Goldman Sachs posts stronger-than-expected profit, lifts dividend as trading surges

Goldman Sachs reported a fourth-quarter net profit that comfortably outpaced analyst expectations, driven by record equities trading and stronger-than-expected performance in asset and wealth management, and the firm’s board approved a higher quarterly dividend. The bank said net earnings for 4Q25 were $4.62 billion, with adjusted earnings per common share of $14.01, on net revenues of $13.45 billion.

For the full year, Goldman posted net revenues of $58.28 billion, net earnings of $17.18 billion and earnings per common share of $51.32. The board increased the quarterly dividend to $4.50 from $4.00, payable March 30, 2026 to holders of record on March 2, 2026. The dividend step-up, announced in mid‑January, underscores the firm’s willingness to return capital to shareholders after a year of robust trading and fee generation.

Equities trading was the standout driver in the quarter. The company reported record equity trading revenue of roughly $4.3 billion, supported by gains in equities financing and lending to hedge funds and institutional clients, including capital-call loans and warehouse financing. Investment-banking fees rose year over year to $2.58 billion, though that tally fell slightly below some market expectations. Asset and wealth management posted record management fees for 2025 of $3.09 billion and outperformed internal targets, prompting Goldman to raise return objectives for that business from the mid-teens toward the high teens and set a pre-tax margin aim near 30 percent.

Those segment gains helped offset an overall revenue dip versus the prior year. The company noted that net revenue fell about 3 percent year over year to $13.45 billion in 4Q25, in part reflecting the disposition of its Apple Card loan portfolio and the early termination of the Apple card arrangement. One-time items linked to that sale may also complicate comparisons with consensus estimates; Goldman’s reported EPS of $14.01 nevertheless exceeded LSEG consensus estimates cited in market commentary.

Operating expenses in the quarter totaled $9.72 billion, contributing to a 2025 operating expense figure of $37.54 billion and a full-year efficiency ratio of 64.4 percent. Book value per share rose 6.2 percent to $357.60 for 2025, and return on equity for the year was 15.0 percent, with 4Q25 ROE at 16.0 percent—metrics that argue the bank is generating healthy returns while expanding fee-based businesses.

The results highlight a broader trend in large investment banks toward diversifying revenue away from cyclical underwriting and trading spikes and building steadier fee streams in wealth and asset management. Goldman’s explicit raising of targets for asset and wealth management signals an institutional push to capture more predictable earnings and improve margins over time.

Market watchers caution that the favorable headline numbers come amid persistent macroeconomic and geopolitical risks. Morgan Stanley’s chief executive warned analysts not to "overreach," saying, "This is not the time to overreach," a reminder that banks remain sensitive to swings in capital markets activity and client behavior.

Company contacts listed in Goldman Sachs’ January 15, 2026 disclosure are Media Relations — Tony Fratto, 212-902-5400; Investor Relations — Jehan Ilahi, 212-902-0300. Corporate headquarters: 200 West Street, New York, NY 10282.