Goldman Sachs Smashes Q1 Estimates on Record $4.19B Equity Trading Revenue

Goldman Sachs Surges Past Earnings Estimates on Trading Boom

Goldman Sachs delivered a strong first-quarter performance, beating Wall Street expectations on both earnings and revenue, thanks to a record-setting quarter in equities trading. The bank posted earnings of $14.12 per share versus an expected $12.35, with revenue reaching $15.06 billion compared to forecasts of $14.81 billion.

What fueled Goldman’s record trading revenue?

Equities trading was the clear standout, with revenue in that division soaring 27% year-over-year to $4.19 billion. The spike followed heightened market volatility linked to President Donald Trump’s trade policy agenda, which has stirred trading volumes across Wall Street. Goldman’s result follows similar trading-driven beats from rivals JPMorgan Chase and Morgan Stanley, which reported 48% and 45% increases in equity trading, respectively.

CEO David Solomon credited the firm’s performance to its ability to capitalize on market dislocations, though he acknowledged that the operating environment has already shifted entering Q2. His leadership was recently solidified with an $80 million retention package designed to ensure continuity through 2030.

How did other segments perform?

While trading drove the quarterly beat, investment banking continued to face headwinds. Revenue from dealmaking fell 8% year-over-year to $1.91 billion, as market volatility limited clients’ appetite for mergers and large-scale financing deals. Meanwhile, asset and wealth management generated $3.68 billion, falling short of the $3.84 billion analysts expected.

Goldman continues to push for growth in its wealth business, which now manages $3.17 trillion. It is targeting individual investors with new private equity offerings to stabilize revenues and reduce reliance on cyclical trading and banking income.

What are traders watching next?

Return on equity came in at a solid 16.9%, underscoring the bank’s efficiency and reinforcing bullish sentiment around the stock. However, Goldman’s longer-term gains hinge on political and economic clarity, particularly on U.S. trade policy and deal-making confidence. Traders will be closely monitoring guidance from the Federal Reserve and further corporate earnings this week for signs of sustained trading momentum or a broader pivot toward stability.

For now, Goldman looks well-positioned to benefit from elevated trading activity, but challenges in investment banking and asset management will remain key watchpoints heading into the second quarter.

More Information in our Economic Calendar.