Goldman Sachs reports Q1 earnings beat, shares drop on FICC weakness
Published: 10:20 13 Apr 2026 EDT
Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS) shares fell about 4% in early trade on Monday despite the firm reporting first quarter earnings and revenue that exceeded analyst expectations, as investors weighed mixed performance across its divisions alongside a rise in credit costs.
The bank reported net revenues of $17.23 billion for the quarter ended March 31, 2026, up 14% year-over-year and 28% higher than the prior quarter. This beat estimates of $16.97 billion.
Net earnings rose 19% to $5.63 billion, or $17.55 per share, beating the consensus estimate of $16.50.
Strength in equities trading and investment banking drove the overall outperformance. Equities revenue jumped 27% to a record $5.33 billion, while investment banking fees surged 48% to $2.84 billion, supported by a rebound in merger advisory activity and stronger underwriting.
However, fixed income, currency and commodities (FICC) revenue fell 10% to $4.01 billion, significantly missing expectations and tempering the overall results. Asset and wealth management revenue rose 10% to $4.08 billion, but also came in slightly below forecasts.
“Goldman Sachs delivered very strong performance for our shareholders this quarter, even as market conditions became more volatile,” Goldman Sachs CEO David Solomon said. “The geopolitical landscape remains very complex – so disciplined risk management must remain core to how we operate.”
Analysts at Jefferies described the quarter as a mixed print, highlighting “solid” investment banking performance offset by weaker-than-expected FICC results.
They noted total revenue came in modestly above consensus, with investment banking outperforming by roughly $300 million and equities by about $360 million, while FICC missed by approximately $830 million and asset and wealth management lagged by around $340 million.
Jefferies pointed to particularly strong advisory revenue within investment banking, which rose sharply on increased merger activity, though they also flagged a slight sequential decline in Goldman’s deal backlog.
In trading, they wrote that overall results were supported by record equities revenue, but that this was partly offset by softer FICC performance, driven by weaker activity in interest rate products, mortgages and credit.
The analysts also highlighted elevated share repurchases, with Goldman buying back about $5 billion in stock during the quarter, well above expectations, and generating a return on tangible common equity of roughly 21%. However, they noted this was accompanied by a decline in capital ratios quarter-over-quarter.
In asset and wealth management, Jefferies pointed to continued momentum in alternatives fundraising and positive net inflows, though profitability metrics remained below long-term targets. Meanwhile, the firm’s platform solutions segment showed improving returns, albeit from a low base, following prior losses tied to its consumer lending exposure.
