Goldman Sachs 10-Qquarter ended 2026-06-30

Positive

Equities and investment banking drove growth; Apple Card’s held-for-sale shift helped lower credit provisions.

Filed 2026-08-03 17:24 ET

Key figures · Q2 FY2026 · period ended 2026-06-30

Net revenue$20.3B¹YoY +39.5%QoQ +18.1%
Net income$6.6B²YoY +78.0%QoQ +17.7%
Total assets$2.1TYoY +19.2%QoQ +3.3%

Total debt

How total debt adds up
Unsecured short-term borrowings	$89,911M
+ Unsecured long-term borrowings (includes $144,703 and $112,683 at fair value)	$347,963M
+ Other secured financings (includes $34,865 and $27,833 at fair value)	$35,081M
Total debt	$472,955M

Lines as the filer presents them on its balance sheet.

$473.0B³YoY +27.5%QoQ +9.3%

Shareholders' equity$122.7BYoY −1.1%QoQ 0.0%
Tangible book value$113.5B⁴YoY −8.6%QoQ −1.6%

Notes (4)

Net revenue: Net interest income plus non-interest income, as the filer presents them.
Net income: About the summary: The summary's $6.40B is earnings to common shareholders after preferred dividends; net income of $6.63B is before preferred dividends.
Total debt: Unsecured short-term borrowings, including the current portion of unsecured long-term borrowings (this filer's own balance-sheet line, not a standard concept), plus unsecured long-term borrowings. Excludes deposits, repurchase agreements, federal funds purchased and securities loaned. About the summary: The summary's $438B is unsecured borrowings; total debt of $472.95B also includes FHLB advances, subordinated debt and finance leases.
Tangible book value: From the notes to the financial statements; the balance sheet does not present this as a separate line.

How this filing reads

Health+0.1The supplementary leverage ratio is 4.3% against a 3.75% requirement; CET1 fell to 12.9%.
Momentum+0.8Q2 revenue rose 39%, common earnings rose 84%, and efficiency improved to 57.4%.
Outlook+0.3Management expects full-year fundraising above $125B; the Apple Card transition may take approximately 24 months.

Executive Summary

Goldman Sachs delivered exceptional Q2 growth, with revenue up 39% and earnings to common shareholders up 84%, driven primarily by investment banking and equities activity. Revenue outpaced expenses, but lower credit provisions also reflected the Apple Card portfolio’s accounting transition rather than solely improved credit performance. Management is expanding asset and wealth management while exiting consumer-card activities, creating opportunities for more recurring fees alongside its market-sensitive franchise. For investors, the central trade-off is stronger profitability and capital returns against a rapidly expanding balance sheet, higher leverage and thinner regulatory capital buffers.

Key Financial Highlights

Metric	Q2 2026 / H1 2026, or 6/30/2026 balance	Investor interpretation
Net revenue	Q2 $20.3B, +39% Y/Y; H1 $37.6B, +27%	Trading and investment banking led growth.
Pre-tax earnings	Q2 $8.56B, +73%; H1 $15.0B, +42%	Revenue growth exceeded expense growth.
Earnings to common shareholders	Q2 $6.40B, +84%; H1 $11.8B, +46%	Lower provisions amplified operating gains.
Diluted EPS	Q2 $20.98 vs $10.91; H1 $38.51 vs $25.07	Fewer diluted shares also supported growth.
Efficiency ratio	Q2 57.4% vs 63.4%; H1 58.8% vs 62.0%	Improved despite higher compensation and transaction costs.
Total assets	$2.13T, +18% since year-end	Expansion increased funding and capital demands.
Total shareholders’ equity	$123B, broadly flat	Equity did not keep pace with asset growth.
Tangible common shareholders’ equity	$100B vs $103B at year-end	Capital returns and acquired intangibles reduced the tangible base.

Cash conversion: H1 net earnings $12.3B vs OCF $(25.8)B; capital expenditures $1.07B → FCF $(26.8)B. Trading-asset growth was a major cash use; financing inflows of $135B supported balance-sheet expansion.
Capital return: H1 repurchases $9.00B; common shares outstanding fell 1.7% to 291M, net of issuance. The quarterly dividend increases to $5.00 from $4.50 beginning Q3.
Credit provisions: Q2 $102M vs $384M; H1 $417M vs $671M. Prior-year provisions included credit-card reserves, while 2026 primarily reflected wholesale lending after Apple Card moved to held for sale.
Acquisition accounting: Goodwill increased to $7.34B from $5.95B and identifiable intangible assets to $1.93B from $0.842B, primarily from asset-management acquisitions.

Business Developments

Global Banking & Markets: Q2 revenue $15.5B, +53% Y/Y, representing 76% of firm revenue. Equities revenue rose 72% to $7.42B and investment banking fees rose 55% to $3.40B; a higher fees backlog supports opportunity, but does not guarantee conversion into revenue.
Asset & Wealth Management: Q2 revenue $4.60B, +20%; H1 $8.68B, +15%. Assets under supervision reached $4.04T, with H1 net inflows of $317B vs $29B. Industry Ventures and Innovator broaden venture-capital and active exchange-traded fund capabilities; management-fee growth supports diversification, although private-equity gains also contributed to results.
Consumer exit: Platform Solutions Q2 revenue fell 64% to $221M, primarily reflecting Apple Card markdowns. Management expects the issuer transition to finish ≈24 months after the December 2025 agreement, leaving a lengthy execution period before this exposure is resolved.

Risk Assessment

Capital capacity: Standardized common equity tier 1 capital fell to 12.9% from 14.3%, while the supplementary leverage ratio declined to 4.3% against a 3.75% requirement; growth and distributions could constrain future flexibility.
Funding dependence: Unsecured borrowings rose 23% to $438B and deposits rose 11% to $558B; $101B of time deposits mature during the remainder of 2026, creating substantial refinancing needs.
Market cyclicality: Q2 average daily value at risk increased to $120M from $98M Y/Y; geopolitical, monetary and trade-policy shocks could hurt trading valuations and client activity.
Credit and counterparties: Loan and lending-commitment exposure increased to $638B from $563B; assigning 100% weight to the adverse scenario would increase credit-loss allowances by ≈$0.6B.
Valuation uncertainty: Level 3 liabilities rose to $44.7B from $32.1B; significant unobservable inputs create model sensitivity, although related positions may offset reported valuation movements.
Legal exposure: The estimated upper end of losses for certain estimable matters was ≈$1.1B above reserves, while other proceedings remain unquantifiable and could produce earnings volatility.

A 10-Q does not have to restate the risk factors in the annual report. Full list: FY2025 10-K.

Strategic Outlook and Investor Actionables

Management is betting on sustained banking and markets activity, larger fee-generating asset-management businesses and withdrawal from consumer cards. The opportunity is a more profitable, diversified franchise; the threat is that cyclical revenues weaken before diversification and the consumer exit offset expanding capital demands.

Banking and markets durability: Starting from Q2 revenue of $15.5B and investment banking fees of $3.40B, subsequent filings should show backlog converting into fees and resilient equities activity; declining fees and trading revenue would challenge earnings durability.
Asset-management monetization: H1 alternatives commitments raised were $85B; management expects full-year fundraising above $125B. Success means continued inflows and management-fee growth, rather than earnings relying increasingly on investment gains.
Apple Card exit: Platform Solutions begins from Q2 revenue of $221M and ongoing markdowns. Progress means completing the transition within management’s expected window with diminishing valuation drag; delays or further markdowns weaken the exit thesis.
Capital discipline: Standardized common equity tier 1 capital starts at 12.9%. Stabilizing capital while supporting growth and shareholder returns would validate allocation discipline; further erosion would signal pressure on distributions or expansion.

Figures are computed from the filing's XBRL data; the summary and scores are written by an AI model reading the filing.

Model 006 · prompt 3de311c12b