GS-PA — The Goldman Sachs Group, Inc.

Summary of Goldman Sachs Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Record Revenues: Goldman Sachs reported record revenues of $20.3 billion for Q2 2026.
• Earnings Per Share (EPS): EPS reached $20.98, marking a significant increase.
• Return on Equity (ROE): ROE was 23.5%, and Return on Tangible Equity (ROTE) was 25.5%.
• Investment Banking Performance: Advisory revenues increased 17% year-over-year to $1.4 billion, with a backlog at its highest in five years.
• Equities and FICC Performance: Equities revenues hit a record $7.4 billion, while FICC revenues were $4.6 billion, up 32% year-over-year.
• Asset and Wealth Management: Revenues rose 20% to $4.6 billion, with total assets under supervision reaching a record $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: The firm is capitalizing on expanding AI-related capital needs across various sectors, enhancing its advisory and financing capabilities.
• Wealth Management Growth: Continued strong inflows, with $19 billion in wealth management and a 34th consecutive quarter of net inflows.
• Record Fundraising: Alternatives fundraising reached $59 billion in Q2, with a total of $85 billion year-to-date.
• Capital Management: Increased quarterly dividend by 25% to $5 per share and repurchased $4 billion in common stock.

3. Forward Guidance and Outlook:

• Investment Banking Outlook: Optimistic about continued strong activity in investment banking, with a robust advisory backlog.
• AI Infrastructure Build-Out: Anticipation of ongoing elevated levels of strategic activity and financing related to AI over the coming years.
• Market Conditions: Acknowledgment of potential volatility but confidence in the firm's ability to manage risks and capitalize on opportunities.

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

• Market Volatility Risks: Acknowledgment that economic conditions can change rapidly, leading to periods of disruption.
• Regulatory Environment: Ongoing engagement with regulators to align regulatory outcomes with underlying risks, with a focus on stress test calibration.
• Concentration Risks: Concerns about reliance on large clients in equities and the potential for market fluctuations to impact revenue.

5. Notable Q&A Insights:

• Equities Performance: Discussion on wallet share gains and the impact of market dynamics on equities revenues, with a focus on Asia.
• Capital Allocation: Emphasis on disciplined capital allocation to support client activities while balancing shareholder returns through buybacks.
• Durability of AI Cycle: Confidence in the long-term growth potential of the AI investment cycle, despite potential short-term fluctuations.
• Financing Demand: Noted that demand for financing, particularly in prime and FICC, is currently outpacing supply, indicating strong client interest.

Overall, Goldman Sachs reported a robust quarter with record financial results, driven by strong client activity and strategic positioning in AI and M&A. However, the firm remains cautious about potential market volatility and regulatory challenges.