Goldman Sachs GS

NYSE GS
$1,029.10 +9.37 (+0.92%)
At close: Sep 11, 2026 · 4:00 PM EDT
Key Stats
Market Cap299.92 Bn
P/E15.41
P/S4.53
Div. Yield2.04
Total Debt (Qtr)493.51 Bn
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About

Goldman Sachs Group Inc 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's purpose is to advance sustainable economic growth and financial opportunity. Goldman Sachs Group Inc operates as a bank holding company and a financial holding company regulated by the Board of Governors of the Federal Reserve…

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Sector: Financial Services Sector rationale Goldman Sachs is a global financial institution that generates revenue from investment banking fees, asset and wealth management, and market-making in fixed income, currency, and commodities. Its core business model involves lending, underwriting, and managing money under a bank holding company charter, which fits squarely within the Financial Services sector. Industries: +2 more Money Center Banks Money Center Banks Primary Goldman Sachs is a globally scaled bank holding company with a U.S. depository institution subsidiary (Goldman Sachs Bank USA) that takes deposits. Its revenue is split across multiple banking lines including retail/commercial banking (Marcus, transaction banking), capital markets (FICC and Equities intermediation), and wealth management. Investment Banking Investment Banking Secondary The company earns significant investment banking fees from advising corporations on mergers, acquisitions, divestitures, and underwriting equity and debt issuances. Institutional Trading Institutional Trading Secondary The Global Banking & Markets segment acts as a market maker and executes high-volume institutional trades in fixed income, currency, commodities, and equities for institutional clients. Classified using BQ-MICS CIK: 0000886982
Bull & bear

Investment Thesis

▲ Bull case
  • Goldman Sachs demonstrated exceptional quarterly performance with $17.2 billion in net revenues and $5.6 billion in net earnings, the second highest in its history, driven by record Global Banking & Markets revenues of $12.7 billion and strong Asset & Wealth Management inflows of $62 billion long-term fee-based net inflows, continuing a 33-quarter streak of positive fee-based flows, which signals deep client trust and sustainable revenue generation capabilities beyond cyclical market fluctuations.
  • Strategic acquisitions and partnerships are creating hidden catalysts, notably the closed Innovator acquisition adding $31 billion in assets under supervision across 170 ETFs and positioning Goldman Sachs among the global top 10 active ETF providers, while the Anthropic joint venture with Blackstone and Hellman & Friedman to deploy Claude AI across portfolio companies targets a critical talent bottleneck in enterprise AI adoption, offering scalable, high-margin growth opportunities not fully reflected in current valuations.
  • The firm is strategically capitalizing on secular trends in private credit and alternatives, with $10 billion raised in private credit strategies during the quarter and third-party alternatives fundraising reaching $26 billion, putting it on track toward its long-term $750 billion alternatives AUS target by 2030, supported by a 30-year track record of disciplined underwriting and selective deployment that positions it to benefit from improving lender-friendly spreads and institutional investor demand amid market uncertainty.
  • Geographic expansion in Asia represents a durable growth engine, with record performance in equities and FICC financing driven by strong client engagement and targeted balance sheet deployment, addressing a previously identified competitive gap while leveraging excess capacity, and management highlighted continued opportunity to further expand in the region’s financing businesses beyond current progress.
  • Capital strength provides flexibility for growth and shareholder returns, with a CET1 ratio of 12.5% offering a 110 basis point buffer above the 11.4% requirement, enabling dynamic deployment into client-facing activities like prime brokerage and acquisition financing while maintaining capacity for record shareholder returns, including $5 billion in stock repurchases and $1.4 billion in dividends during the quarter, all supported by a constructive outlook on M&A and IPO activity contingent on macro stability.
▼ Bear case
  • Goldman Sachs faces persistent headwinds in net interest margin compression within private banking and lending, driven by competitive deposit gathering and higher funding costs in a rising rate environment, which management explicitly expects to persist through 2026, directly weighing on profitability in the Asset & Wealth Management segment despite strong lending balances growing to a record $46 billion among ultra-high net worth clients.
  • The fixed income, currencies and commodities (FICC) division experienced a rare stumble with revenue down 10% and $910 million below expectations in the quarter, attributed to being caught offsides on interest rate trades amid shifting inflation expectations post-Iran war oil surge, raising concerns about tactical execution in a core flagship business despite overall diversified strength, and suggesting vulnerability to macro-driven market making backdrops that could recur.
  • Sponsor activity in private equity remains significantly depressed, with management acknowledging it has not accelerated as expected despite a strong M&A quarter, and while the firm views its diversified model as resilient, the lack of meaningful sponsor-driven dealflow represents a tangible upside gap that is not materializing, potentially limiting future investment banking growth beyond corporate-led activity.
  • Provisions for credit losses increased to $315 million, reflecting growth and specific impairments in the wholesale lending portfolio, with management citing a combination of loan growth, single name impairments, and operating environment adjustments, indicating rising credit risk exposure that may not be fully captured by current profitability metrics and could worsen under economic stress.
  • Non-compensation expenses rose $750 million year-over-year, with approximately $650 million stemming from transaction-based expenses tied to robust activity in equities and Asia, signaling that revenue growth is coming with higher operational costs that may pressure the efficiency ratio, which stood at 60.5% in the quarter, and could delay progress toward the long-term 60% efficiency goal despite infrastructure investments.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Money Center Banks
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S.No. Ticker Company Market CapP/EP/STotal Debt (Qtr)
1 BAC Bank Of America Corp /De/ 439.96 Bn13.953.63406.81 Bn
2 MS Morgan Stanley 336.99 Bn17.044.32122.94 Bn
3 GS Goldman Sachs Group Inc 299.92 Bn15.414.53493.51 Bn
4 RY Royal Bank Of Canada 288.24 Bn17.675.61126.20 Bn
5 MUFG Mitsubishi Ufj Financial Group Inc 283.40 Bn17.60-127.69 Bn
6 WFC Wells Fargo & Company/Mn 273.32 Bn12.713.15232.48 Bn
7 SAN Banco Santander, S.A. 219.61 Bn8.261.272,338.17 Bn
8 AXP American Express Co 219.16 Bn19.232.8961.08 Bn