldman Sachs Group, Inc.’s GS first-quarter 2025 adjusted earnings per share of $14.12 surpassed the Zacks Consensus Estimate of $12.71. This compares favorably with $11.58 in the year-ago quarter.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

Shares of the company gained 1.7% in the pre-market trading on better-than-expected results.

The volatile market lifted Goldman's net revenues in Equities by 27% year over year to $4.2 billion as investors reshuffled their portfolios to mitigate the hit from the new tariffs. Fixed income, currency, and commodities trading revenues rose 2% year over year to $4.4 billion. However, IB fees fell 8% to $1.91 billion in the quarter due to lower advisory fees.

Goldman’s results benefited from solid growth in the Global Banking & Markets division. A decline in provisions was another positive. Yet, the decline in IB business and rise in expenses was concerning.

Net earnings (GAAP basis) of $4.7 billion increased 15% from the prior-year quarter.

GS’s Revenues & Expenses Increase 

Net revenues for the quarter of $15.1 billion rose 6% from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 0.3%.

Total operating expenses increased 5% year over year to $9.13 billion.

Provision for credit losses was $287 million, down 10% from the prior-year quarter.

Goldman’s Quarterly Segmental Performance: Mixed Bag

The Asset & Wealth Management division generated revenues of $3.68 billion in the reported quarter, down 3% year over year. The decrease reflected significantly lower net revenues in Equity investments and Debt investments, partially offset by higher Management and other fees.

Firmwide assets under supervision were a record $3.17 trillion, up 11.4% from the prior-year quarter.

The Global Banking & Markets division has recorded revenues of $10.71 billion, which increased 10% year over year. The improvement was driven by record net revenues in Equities (including record net revenues in financing) and strong performances in Fixed Income, Currency and Commodities (including record net revenues in financing), and Debt underwriting.

The Platform Solutions division’s revenues were $676 million, down 3% year over year. 

GS’s Capital Ratios Improve

As of March 31, 2025, the standardized Common Equity Tier 1 capital ratio was 14.8%, up from 14.7% as of March 31, 2024. 

The company’s supplementary leverage ratio was 5.5%, up 5.4% year over year.

Goldman’s Capital Distribution Update

In the reported quarter, GS returned $5.34 billion in capital to common shareholders. This included $4.36 billion in share repurchases and common stock dividends of $976 million.

Our View on GS

Goldman’s focus on IB and trading businesses, along with strong deal-making pipelines, will likely support the top line. Active client engagement and a solid position in announced and completed mergers and acquisitions globally are likely to act as tailwinds in the upcoming period. However, a rise in expenses poses near-term concern.

The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise

The Goldman Sachs Group, Inc. price-consensus-eps-surprise-chart | The Goldman Sachs Group, Inc. Quote

Currently, GS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of Other Investment Banks

Raymond James Financial Inc. RJF is slated to report quarterly results on April 23. The Zacks Consensus Estimate for RJF’s fiscal second-quarter 2025 earnings has been revised 3.2% downward to $2.44 per share over the past seven days.

LPL Financial Holdings Inc. LPLA is expected to report quarterly results on April 29. The Zacks Consensus Estimate for LPLA’s fiscal first-quarter 2025 earnings has been unchanged at $4.54 per share over the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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