Goldman Sachs Group (NYSE:GS) reported stronger-than-expected first-quarter results, but its shares dropped 3.8% following the announcement.
The bank posted earnings per share of $17.55 for the period ending March 31, comfortably ahead of the $16.47 consensus forecast. Revenue came in at $17.23 billion, also topping estimates of $16.95 billion and rising 14% from $15.09 billion in the same quarter last year.
Growth was largely driven by the Global Banking & Markets division, which generated $12.74 billion in net revenue, up 19% year-on-year. Investment banking fees jumped 48% to $2.84 billion, supported by stronger advisory activity amid increased mergers and acquisitions. Equities trading revenue rose 27% to $5.33 billion, while FICC revenue declined 10% to $4.01 billion.
“The firm’s Investment banking fees backlog decreased slightly compared with the end of 2025,” the company said in its earnings statement.
Asset & Wealth Management revenue increased 10% to $4.08 billion, benefiting from higher fee income as assets under supervision grew. Meanwhile, Platform Solutions generated $411 million in revenue, down from $610 million a year earlier, primarily due to markdowns related to the Apple Card loan portfolio.
Operating expenses rose 14% to $10.43 billion, reflecting higher transaction-related costs and increased compensation linked to stronger performance. The firm’s efficiency ratio stood at 60.5%, broadly unchanged from 60.6% in the prior-year quarter.
Goldman Sachs also declared a quarterly dividend of $4.50 per share.