Goldman Sachs Group Inc. (NYSE:GS) reported a solid second quarter for 2025, with results surpassing analyst estimates. The firm demonstrated strong performance across key segments, including significant contributions from its trading and investment banking operations. This quarter’s results also saw the company increase its shareholder returns.
JPMorgan analyst Kian Abouhossein reviewed Goldman Sachs Group Inc.‘s (NYSE:GS) second-quarter 2025 results, highlighting a solid earnings beat and strong performance across key segments.
Goldman reported earnings of $10.91 per share, surpassing the consensus estimate of $9.48. Revenue rose 15% year over year to $14.58 billion, driven by robust results in trading and investment banking.
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Equities revenue surged 36%, and investment banking fees climbed 26%. Net interest income increased 56% to $3.1 billion. Assets under supervision reached a record $3.29 trillion, supported by $5 billion in net inflows.
The firm returned $3.96 billion to shareholders during the quarter and raised its quarterly dividend to $4.00 per share. Return on equity stood at 12.8%, and the Common Equity Tier 1 (CET1) capital ratio was 14.5%.
CEO David Solomon attributed the strong results to solid execution and an ongoing commitment to risk management.
The analyst noted that Goldman Sachs Group Inc. posted earnings 12% above Bloomberg consensus and 29% ahead of JPMorgan estimates. Pre-tax earnings of $4.96 billion exceeded expectations by 27%. Return on tangible equity reached 13.6% for the quarter and 15.8% for the first half of 2025.
According to Kian Abouhossein, a key highlight was equities sales and trading revenue, which jumped 36% year over year to a record $4.3 billion, outperforming peers such as Bank of America (NYSE:BAC) and Citigroup (NYSE:C).
The analyst expects low-to-mid-single-digit EPS upgrades for 2025 and sees Goldman Sachs shares likely outperforming peers.
According to the analyst’s valuation, Goldman Sachs currently trades at 13.2 times forward earnings and 2.1 times tangible book value, with a projected return on tangible equity of 15.8% by 2027. The stock is rated Overweight.
Recent Analyst Ratings:
- HSBC analyst Saul Martinez downgraded the stock to Reduce from Hold but raised the price target from $558 to $627 on July 8, 2025.
- Wells Fargo analyst Mike Mayo reiterated an Overweight rating and raised the price target from $650 to $785 on July 8, 2025.
- Evercore ISI analyst Glenn Schorr maintained an Outperform rating and boosted the price target from $630 to $715 on July 2, 2025.
- Morgan Stanley analyst Betsy Graseck kept an Equal-Weight rating while lifting the price target from $570 to $592 on June 23, 2025.
- RBC Capital analyst Gerard Cassidy reaffirmed a Sector Perform rating but trimmed the price target from $610 to $560 on April 15, 2025.
Price Action: GS shares were trading lower by 0.26% to $700.19 at last check Wednesday.
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