The Goldman Sachs Group, Inc. Q1 FY2026 earnings call

• Strong first quarter performance with net revenues $17.2B, net earnings $5.6B, EPS $17.55. • Macro environment had volatility but global franchise helped. • Large-scale client calls and elevated digital channel engagement. • Global Banking and Markets had record revenues with strong client flows. • Investment Banking #1 M&A adviser globally. • Asset & Wealth Management had $62B long-term inflows, closed Innovator acquisition. • Focus on risk discipline and long-term investment. • One Goldman Sachs 3.0 investment for long-term growth.

Global Banking & Markets: Record quarterly revenues of $12.7 billion, ROE over 22%. Advisory revenues $1.5B (+89% YOY), #1 in M&A globally. Equity underwriting $535M (+45% YOY), debt underwriting $811M (+8%). FICC net revenues $4B, with lower rates and mortgages but better currencies and commodities. Equities net revenues record $5.3B, financing revenues $2.6B (+59% YOY). Asset & Wealth Management: Revenues $4.1B. Management and other fees $3.1B (+14% YOY). Incentive fees $183M. Private banking and lending $638M. Total assets under supervision $3.7T with $62B long-term net inflows. Alternatives: $429B AUM, $26B gross fundraising, $10B private credit. Platform Solutions: $411M, down YOY due to Apple portfolio move.

• Expect full-year tax rate ~20%. • Continue to dynamically deploy capital to support client franchise and return to shareholders. • Encouraged by Basel III finalization and G-SIB surcharge re-proposals as positive for banking system. • See potential for constructive backdrop with fiscal stimulus, AI investment, and balanced regulatory agenda. • Private credit business growing with good secular construct but not a huge growth channel.

• Geopolitical landscape complexity. • Impact of higher energy prices on inflation and growth. • Cybersecurity risks, though Goldman has invested in resources. • Potential slowdown in IPO activity due to geopolitical uncertainty. • Uncertainty in private credit market with retail outflows in some peer funds. • Volatility in markets affecting sentiment and client activity.

Q: Expand on balance sheet strategy, deposit strategy, and ROE impact of lending deployment.

A: Denis Coleman discussed deploying capital for client franchise, deposit growth for funding, and lending activity generating attractive ROEs.

Q: Thoughts on private credit impact on sponsor activity, M&A, IPO, and AI risks to banking.

A: David Solomon said private credit has spreads becoming lender friendly, institutional inflows, but watch retail noise; AI cybersecurity is a focus with investments.

Q: Comment on provisions in Global Banking Markets, CET1 ratio, Fed capital proposals.

A: Denis Coleman explained provisions from growth, impairments, and environment; CET1 ratio at 12.5% with Fed proposals being watched.

Q: Expense outlook, efficiency ratio, AI investments.

A: Denis Coleman talked about non-compensation expenses from transaction-based activity, efficiency focus on 60% ratio, and AI investments for long-term efficiencies.

Q: Asia strategy progress, FICC financing exposure, AWM long-term flows.

A: Denis Coleman said progress in Asia with more to do, FICC financing diversified, AWM long-term flows tracking above target with good client engagement.