Goldman Sachs Group, Inc. (NYSE:GS) delivered a mixed close to fiscal 2025, with fourth-quarter results weighed down by sizable markdowns and exit costs tied to its consumer platform.
On Thursday, the bank reported mixed fourth-quarter fiscal 2025 results due to losses in Platform Solutions on $2.26 billion in markdowns tied to transferring Apple Card loans to held-for-sale status and contract termination costs.
Net revenue declined 3% year over year (Y/Y) to $13.45 billion, missing the consensus estimate of $13.79 billion. GAAP earnings came in at $14.01 per share, up from $11.95 a year ago and above the $11.65 consensus.
Bank of America Securities analyst Ebrahim H. Poonawala raised the price forecast for the company to $1,100 from $1,050, while keeping a Buy rating.
Analyst View
The analyst writes that positive EPS revisions continue to be the primary factor influencing stock performance, as Goldman has exceeded consensus EPS estimates by roughly 15% on average over the last four quarters.
Poonawala writes that Goldman Sachs is well-positioned for potentially stronger-than-expected EPS growth in 2026.
The analyst cites solid quarterly results, increased momentum in M&A and IPO activity, a more favorable regulatory environment, and management's emphasis on consistent growth and profitability as tailwinds.
Estimates
For fiscal year 2026, the analyst projects 15% growth in investment banking and 3% in markets, which may be conservative if no major macro shocks occur.
Strong demand from strategic and sponsor clients, a supportive regulatory environment, falling rates, and stable equity markets should drive deal activity, adds the analyst.
While investment banking contributes only ~15% to total revenues, these generate ancillary revenue opportunities across financing, trading, and wealth management, the analyst notes.
The analyst raised fiscal year 2026 EPS estimates to $58.64 from $57.30 on slightly higher revenue growth, keeping fiscal year 2027 EPS unchanged at $67.30 (8.1% above consensus).
GS Price Action: Goldman Sachs Group shares were down 1.15% at $964.60 at the time of publication on Friday. The stock is trading near its 52-week high of $981.25, according to Benzinga Pro data.
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