Goldman Sachs CEO Sees 'Markedly Different Operating Environment' Entering Q2, Announces $40 Billion Stock Buyback

Goldman Sachs Group Inc. GS shares are trading higher on Monday after the company reported its first-quarter results.

Revenue of $15.06 billion beat the consensus of $14.81 billion. Revenue increased by 6% year-over-year, reflecting growth in Global Banking & Markets. Net interest income rose to $2.90 billion, up from $1.37 billion a year ago quarter.

Goldman Sachs clocked GAAP EPS of $14.12, beating the consensus of $12.35.

Provision for credit losses was $287 million for the first quarter, lower than $318 million a year ago quarter, reflecting net provisions related to the credit card portfolio.

Segment Revenues: Global Banking & Markets revenues were $10.71 billion, up 10% year-over-year. Net revenues from Equity grew 27% year-over-year to $4.19 billion, reflecting significantly higher net revenues in intermediation and financing.

Also, net revenues in Fixed Income, Currency, and Commodities (FICC) were $4.40 billion, up 2% year-over-year, primarily reflecting higher net revenues in FICC financing.

On the other hand, Investment Banking fees declined 8% year over year to $1.91 billion due to a considerable decline in net revenues in the Advisory business. Investment banking fees backlog increased compared with the end of 2024.

Asset & Wealth Management revenue was $3.68 billion, down 3% year over year. Total Wealth management client assets stood at ~$1.6 trillion.

In the first quarter, total Assets Under Supervision (AUS) saw a net inflow of $24 billion. AUS increased by $36 billion to a record $3.17 trillion in the quarter.

Stock Buyback: In the first quarter, Goldman Sachs repurchased stock worth $4.36 billion. In the quarter, the Board approved a new share buyback program of up to $40 billion.

Dividend: On April 11, 2025, the Board declared a dividend per share of $3.00, payable on June 27, 2025, to shareholders of record as of May 30, 2025.

The Standardized CET capital ratio stood at 14.8%, and the Advanced CET capital ratio increased sequentially to 15.5%. The book value per common share increased 2.2% to $344.20.

David Solomon, Chairman and CEO of Goldman Sachs, said, "While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients."

On the conference call, CEO Solomon said he expects significant M&A activity throughout the rest of the year.

Investors can gain exposure to the Goldman Sachs stock via Shares U.S. Broker-Dealers & Securities Exchanges ETF IAI, and Invesco KBW Bank ETF KBWB.

Price Action: GS shares are up 2.38% at $505.69 at the last check Monday.

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