Goldman Sachs (NYSE: $GS), a leading global investment bank and financial services provider, reported its first quarter fiscal 2025 results on Monday, April 14, 2025, before markets opened. Here is a deep dive into those results.
Goldman Sachs Q1 Results
For the first quarter of fiscal year 2025, Goldman Sachs reported a 15% YoY increase in revenue to $15.06 billion, topping estimates of $14.98 billion, while EPS came in at $14.12, beating estimates of $12.31. The banking giant reported an ROE of 16.9% for the quarter.
Segment Performance
Global Banking & Markets segment revenue was up 10% YoY to $10.71 billion, with Investment banking fees of $1.91 billion, an 8% YoY decline, primarily driven by a 22% YoY decline in Advisory revenue.
The Asset & Wealth Management segment saw revenue decline 3% YoY to $3.68 billion and 22% compared to Q424. Finally, the Platform Solutions segment saw revenue dip 3% YoY to $676 million.
Other Q1 Highlights
Goldman Sachs reported a 5% YoY increase in operating expenses to $9.13 billion, with the efficiency ratio declining to 60.6% in Q1 compared to 60.9% in the same period last year.
It ended the quarter with $441 billion in global core liquid assets compared to $422 billion in the fourth quarter of fiscal year 2024. Total assets under supervision increased by $36 billion to a record $3.17 trillion.
The company set aside $287 million in provisions for credit losses in Q1, compared to $318 million in Q124 and $351 in the fourth quarter of fiscal 2024.
Shareholder Returns
The board approved a payout of $3 per share, and returned $5.34 billion to shareholders, which includes $4.26 billion in share buyback, and $976 million in dividends. Goldman Sachs’ board also approved a new share buyback program of up to $40 billion of common stock.
Goldman Sachs (GS) Market Performance
Following the better-than-forecast results, GS shares rose 1.20% during the morning trading session on April 14, 2025 to $500.38 per share as of 10:00 AM in New York.
GS stock is now down 12.62% year to date, and 4.28% in the past six months. Over the past 12 months, the stock has risen 28.47%. Its current price is below the 50 and 200-day moving average of $581.82, and $544.91, respectively.
Analysts remain optimistic about the future of GS stock, giving it a moderate buy rating. They forecast an average price of $634.13, which is a 25.82% upside based on the most recent price. The analysts have set a wide range of price targets, with a high of $760.00, and a low of $550.00.
Is GS A Buy After The Latest Results?
Goldman Sachs has had a positive rise in the past 12 months. A potential drop in interest rates and encouraging news on the long-term outlook for tariffs could potentially lead to a surge in the stock price in the long term. While investors might be hesitant to purchase GS at its current levels, it is trading at a reasonable trailing P/E of 12.20, making it a potentially great addition to a long-term investment portfolio.
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