Goldman Sachs posts record trading, raises dividend amid AI spend

Goldman Sachs reported fourth-quarter 2025 results that topped expectations, driven by record equities trading and stronger dealmaking, signaling a firmer financial position for the firm. The bank delivered earnings per share of $14.01, above consensus, while equity-trading revenue rose to a record $4.31 billion. Investment-banking fees climbed about 25% year over year, and asset and wealth management posted record quarterly management fee revenue.

Management raised the quarterly dividend to $4.50 per share, a move that reflects a more confident capital-return posture after a year of robust trading and deal flow. At the same time, the firm said expenses increased, in part because of investments in artificial intelligence and higher compensation costs. Headcount rose modestly, about 2% over 2025, even as management continues to flag ongoing operational reviews that have previously been linked to constrained headcount growth and limited role reductions.

For employees across trading desks, investment banking and wealth management, the results carry mixed signals. Record trading revenue and stronger dealmaking typically expand compensation pools and can support larger bonuses in trading and deal teams. Higher management fee revenue in asset and wealth management strengthens fee-based businesses that drive more predictable pay and staffing needs for advisors and client teams.

At the same time, the emphasis on AI investment and operational reviews keeps pressure on organization design and resourcing decisions. Management has tied past operational reviews to headcount constraints and targeted role reductions; the modest year-over-year headcount increase suggests hiring was cautious even as revenue surged. That dynamic leaves teams balancing the prospect of higher pay from strong revenue against ongoing scrutiny of roles and processes as the firm automates or retools workflows.

Operationally, AI spending may reshape work on both front and back ends, from trading algorithms and data infrastructure to client-facing tools in wealth management. Those shifts could change skill demands and hiring priorities, favoring technical and data talent while prompting reviews of existing roles and workflows.

The immediate takeaway for Goldman employees is that strong performance has expanded the firm’s capacity to reward revenue-generating groups and return capital to shareholders, but management’s dual focus on technology investment and operational efficiency means staffing and role stability remain areas to watch. How the bank balances dividend increases, continued AI investment and workforce adjustments will determine hiring, promotion and compensation trends in the coming quarters.