GS-PD — The Goldman Sachs Group, Inc.

Summary of Goldman Sachs Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Record Revenues: Goldman Sachs reported revenues of $20.3 billion for Q2 2026, with earnings per share (EPS) at $20.98.
• Return on Equity (ROE): 23.5%, and Return on Tangible Equity (ROTE): 25.5%.
• Investment Banking Performance: Advisory revenues rose 17% year-over-year to $1.4 billion, with a record investment banking backlog.
• Equities and FICC Performance: Equities revenues reached $7.4 billion (up 86% year-over-year), while FICC revenues were $4.6 billion (up 32%).
• Asset and Wealth Management: Revenues increased 20% year-over-year to $4.6 billion, with total assets under supervision surpassing $4 trillion.

2. Strategic Updates and Business Highlights:

• M&A Activity: Significant increase in strategic deal-making, with large-cap corporate M&A volumes up 90% year-to-date.
• AI Investment Cycle: Expansion of capital needs across various sectors, creating opportunities for Goldman Sachs in structuring and financing.
• Wealth Management Growth: Continued success with $19 billion in net inflows, marking the 34th consecutive quarter of long-term inflows.
• Record Fundraising: Alternatives fundraising reached $59 billion in Q2, with a year-to-date total of $85 billion.
• Dividend Increase: Quarterly dividend raised to $5 per share, a 25% increase year-over-year.

3. Forward Guidance and Outlook:

• Investment Banking Outlook: Optimistic about continued strong demand for advisory services and investment banking, with a robust pipeline.
• AI Infrastructure Build-Out: Anticipated to drive elevated levels of strategic activity and financing in the coming years.
• Capital Management: Focus on disciplined capital allocation to support client needs while returning excess capital to shareholders.

4. Bad News, Challenges, or Points of Concern:

• Market Volatility: Acknowledgment that economic conditions can change quickly, potentially impacting client activity and market stability.
• Regulatory Environment: Ongoing engagement with regulators to align outcomes with underlying risks, with a focus on achieving a more balanced regulatory framework.
• Competitive Pressures: While Goldman Sachs is performing well, there is recognition of competitive pressures in the investment banking sector, particularly in Asia.

5. Notable Q&A Insights:

• Equities Performance: Discussion on the sustainability of equities revenue growth and wallet share gains, with emphasis on strategic investments in Asia.
• Capital Allocation: Insights into how Goldman Sachs prioritizes capital allocation to support client activities while managing risks and maintaining shareholder returns.
• AI Investment Cycle Durability: Confidence expressed in the long-term growth potential of the AI infrastructure build-out, despite potential short-term fluctuations.
• Financing Demand: Recognition of high demand for financing across various sectors, particularly related to AI and infrastructure, with a focus on maintaining a balanced approach to risk management.

Overall, Goldman Sachs demonstrated strong financial performance in Q2 2026, driven by robust client activity and strategic investments, while also acknowledging potential market risks and competitive challenges.