Overnight, Goldman Sachs’ traders maintained the trend set by its peers, posting their highest quarterly revenue on record, helped by strong equity trading – the stock rose ~2% following the result. The results built on a record year for Goldman in 2024 when the New York-based bank lifted its revenue in its equities division by almost 50%.
- Equity trading revenue surged +27% from a year earlier to $4.19 billion.
- GS’s top-line revenue came in at $15.1 billion, beating analyst expectations of $14.8 billion.
- Return on equity for the quarter was 16.9%, higher than estimates.
The stock remains well below its 2025 high, and although the stock is now trading above its average valuation of the last 5 years, we believe it’s justified after this impressive quarterly.
- We can see GS trading significantly higher through 2025: MM owns GS in our International Equities Portfolio.
MM is long and bullish GS
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We like the US banks following these strong quarterly results, though subscribers often ask, ‘what’s your preference?’. Here goes:
- GS, JPM, MS and WFC, but we particularly like the first two.
