Goldman Sachs delivers the best quarter of its 157 year history with 20.34 billion dollars

Goldman Sachs generated net revenue of 20.34 billion dollars in the second quarter of 2026. Diluted earnings per share came in at 20.98 dollars. Both figures clearly beat analyst expectations and mark the strongest quarterly performance since the bank was founded 157 years ago.

The figures were published on 14 July.

The short version

• Goldman Sachs generated net revenue of 20.34 billion dollars in the second quarter of 2026, with diluted earnings of 20.98 dollars per share.
• The jump was carried by trading and by advising on large transactions, among them the SpaceX listing on 12 June.
• JPMorgan reported 6.14 dollars per share for the same quarter against an estimate of 5.79 dollars.

Trading and listings drive the result

The jump in earnings does not come from the classic lending business. It is carried by trading and by advising on large transactions.

Both depend directly on market conditions. When prices move sharply, trading volume rises and with it the earnings of every bank acting as an intermediary. When valuations are high, more companies dare to go public.

One event weighs particularly heavily here. The listing of SpaceX on 12 June was the largest in history up to that point. The shares were issued at 135 dollars and the first quote was 150 dollars. In the same month the company issued bonds worth 25 billion dollars in five tranches.

Shortly afterwards Goldman Sachs appeared together with JPMorgan, Morgan Stanley and Citigroup as lead manager of the Intel share sale. That was raised from 15 to 20 billion dollars because orders of around 100 billion dollars were on the books.

The whole sector is earning well right now

The result does not stand alone. JPMorgan Chase reported adjusted earnings of 6.14 dollars per share for the same quarter against a consensus estimate of 5.79 dollars. Managed revenue rose to 58.02 billion dollars, where 50.20 billion had been expected.

At Morgan Stanley analysts expected 2.89 dollars per share on revenue of 19.38 billion dollars, which would have corresponded to a jump in profit of 35.7 percent. In the first quarter wealth management alone had produced record revenue there of 8.5 billion dollars, with net inflows of 118 billion dollars.

JPMorgan last closed with a market value of 965 billion dollars and is therefore around 35 billion short of the one trillion mark. No lender has reached that level so far.

Why quarters like this are hard to repeat

When reading a record result in investment banking it is worth looking at where the earnings come from.

Trading revenue and fees from listings depend on market activity and cannot be planned. A single listing on the scale of SpaceX does not come along every year. When markets calm down, both sources of earnings fall at the same time.

That sets such results apart from the net interest income of a commercial bank, which flows comparatively steadily over years. JPMorgan has raised its outlook for net interest income in 2026 to around 105.5 billion dollars, after 103 billion previously.

A warning comes from within the sector. The chief executive of JPMorgan, Jamie Dimon, points out that it is not only visible borrowing through securities lending but above all hidden borrowing that raises the risk of market dislocations.

A contrast on the same morning

How much the record report depended on the general situation showed hours later on the same day. IBM published a profit warning and lost 25.21 percent. It was the heaviest single day loss in the history of the technology group.

So on a single trading day two extremes stood opposite each other. An investment bank that profits from market movement and listings, and a technology group whose customers had shifted their budgets at short notice.

Frequently asked questions

Where does the record result come from

Not from the classic lending business but from trading and from advising on large transactions. The listing of SpaceX on 12 June, the largest in history up to that point, weighs particularly heavily. Shortly afterwards Goldman Sachs acted as lead manager of the Intel share sale.

Why are quarters like this hard to repeat

Trading revenue and fees from listings depend on market activity and cannot be planned. A single listing on the scale of SpaceX does not come along every year. When markets calm down, both sources of earnings fall at the same time.

How did the other houses do

JPMorgan Chase reported adjusted earnings of 6.14 dollars per share for the same quarter against a consensus estimate of 5.79 dollars. At Morgan Stanley analysts expected 2.89 dollars per share on revenue of 19.38 billion dollars.

This analysis is for information only and is not investment advice.