GS · Q1 2026 Earnings

Bullish

Goldman Sachs

Reported April 13, 2026

30-second summary

Goldman printed $17.23B revenue (+14.4% YoY, +28% QoQ) and $17.55 GAAP EPS, with IB fees of $2.84B (+48% YoY vs. $1.91B, +10% QoQ from $2.58B) and CET1 (Standardized) compressing 180bps to 12.5% — the first real evidence the "excess capital" language from January has converted to deployment. The cleanest signals: Asia revenue +78.5% YoY to $3.04B, equities financing a record $2.6B (+59% YoY), and Annualized ROE 19.8% running well above the mid-teens through-cycle target. Platform Solutions revenue fell 32.6% YoY to $0.41B with only qualitative "lower" Q2 guidance — the one disclosure that got softer.

Headline numbers

EPS

Q1 FY2026

$17.55

Revenue

Q1 FY2026

$17.23B

+14.4% YoY

Operating margin

Q1 FY2026

39.5%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY
Revenue	$17.23B	+14.4%
EPS	$17.55	—
Operating margin	39.5%	—

Guidance

Goldman Sachs provided new full-year tax rate guidance (~20%) and qualitative FY2026 revenue outlook while reiterating strategic confidence; no quantitative forward guidance on revenues or earnings, making quarter-to-quarter comparability limited.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

New guidance

Metric	Period	Guide	YoY
Effective tax rate	FY 2026	approximately 20%	—
Platform Solutions revenues	Q2 FY2026	expected to run lower, in line with seasonal trends	—

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Global Banking & Markets	$12.74B	+19.0%
Asset & Wealth Management	$4.08B	+10.0%
Platform Solutions	$0.41B	-32.6%
Investment Banking Fees	$2.84 billion	—

Capital & returns

Q1 FY2026

Segment	Q1 FY2026
Annualized ROE	19.8%
Book Value Per Share	$361.19
Common Equity Tier 1 Capital Ratio (Standardized)	12.5%
Average Global Core Liquid Assets	$494 billion
Supplementary Leverage Ratio	4.6%

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Americas	$10.42B	+5.6%
EMEA	$3.77B	+7.9%
Asia	$3.04B	+78.5%
Efficiency Ratio	60.5%	—
Assets Under Supervision	$3.65 trillion	—

Management tone

Capital posture moved from "excess and deployable" to "deployed." Q4 introduced "excess capital" language alongside a 50% dividend raise but CET1 stayed at 14.3%. Q1 finally moved the ratio: CET1 (Standardized) compressed 180bps to 12.5%. The action matches the rhetoric for the first time. Management also explicitly tied this to regulatory progress: "we're encouraged by the direction of regulatory reform, including the recent Basel III finalization and GSIB surcharge re-proposal." The implicit conclusion: Goldman is no longer waiting for full regulatory clarity to deploy.

AI escalated again, from "operating model launched" to "operating model in execution." Management framed GS 3.0 prospectively this quarter: "we remain confident that over time, 1GS 3.0 will drive stronger operating leverage, greater resilience, and improved efficiency in returns." Denis added that the firm is "accelerating our investments in cloud migration and in the accuracy, completeness, and timeliness of our data" as foundational work for AI deployment. The efficiency ratio at 60.5% is essentially flat vs. Q1 2025's 60.6% — no step-change yet, and management did not attribute any move to GS 3.0. What remains absent: headcount targets, restructuring charge size, an efficiency-ratio target with a year attached.

Equities financing crossed from "growth opportunity" to "structural pillar." Q1 put the structural call in print: "Record equities financing revenues of $2.6 billion were 59% higher year-over-year...financing revenues of $3.7 billion rose 36% versus the prior year and comprised nearly 40% of total FIC and equities revenues." When ~40% of a major franchise's revenue comes from a less-cyclical financing stream that didn't exist at this scale three years ago, the cyclical-peak debate around equities trading weakens materially.

Recurring themes management leaned on this quarter:

Diversification as resilience amid volatility; strong results despite sponsor slowdownBalance sheet deployment into durable revenue streams: equities financing, acquisition financing, Asia expansionPrivate credit positioned as institutional opportunity; retail noise isolated; historical loss rates support confidenceAI-driven efficiency and growth acceleration over 3-5 year horizon; 1GS 3.0 infrastructure investments front-loadedRegulatory tailwind: Basel III finalization and GSIB surcharge re-proposal creating capital flexibility and return optionalityClient engagement remains robust across all segments despite geopolitical uncertainty; macro headwinds not translating to business pullback

Risks management surfaced:

Geopolitical uncertainty: Middle East conflict impacting IPO activity; energy price persistence could pressure inflation and growthMacro sensitivity: higher energy prices on inflation trajectory; resolution of conflict could create longer-term headwindsPrivate credit retail redemption pressure: isolated to ~20% of direct lending ($230B of ~$1.6-1.7T), but monitoring requiredCredit cycle normalization: long cycle duration means potential elevated loss rates if slowdown occurs, though institutional positioning strongCybersecurity and AI-related infrastructure risks: accelerating investments required to stay ahead of evolving threat landscape

Answers to last quarter's watch list

The first quantitative anchor for GS 3.0. No headcount targets, restructuring charge size, or dated efficiency-ratio target was disclosed. The efficiency ratio at 60.5% is essentially flat vs. Q1 2025's 60.6%, so no directional signal yet.

Continue monitoring

AWM fee-based net inflow run-rate. Management disclosed $62B in long-term fee-based net inflows in Q1 (including $22B in wealth management), the 33rd consecutive quarter of long-term net inflows. Total AUS reached $3.65T (+1.2% QoQ from $3.606T).

Resolved positively

IB fees vs. the four-year-high backlog narrative. IB fees of $2.84B (+48% YoY from $1.91B, +10% QoQ from $2.58B) cleanly validates the backlog conversion thesis. Management's language reinforced this: the firm's quarter-end backlog "remained extraordinarily robust" even after exceptionally strong revenue production. Conversion is happening despite slower sponsor activity, which suggests strategic M&A is carrying the print.

Resolved positively

CET1 step-down behavior. CET1 (Standardized) printed 12.5%, down 180bps from 14.3% in Q4. This is decisive deployment, not a symbolic move — well past the 14.0% threshold flagged last quarter as evidence of glide-path behavior.

Resolved positively

Apple Card transition cadence and Platform Solutions loss magnitude. Platform Solutions revenue of $0.41B (-32.6% YoY) was disclosed, but no segment pre-tax loss figure was provided in the press release. Status: Continue monitoring — the soft Q2 guide ("lower in line with seasonal trends") raises rather than answers the question.

FY2026 incentive fee progression toward the $1B target. Incentive fees of $183M in Q1 were disclosed (vs. $129M Q1 2025, +42% YoY). Status: On track but needs multi-quarter validation.

What to watch into next quarter

Platform Solutions Q2 print vs. the "seasonal" framing. A Q2 revenue print well below Q1's $411M with no segment loss disclosure would force the FY2026 segment guide to be re-baselined. A print at $450M+ would suggest Q1 was the transition-runoff trough.

CET1 trajectory now that the ratio has broken 13%. A further step-down toward 12.0% in Q2 confirms the deployment glide path is multi-quarter; staying flat at 12.5% would mean Q1 was a one-time deployment burst rather than a new trajectory. Management noted Q1's CET1 of 12.5% sits 110bps above the 11.4% current capital requirement.

IB fees holding above $2.5B with sponsor activity still soft. Management telegraphed sponsor activity is slower but that strategic M&A is carrying the print. A Q2 print above $2.5B with sponsor still soft would validate the strategic M&A leg as durable; a print in the low $2Bs would suggest sponsor weakness is finally showing through.

Asia revenue sustainability. Q1 Asia revenue at $3.04B (+78.5% YoY) is the biggest geographic surprise on the print. Either this is the new run-rate (in which case the $300B alts target gets more credible) or it's a single-quarter outlier driven by a deal cluster and prime financing surge. A Q2 print materially below $2.5B reopens the question.

Equities financing holding $2.4B+ with the 40% mix call intact. Q1 was a record at $2.6B. If financing sustains at $2.4B+ in Q2, the structural-pillar framing is validated; a drop to $2.0B would suggest Q1 benefited from a volatility regime that may not persist.

Efficiency ratio direction. Q1 at 60.5% is essentially flat YoY. A meaningful step-down in Q2 — particularly if management starts attributing the move to GS 3.0 — would be the first real evidence the AI reorganization is showing up in numbers.

Sources

Goldman Sachs Q1 2026 earnings press release (SEC EDGAR, April 13 2026): https://www.sec.gov/Archives/edgar/data/886982/000088698226000096/a1q26gsearningsresults.htm
Goldman Sachs Q1 2026 earnings call prepared remarks (as provided in extraction inputs)

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