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GOLDMAN SACHS GROUP INC

GS
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Business Summary

Goldman Sachs is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. The firm operates in three business segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. Global Banking & Markets serves public and private sector clients, making markets and facilitating client transactions in fixed income, currency, commodity and equity products. Asset & Wealth Management provides investment services to help clients preserve and grow their financial assets, managing client assets across a broad range of investment strategies and asset classes including equity, fixed income and alternative investments. Platform Solutions substantially derives revenues from activities related to issuing credit cards to and raising deposits from Apple Card customers and related to businesses that have been exited.

The financial services industry is intensely competitive, with competitors including brokers and dealers, investment banking firms, commercial banks, credit card issuers, insurance companies, investment advisers, mutual funds, hedge funds, private equity funds, private credit funds, merchant banks and financial technology and other internet-based companies. Goldman Sachs competes based on a number of factors, including transaction execution, client experience, products and services, innovation, reputation and price. The firm faces pressure to retain market share by committing capital to businesses or transactions on terms that may offer returns not commensurate with their risks. Consolidation and convergence have significantly increased the capital base and geographic reach of some competitors, and the firm must compete successfully with financial institutions that are larger and have more capital.

Goldman Sachs generates revenue from investment banking fees (advisory and underwriting), Fixed Income, Currency and Commodities (FICC) intermediation and financing activities, Equities intermediation and financing activities, relationship lending and acquisition financing, transaction banking, management and other fees, incentive fees, private banking and lending, and investments. The firm's goal is to deliver the full range of its services and expertise to support clients in a more accessible, comprehensive and efficient manner across businesses and product areas, reflected in its One Goldman Sachs initiative. The firm's client base includes corporations, financial institutions, governments and individuals.

Global Banking & Markets generates revenues from investment banking fees, including advisory and equity and debt underwriting fees, FICC intermediation and financing activities, Equities intermediation and financing activities, relationship lending and acquisition financing, investing activities related to Global Banking & Markets activities, and transaction banking. Investment banking fees include advisory services for mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs, and underwriting of common stock, preferred stock, convertible securities, exchangeable securities, investment-grade and high-yield debt, bank and bridge loans, and structured securities. FICC intermediation includes client execution activities in interest rate products, credit products, mortgages, currencies, and commodities. FICC financing includes secured lending, financing through resale agreements, and other FICC financing. Equities intermediation includes making markets in equity and equity-related products, and Equities financing includes prime brokerage, securities lending, and swap transactions. Asset & Wealth Management generates revenues from management and other fees, incentive fees, private banking and lending, and investments. Management and other fees are primarily asset-based fees on client assets. Incentive fees are based on a percentage of a fund's or separately managed account's return. Private banking and lending includes loans to wealth management clients and deposits raised through the private bank and Marcus. Investments include public and private equity securities, debt securities and loans related to corporate, real estate and infrastructure assets. Platform Solutions revenues are substantially from activities related to issuing credit cards to and raising deposits from Apple Card customers and related to businesses that have been exited.

In December 2025, Goldman Sachs entered into an agreement to transition the Apple Card program to another issuer, with the transition expected to be completed in approximately 24 months. During 2025, the firm sold the General Motors (GM) credit card program to another issuer. Since 2023, the firm has narrowed its focus with respect to consumer-related activities by taking several actions, and the transition of the Apple Card program will substantially complete the narrowing of such focus. The firm also made certain changes to its segments beginning with the fourth quarter of 2025, including adding transaction banking results to Global Banking & Markets, reclassifying results related to facilitating institutional primary loans for syndication and providing structured letters of credit to corporate clients to FICC financing, allocating Urban Investment Group results across all three segments, and reporting Equity Investments and Debt Investments in aggregate within Asset & Wealth Management.

For the fiscal year ended December 31, 2025, Goldman Sachs reported net revenues of $53.253 billion , compared to $52.525 billion for 2024 and $46.254 billion for 2023. Net earnings applicable to common shareholders were $14.127 billion for 2025, compared to $13.878 billion for 2024 and $7.958 billion for 2023. Diluted earnings per common share were $40.54 for 2025, compared to $38.87 for 2024 and $22.09 for 2023. Return on average common shareholders' equity (ROE) was 12.7% for 2025, compared to 12.7% for 2024 and 7.5% for 2023. Return on average tangible common shareholders' equity (ROTE) was 14.0% for 2025, compared to 14.1% for 2024 and 8.3% for 2023.

Business Outlook

The filing contains forward-looking statements regarding targets for return on average common shareholders' equity (ROE), return on average tangible common shareholders' equity (ROTE), efficiency ratio, Common Equity Tier 1 (CET1) capital ratio, total credit alternative assets, total alternative assets under supervision (AUS), long-term wealth management inflows and percentage growth rate for Management and other fees from alternatives, but these are not formal guidance ranges.

A key growth vector is the OneGS 3.0 initiative, which is a business and expense savings initiative. The filing states that statements about the timing, costs, profitability, benefits and other aspects of business and expense savings initiatives, including OneGS 3.0, the level and composition of more durable revenues and increases in market share are based on current expectations. Another growth vector is the transition of the Asset & Wealth Management business from direct investments on the balance sheet to a scaled third-party funds-driven business, as evidenced by the reporting of Equity Investments and Debt Investments in aggregate. The firm also continues to evaluate the expanded use of strategic locations, including cities in which it does not currently have a presence, with 45% of employees working in strategic locations as of December 2025.

The filing discusses an efficiency ratio target but does not provide a specific numerical target or margin trajectory. Statements about expenses the firm may incur, the level of future compensation expense, including as a percentage of both operating expenses and net revenues, net of provision for credit losses, and the efficiency ratio are subject to risks that compensation and other costs may be greater than currently expected. The filing mentions that inflationary pressures in recent years have increased certain operating expenses.

As of December 2025, Goldman Sachs had headcount of 47,400 , with offices in over 35 countries. 50% of headcount was based in the Americas, 20% in Europe, Middle East and Africa (EMEA) and 30% in Asia. The firm has established key strategic locations including in Bengaluru, Salt Lake City, Dallas, Singapore, Warsaw, Birmingham and Hyderabad. The firm continues to evaluate the expanded use of strategic locations. The filing discusses the Business Continuity & Technology Resilience Program, which has been developed to provide reasonable assurance of business continuity in the event of disruptions at critical facilities or of systems.

The filing does not provide specific R&D spending levels or capital expenditure plans. Regarding share repurchases, the filing states that during 2025, the firm repurchased 15.0 million shares of its common stock at an average price of $579.37 per share, for a total cost of $8.69 billion . The firm also repurchased 1,000 shares of Series J Preferred Stock for $100.0 million and 1,000 shares of Series K Preferred Stock for $100.0 million . The firm paid common stock dividends of $2.85 billion during 2025.

The filing identifies several headwinds and constraints. These include conditions in the global financial markets and broader economic conditions, such as low levels of or declines in economic growth, business activity or investor confidence, concerns over a potential recession, changes in consumer spending or borrowing patterns, increases in inflation or interest rates, and limitations on international trade. The filing also notes that the outcomes of political elections could result in changes in policy which could have adverse effects. Additionally, the firm faces risks from escalating tensions between the U.S. and China, which could disrupt international trade and investment and adversely affect financial markets.

The filing identifies regulatory headwinds as a significant constraint. The firm is subject to extensive regulation and supervision worldwide, including capital and liquidity requirements under the Basel III framework, stress testing under the Comprehensive Capital Analysis and Review (CCAR), and the Volcker Rule which prohibits proprietary trading and limits investments in certain hedge and private equity funds. The filing notes that the application of regulatory strategies and requirements in the U.S. and in non-U.S. jurisdictions to facilitate the orderly resolution of large financial institutions could create greater risk of loss for Group Inc.'s security holders. The firm also faces risks related to climate-related physical and transition risks, which could disrupt businesses and adversely affect client activity levels and the creditworthiness of clients and counterparties.

Risk Factors

Goldman Sachs faces material risks from conditions in the global financial markets and broader economic conditions, which can change suddenly and negatively, impacting client activity levels and creditworthiness. The firm's liquidity, profitability and businesses may be adversely affected by an inability to access the debt capital markets or to sell assets, and as of December 2025, counterparties could have called for additional collateral or termination payments of $224 million in the event of a one-notch downgrade of credit ratings and $1.80 billion in the event of a two-notch downgrade. The firm is exposed to credit risk from third parties that owe money, securities or other assets, and concentration of risk increases the potential for significant losses in market-making, underwriting, investing and financing activities. The firm is subject to extensive regulation, including capital and liquidity requirements under Basel III, stress testing under CCAR, and the Volcker Rule, and the application of regulatory strategies to facilitate orderly resolution could create greater risk of loss for security holders. The firm also faces risks from the development and use of artificial intelligence, which may adversely impact the business, and from climate-related physical and transition risks that could disrupt businesses and adversely affect client activity levels and creditworthiness.

Management Priorities

Management's tone in the filing is forward-looking and focused on strategic priorities, including the One Goldman Sachs initiative to deliver the full range of services and expertise to support clients. Key themes include narrowing the firm's strategic focus with respect to consumer-related activities, as evidenced by the agreement to transition the Apple Card program and the sale of the GM credit card program, and the transition within Asset & Wealth Management from direct investments on the balance sheet to a scaled third-party funds-driven business. The filing contains forward-looking statements about targets for return on average common shareholders' equity (ROE), return on average tangible common shareholders' equity (ROTE), efficiency ratio, Common Equity Tier 1 (CET1) capital ratio, total credit alternative assets, total alternative assets under supervision (AUS), long-term wealth management inflows and percentage growth rate for Management and other fees from alternatives, but these are not presented as formal guidance ranges. The filing emphasizes the importance of human capital, noting that as of December 2025, the average tenure of the members of the Management Committee was approximately 23 years , and that of all employees was approximately 6 years , and that nearly 45% of partners were campus hires.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Consolidated Results
  2. [2] Item 7, MD&A — Consolidated Results
  3. [3] Item 7, MD&A — Consolidated Results
  4. [4] Item 7, MD&A — Consolidated Results
  5. [5] Item 7, MD&A — Consolidated Results
  6. [6] Item 7, MD&A — Consolidated Results
  7. [7] Item 8, Note 21 — Earnings Per Common Share
  8. [8] Item 8, Note 21 — Earnings Per Common Share
  9. [9] Item 8, Note 21 — Earnings Per Common Share
  10. [10] Item 7, MD&A — Executive Overview
  11. [11] Item 7, MD&A — Executive Overview
  12. [12] Item 7, MD&A — Executive Overview
  13. [13] Item 7, MD&A — Executive Overview
  14. [14] Item 7, MD&A — Executive Overview
  15. [15] Item 7, MD&A — Executive Overview
  16. [16] Item 1, Business — Human Capital Management
  17. [17] Item 1, Business — Human Capital Management
  18. [18] Item 1, Business — Human Capital Management
  19. [19] Item 1, Business — Human Capital Management
  20. [20] Item 1, Business — Human Capital Management
  21. [21] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  22. [22] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  23. [23] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  24. [24] Item 8, Note 19 — Shareholders' Equity
  25. [25] Item 8, Note 19 — Shareholders' Equity
  26. [26] Item 8, Note 19 — Shareholders' Equity
  27. [27] Item 8, Note 19 — Shareholders' Equity
  28. [28] Item 8, Note 19 — Shareholders' Equity
  29. [29] Item 1A, Risk Factors — Liquidity
  30. [30] Item 1A, Risk Factors — Liquidity
  31. [31] Item 1, Business — Human Capital Management
  32. [32] Item 1, Business — Human Capital Management
  33. [33] Item 1, Business — Human Capital Management
  34. [34] Item 7, MD&A — Consolidated Results
  35. [35] Item 7, MD&A — Consolidated Results
  36. [36] Item 7, MD&A — Consolidated Results
  37. [37] Item 7, MD&A — Consolidated Results
  38. [38] Item 7, MD&A — Consolidated Results
  39. [39] Item 7, MD&A — Consolidated Results
  40. [40] Item 8, Note 21 — Earnings Per Common Share
  41. [41] Item 8, Note 21 — Earnings Per Common Share
  42. [42] Item 8, Note 21 — Earnings Per Common Share
  43. [43] Item 7, MD&A — Executive Overview
  44. [44] Item 7, MD&A — Executive Overview
  45. [45] Item 7, MD&A — Executive Overview
  46. [46] Item 7, MD&A — Executive Overview
  47. [47] Item 7, MD&A — Executive Overview
  48. [48] Item 7, MD&A — Executive Overview
  49. [49] Item 7, MD&A — Results of Operations
  50. [50] Item 7, MD&A — Results of Operations
  51. [51] Item 7, MD&A — Results of Operations
  52. [52] Item 7, MD&A — Results of Operations
  53. [53] Item 7, MD&A — Results of Operations
  54. [54] Item 7, MD&A — Results of Operations
  55. [55] Item 7, MD&A — Results of Operations
  56. [56] Item 7, MD&A — Results of Operations
  57. [57] Item 7, MD&A — Results of Operations
  58. [58] Item 8, Note 25 — Business Segments
  59. [59] Item 8, Note 25 — Business Segments
  60. [60] Item 8, Note 25 — Business Segments
  61. [61] Item 8, Note 25 — Business Segments
  62. [62] Item 8, Note 25 — Business Segments
  63. [63] Item 8, Note 25 — Business Segments
  64. [64] Item 8, Consolidated Balance Sheets
  65. [65] Item 8, Consolidated Balance Sheets
  66. [66] Item 7, MD&A — Capital Management and Regulatory Capital
  67. [67] Item 7, MD&A — Capital Management and Regulatory Capital
  68. [68] Item 7, MD&A — Capital Management and Regulatory Capital
  69. [69] Item 7, MD&A — Capital Management and Regulatory Capital
  70. [70] Item 7, MD&A — Capital Management and Regulatory Capital

Analysis on 6/8/2026