Goldman Sachs Reports Strong First Quarter 2025 with $15.06 Billion Revenue

Goldman Sachs Group, Inc. (NYSE: GS) reported impressive financial results for the first quarter of 2025, showcasing a solid start to the fiscal year. The firm recorded net revenues of $15.06 billion, marking a 6% increase from the same period in 2024 and a 9% rise from the fourth quarter of 2024.

Net earnings stood at $4.74 billion, with diluted earnings per common share (EPS) reaching $14.12, a significant improvement over the $11.58 reported for the first quarter of 2024 and $11.95 for the fourth quarter of 2024. Goldman Sachs’ annualized return on average common shareholders’ equity (ROE) was 16.9%, while the annualized return on average tangible common shareholders’ equity (ROTE) was 18.0% for the quarter.

Global Banking & Markets was a major contributor to the firm’s success, generating net revenues of $10.71 billion. This segment saw a 10% increase from the first quarter of 2024 and a 26% rise from the fourth quarter of 2024.

The firm achieved record net revenues in equities, driven by strong performances in financing and derivatives. Fixed Income, Currency, and Commodities (FICC) also posted robust results, with net revenues of $4.40 billion, reflecting higher revenues from mortgages and structured lending.

Asset & Wealth Management generated net revenues of $3.68 billion, although this represented a 3% decline from the first quarter of 2024 and a 22% decrease from the fourth quarter of 2024. Despite this, assets under supervision increased by $36 billion during the quarter to a record $3.17 trillion. The firm’s book value per common share rose by 2.2% to $344.20, underscoring the strength of its financial position.

Goldman Sachs Exceeds Market Expectations with Strong Q1 Results

Goldman Sachs’ first-quarter performance exceeded market expectations, which had anticipated EPS of $12.31 and revenue of $14.98 billion. The actual EPS of $14.12 and revenue of $15.06 billion surpassed these projections, highlighting the firm’s ability to navigate a challenging economic environment. The strong results were driven by outstanding performances in Global Banking & Markets, particularly in equities and FICC.

Investment banking fees, however, saw a decline, with revenues of $1.91 billion, 8% lower than the first quarter of 2024. This decrease was primarily due to lower advisory revenues, although debt underwriting showed improvement. Despite this, the firm’s investment banking fees backlog increased, suggesting a positive outlook for future quarters.

Platform Solutions also faced challenges, with net revenues of $676 million, down 3% from the first quarter of 2024. The decrease was mainly due to lower transaction banking revenues, reflecting reduced average deposit balances. Nonetheless, the firm’s overall performance was bolstered by strong results in its core segments, allowing it to exceed market expectations.

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Goldman Declares Quarterly Dividend of $3.00 per Common Share

Looking ahead, Goldman Sachs remains optimistic about its ability to continue delivering strong financial results. The firm has declared a quarterly dividend of $3.00 per common share, to be paid on June 27, 2025. Additionally, Goldman Sachs returned $5.34 billion of capital to common shareholders in the first quarter, including $4.36 billion in common share repurchases and $976 million in common stock dividends.

The firm has also announced a share repurchase program authorizing the repurchase of up to $40 billion of common stock, reflecting its confidence in future performance. Goldman Sachs’ global core liquid assets averaged $441 billion in the first quarter, up from $422 billion in the fourth quarter of 2024, indicating a solid liquidity position.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.