1Q25 Revenue: $15.06B, +6.0% YoY, beat estimates by $350M
1Q25 GAAP EPS: $14.12, beat estimates by $1.85
2Q25 Guidance: Expect a severance charge of $150 million and set aside $287 million in provisions for credit losses, compared with $318 million last year
Dividend distribution: Declared $3.00/share quarterly dividend, in line with previous, payable 27 June; for shareholders of record 30 May.
Share repurchase: Approved a $40B share buyback
Comment: Goldman Sachs exceeded first-quarter earnings expectations with EPS of US$14.12, up 15% YoY and beating consensus by US$1.85, driven by record equities trading revenue, which surged 27% amid elevated market volatility. Fixed income trading also posted a modest 2% increase. However, investment banking fees fell 8% due to weaker advisory activity, while asset and wealth management revenue declined 3% on the back of investment losses. The bank continues to navigate challenges stemming from new U.S. tariffs, which have pressured capital markets and dampened IPO and M&A activity. Despite these headwinds, Goldman reported strong client engagement and a growing deal backlog. The firm approved a US$40bn stock buyback and set aside US$287mn in credit loss provisions, primarily related to its credit card portfolio. It also announced planned staff reductions, anticipating US$150mn in severance costs in the second quarter. Looking ahead, Goldman Sachs faces a clouded near-term outlook due to persistent policy uncertainty, inflation risks linked to tariffs, and subdued investment banking activity. Nonetheless, continued strength in equities trading and resilient client demand could provide support as the bank navigates the complex macroeconomic environment. 2Q25recommended trading range: $500 to $550. Positive Outlook.
