Goldman Sachs equities traders set second straight quarterly record, topping prior high by $1 billion

Goldman Sachs’ equities traders delivered a second straight quarterly record, a result that gave the firm one of its strongest quarters in years while also highlighting how uneven the markets franchise remains. Equities net revenues reached $5.33 billion in the first quarter of 2026, up 27% from a year earlier and more than $1 billion above the prior all-time high set in the fourth quarter. For traders, salespeople and financing teams, that kind of number can matter as much inside the building as it does on the income statement because it strengthens the case for headcount, product investment and compensation ahead of bonus season.

The firm said first-quarter net revenues were $17.23 billion and net earnings were $5.63 billion, with diluted earnings per share of $17.55 and annualized return on equity of 19.8%. Goldman called the period its second-highest quarterly result ever for net revenues, net earnings and diluted EPS. Chief executive David Solomon said the firm delivered “very strong performance” even as market conditions became more volatile and geopolitical risk remained complex.

The equities result was powered by a sharp rise in financing activity, especially prime financing, alongside stronger intermediation in cash products. That points to active hedge fund and other speculative client flows, the kind of environment that rewards a strong market-making franchise and a deep balance sheet. It also shows how valuable the equities business has become to Goldman’s broader identity as a trading house, particularly when client demand is strong enough to support record financing revenues even after the abrupt departure of co-head Erdit Hoxha to Millennium Management.

But the quarter was not a clean sweep. FICC net revenues came in at $4.01 billion, down 10% from a year earlier, with weakness in interest-rate products, mortgages and credit only partly offset by stronger commodities and currencies. That miss was enough to cloud the earnings beat, and Goldman shares fell nearly 4% in premarket trading as investors focused on the FICC disappointment. For bankers and traders who live quarter to quarter, the split matters: one desk is printing record numbers while another is still battling uneven client activity and tighter conditions.

The rest of the franchise was sturdy. Global Banking & Markets posted $12.74 billion in net revenues, up 19% from a year earlier and 22% from the prior quarter. Investment banking fees rose 48% to $2.84 billion, helped by higher advisory revenues and a big jump in completed M&A volumes. Asset and Wealth Management also extended its run, with assets under supervision hitting a record $3.65 trillion and 33 consecutive quarters of long-term fee-based net inflows.

Inside Goldman, the quarter also came with reminders that strong numbers do not eliminate churn. Seven partners were added to the management committee, expanding it to 46 people, while the firm raised pay for senior executives including John Waldron, Denis Coleman and departing general counsel Kathryn Ruemmler. Goldman is also set to hold its annual meeting on April 29 in Salt Lake City, Utah, with a say-on-pay vote on the agenda. The message for employees is straightforward: the firm is still rewarding the top end of the house, but the value of record revenue will depend on how well it holds talent, sustains client activity and narrows the gap between its strongest and weakest markets businesses.