Goldman didn't deliver the blowout earnings that was expected, and the stock is falling

MW Goldman didn't deliver the blowout earnings that was expected, and the stock is falling

By Tomi Kilgore

Markets revenue beat expectations, as investors figured it would due to heightened volatility, but FICC revenue disappointed

Goldman's stock drops after earnings and revenue beat expectations, but not by as much as investors had hoped.

Shares of Goldman Sachs Group took a hit in early trading Monday, as investors appeared to express disappointment that the banking and brokerage giant didn't take more advantage of what was perceived as a positive backdrop.

The first-quarter earnings report was "very strong," according to CEO David Solomon. But, given the volatile markets and a looser regulatory environment - which are good for Goldman - investors appeared to be expecting more. Revenue beat expectations by the narrowest margin in at least five years, not counting misses, according to available FactSet data.

Equities revenue was boosted by market making and convertible-debt offerings, while investment-banking fees surged amid a "significant increase" in completed mergers, which investors were anticipating. But revenue from fixed income, currencies and commodities (FICC) fell, as sharp declines in interest rate products were only partially offset by a strong commodities business.

The stock fell 4% in premarket trading, putting it on track for the worst one-day, post-earnings performance since it slumped 6.4% on Jan. 17, 2023.

Total revenue for the quarter to March 31 grew 14.4% from a year ago to $17.23 billion, above the average analyst estimate compiled by FactSet of $16.99 billion.

Global banking and markets revenue climbed 19% to $12.74 billion, above the FactSet consensus of $12.13 billion. Investment-banking fees jumped 48% to $2.84 billion, while equity-underwriting revenue shot up 44.6% to $535 million and net equities revenue was up 27% to $5.33 billion.

Meanwhile, FICC revenue fell 10% to $4.01 billion, below the FactSet consensus of $4.83 billion, as FICC financing revenue was up 5% to $1.01 billion but FICC intermediation, or market-making revenue, sank 13% to $2.95 billion.

One reason for the drop in FICC intermediation revenue was lower net revenue in credit products. Keep in mind that Goldman had announced in January that it agreed to "transition" the Apple credit card program to JPMorgan Chase $(JPM)$.

Earnings per share for the quarter increased to $17.55 from $14.12 a year ago, to beat the FactSet EPS consensus of $16.47. That was the smallest margin for an EPS beat since the second quarter of 2024.

Also on the downbeat side, provisions for credit losses rose 9.8% to $315 million, above expectations of $150.4 million. The bank attributed the increase to growth and impairments related to wholesale loans.

Among Goldman's other businesses, asset and wealth management revenue rose 10% to $4.08 billion, and platform solutions revenue dropped 33% to $411 million.

Goldman's stock has bucked the weakness in the financial sector, rising 3.3% in 2026. The State Street Financial Select Sector SPDR ETF XLF has shed 7.3% this year to be the worst performer of the SPDR ETFs tracking the S&P 500 index's SPX 11 key sectors. The S&P 500 has eased 0.4% in 2026.

-Tomi Kilgore

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April 13, 2026 08:22 ET (12:22 GMT)

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