Goldman Sachs Surpasses Q1 Expectations on Surge in Equities Trading Revenue

New York – Goldman Sachs reported stronger-than-expected first-quarter results on Monday, driven by a sharp rise in equities trading revenue, helping offset declines in other business divisions amid growing global economic uncertainty.

The Wall Street giant posted earnings of $14.12 per share, well ahead of the $12.35 estimate from LSEG analysts. Revenue climbed 6% year-over-year to $15.06 billion, also beating projections of $14.81 billion.

Net profit for the quarter rose 15% to $4.74 billion, fueled largely by gains in its Global Banking and Markets division.

Equities Trading Powers Performance

The bank's equities trading revenue jumped 27% to $4.19 billion, outperforming expectations by more than $500 million, and lifting total revenue in the Global Banking and Markets division by 10% to $10.71 billion.

That performance helped offset underwhelming results in other business areas. Fixed income trading brought in $4.4 billion, up 2% year-over-year but short of the $4.56 billion analysts had forecast. Meanwhile, investment banking revenue fell 8% to $1.91 billion, missing the $1.94 billion target due to lower advisory activity.

Caution Amid Uncertainty

CEO David Solomon acknowledged that the operating environment had shifted significantly as the second quarter began, citing heightened geopolitical and trade-related volatility triggered by President Donald Trump’s latest trade maneuvers.

“While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to support our clients,” Solomon said.

The ongoing trade tensions and broader global uncertainty have caused many of Goldman’s corporate clients to pause M&A and investment plans, echoing sentiments shared last week by executives at JPMorgan and Morgan Stanley.

“Our clients… are concerned by the significant near-term and longer-term uncertainty that has constrained their ability to make important decisions,” Solomon added. “The risk of an escalating trade war poses material threats to both the U.S. and global economies.”

Mixed Performance Across Other Divisions

• Asset and Wealth Management revenue fell 3% to $3.68 billion, slightly below expectations, due to lower returns from private equity and public market investments.

• Platform Solutions, which includes consumer financial products and fintech services, also posted a 3% dip to $676 million, narrowly missing its $677.5 million estimate.

Shares Rise Despite Year-To-Date Drop

Shares of Goldman Sachs rose 2.2% in early trading following the earnings announcement, offering a temporary lift in a year where the stock has fallen 14% through Friday.

Despite challenges across some segments, Goldman’s first-quarter performance reinforces its strength in navigating volatile market conditions, particularly through its robust trading operations.