- Lead. Goldman Sachs reported diluted earnings of $20.98 per share and net revenues of $20.34 billion for Q2 2026, the strongest quarter in the firm’s history, as a surge in investment banking and a record equity trading desk drove results well ahead of analyst expectations.
- Fact. Global Banking & Markets generated $15.5 billion in revenue, equity underwriting jumped 130% year-on-year, and assets under supervision crossed $4 trillion for the first time.
- Stake. The results land as Wall Street debates whether the surge in deal-making and capital markets activity represents durable momentum or a catch-up cycle fuelled by pent-up M&A demand — with Goldman’s investment banking backlog at a five-year high suggesting the pipeline remains full going into the second half.
Goldman Sachs released second-quarter earnings on July 14 showing a 23.5% annualised return on equity and a return on tangible equity of 25.5% — performance metrics that put the firm in the top tier of global banks by profitability. Net revenues of $20.34 billion and net earnings of $6.63 billion were both records, according to the firm’s official press release. The efficiency ratio improved 320 basis points to 58.8%, reflecting the revenue expansion outpacing cost growth.
Where the Numbers Came From
The headline result was built on a broad base across the franchise. Equities net revenues hit $7.4 billion, a record for any single quarter, as client activity in derivatives and intermediation surged. Fixed income, currency and commodities revenues climbed 32% year-on-year, aided by elevated volatility in oil and currency markets through the quarter. In investment banking, equity underwriting rose 130% and debt underwriting 75% as deal pipelines that had been compressed by rate uncertainty opened up across multiple sectors.
Asset and Wealth Management revenues grew 20%, with assets under supervision crossing $4 trillion as other large asset managers also reported record inflows this reporting season. Goldman increased its quarterly dividend 25% to $5 per share and repurchased $4 billion in stock during the quarter, signalling confidence in the capital position.
What the Backlog Says
The investment banking backlog — the pipeline of mandated but uncompleted advisory, underwriting, and financing deals — reached its highest level in five years at the end of Q2, suggesting the firm expects the revenue environment to hold into the third quarter. CEO David Solomon said Goldman “prioritises deploying capital to support client activities that yield accretive returns” while returning excess capital through buybacks when deployment opportunities are not available. The balance between those two uses of capital will determine whether the record EPS of Q2 becomes the new floor or an outlier driven by a particularly favourable market environment.