Goldman Sachs Soars: Strong Q2 Performance Demonstrates Resilience Amid Market Uncertainty
Goldman Sachs delivered a stellar performance in the second quarter of 2025, with net revenues reaching $14.6 billion and earnings per share coming in at $10.91. The company's return on equity (ROE) for the period was a impressive 12.8%, with an even higher ROE of 14.8% recorded for the first half of the year.
Chairman and Chief Executive Officer, David Solomon, attributed the strong results to the firm's best-in-class talent, culture of collaboration, and differentiated business across investment banking, financing, risk intermediation, and asset and wealth management. He noted that Goldman Sachs' global client franchise has never been stronger, with clients relying on the company for their most consequential transactions.
Investment Banking was a standout performer in Q2, with announced M&A volumes for the year-to-date coming in 30% higher than last year's levels and 15% greater than the comparable five-year average. The deal-making environment has been remarkably resilient, despite some uncertainty in certain industries sensitive to trade policy. Solomon highlighted two high-profile deals - NRG Energy's $12 billion portfolio acquisition from LS Power and Salesforce's $8 billion acquisition of Informatica - as examples of clients turning to Goldman Sachs for their most consequential transactions.
The company also saw a pickup in momentum with both strategic and sponsored clients, with capital markets activity accelerating during the quarter. Eleven IPOs were priced for clients around the globe, including Circle, Shine, eToro, and HDB Financial Services, which have performed well in the secondary market. Goldman Sachs' client engagement continues to be elevated, with its advisory backlog rising for a fifth consecutive quarter driven by advisers.
In addition to investment banking, Goldman Sachs' leading second equities businesses produced very strong results in Q2 as policy uncertainty drove clients to reposition portfolios and recalibrate risks across asset classes. The company's financing businesses also hit a revenue record this quarter, with FICC financing and equity financing continuing to grow.
Asset and Wealth Management saw momentum in alternatives, with $18 billion raised this quarter driven by demand for flagship funds across strategies including secondaries, hybrid capital, and growth equity. Wealth Management client assets rose to a record $1.7 trillion, with loan balances of $42 billion and assets under supervision reaching a new record of $3.3 trillion.
Goldman Sachs' Chairman and CEO, David Solomon, expressed optimism about the overall investment banking outlook and the company's position to assist clients in executing on their strategic ambitions. He also highlighted the potential for further growth across alternatives, wealth management, and solutions, which will fuel more durable revenues across the platform.
As the company continues to invest in AI, Solomon noted that it is quickly developing into an economic force that will permeate every industry, offering opportunities across Goldman Sachs' platform. With its strong track record of long-term fee-based net inflows and a 30th consecutive quarter of such growth, Goldman Sachs remains a leader in the financial services space.
