Goldman Sachs Q2 2026 profit surges 78% on trading rally
Net revenue climbs 39.5% to $20.34 billion as assets under supervision hit $4.04 trillion, while operating costs rise on higher compensation.
Goldman Sachs has reported a sharp increase in second-quarter 2026 net earnings, rising 78.2% year-on-year to $6.63 billion. The US-based investment bank attributed the surge to a booming trading environment and continued expansion in its asset and wealth management divisions. Net revenue for the quarter ended 30 June 2026 climbed 39.5% to $20.34 billion, underscoring the firm’s ability to capitalise on market volatility and client activity.
Assets under supervision reached $4.04 trillion as of the end of June, supported by $230 billion in net inflows and $161 billion in market appreciation. The Global Banking & Markets division was a primary contributor to the top-line growth, generating $15.52 billion in revenue, a 53% increase from the same period last year. Meanwhile, Asset & Wealth Management produced $4.6 billion in revenue, up 20% from the second quarter of 2025.
Operating costs rose 26% year-on-year to $11.67 billion, a figure largely driven by higher compensation and benefits. The bank noted that these expenses reflected stronger operating performance and transaction-based costs. Despite the rise in costs, the provision for credit losses fell significantly to $102 million from $384 million in the second quarter of 2025. The previous year’s higher provision was largely tied to the credit card portfolio, which was moved to held for sale in the fourth quarter of 2025.
In a move to return capital to investors, Goldman Sachs distributed $5.36 billion to common shareholders through a combination of buybacks and dividends. The bank repurchased $4 billion worth of shares, covering 4.1 million units at an average price of $984.57, and paid $1.36 billion in dividends. Headcount decreased by 2% compared to the end of the first quarter of 2026.
CEO David Solomon described the quarter’s results as a record performance, citing the strength of the firm’s global franchise and accelerating momentum across businesses. He highlighted that clients are increasingly turning to the bank for strategic transactions, which he expects will drive continued activity. The quarter also saw leadership adjustments, with Stephan Feldgoise and Joshua Schiffrin joining the management committee, and Ericka Leslie appointed as chief administrative officer. For the first six months of 2026, the bank posted total net revenue of $37.57 billion and net profit of $12.26 billion.
