The Goldman Sachs Group . Pfd 1/1000 C Stock Earnings Reports

Goldman Sachs reported a very strong Q1 2026: net revenues of $17.2 billion, net earnings of $5.6 billion and EPS of $17.55 (all the second-highest in firm history), producing a 19.8% ROE (21.3% ROTE). Global Banking & Markets delivered record quarterly revenues ($12.7B) and >22% ROE driven by strong equities (record $5.3B) and elevated financing activity (FICC & equities financing up materially, with Asia highlighted as a strategic growth focus). Investment Banking remained #1 in M&A with a robust backlog. Asset & Wealth Management saw $62B of long-term fee-based inflows (33rd consecutive quarter), record AUM/AUS ($3.7T total, $429B alternatives) and $26B raised in alternatives (including $10B for private credit). The firm closed the Innovator deal (adds ~$31B AUS, ETF scale). CET1 was 12.5% (110 bps above the firm’s current requirement); RWAs rose (prime/ acquisition financing and market risk), and the firm returned $6.4B to shareholders including a record $5B of buybacks. Management emphasized disciplined risk management, selective balance sheet deployment to client-facing financing, accelerated investments in cloud/data/AI under “One Goldman Sachs 3.0” to drive longer-term efficiency, and engagement with regulatory reforms (Basel III finalization / G-SIB reproposal). Headwinds/risks called out: increased volatility (AI disruption concerns), geopolitical uncertainty (Middle East), private credit/retail redemption headlines (management argues Goldman’s institutional-heavy, diversified private credit platform is resilient), NIM compression in AWM due to competitive deposit pricing, and higher near-term non-compensation expenses tied to transaction activity. Management reiterated focus on driving toward a ~60% efficiency ratio over time while investing to capture AI-driven productivity and franchise growth.