Goldman Sachs Group Inc. experienced a mixed outcome in its fiscal 2025 fourth-quarter financial results, leading to a decline in the company’s stock value on Thursday. The quarter was marked by record revenues in certain segments alongside substantial losses within its Platform Solutions business related to the Apple Card loan portfolio transition.
Overall net revenue from continuing operations decreased by 3% year-over-year, totaling $13.45 billion for the quarter, falling short of market expectations, where analysts had projected approximately $13.79 billion. This revenue contraction was primarily influenced by charges attributed to the Apple Card portfolio. Specifically, Goldman Sachs recorded $2.26 billion in markdowns associated with reclassifying Apple Card loans as held-for-sale and incurring costs related to the termination of contractual agreements amid the transition to a new issuer for the card program.
Conversely, the bank’s net interest income demonstrated significant growth, rising to $3.71 billion in the quarter from $2.35 billion in the prior-year period. This increase contributed to the overall profitability of the firm during the quarter.
Operating expenses surged by 18% year-over-year to reach $9.72 billion. This rise was largely driven by elevated compensation and benefits costs as well as increased expenses tied to transaction volume, reflecting heightened activity in several of Goldman Sachs’ business lines.
Reflecting on credit quality provisions, Goldman Sachs reported a net benefit of $2.12 billion during the quarter, a notable improvement compared to net provisions of $351 million a year prior, which positively impacted the firm’s bottom line for the period.
On a reported earnings basis, the company delivered GAAP earnings per share of $14.01, outperforming the consensus estimate of $11.65 and exceeding the $11.95 per share recorded in the previous year’s corresponding quarter. Despite the challenges faced in Platform Solutions, the firm’s earnings growth demonstrated resilience.
Efficiency metrics showed modest improvement, with the firm’s efficiency ratio advancing to 64.4% for 2025, compared to 63.1% in 2024, indicating ongoing efforts to manage costs relative to revenue generation.
From a capital perspective, Goldman Sachs maintained strong regulatory capital ratios in the quarter. The Standardized Common Equity Tier 1 (CET1) capital ratio stood at 14.4%, while the Advanced CET1 ratio was reported as 15.0%, reflecting a solid capital position as per regulatory benchmarks.
The firm’s assets under supervision (AUS) hit a record $3.61 trillion. This milestone represents the 31st consecutive quarter of positive net inflows into long-term fee-based investment products and custodial assets, highlighting sustained client trust and engagement.
Management outlook
David Solomon, Goldman Sachs’ Chairman and CEO, emphasized the firm’s strategic progress since the initial Investor Day announcement. He noted that revenue growth had reached 60% with returns improving by 500 basis points, and total shareholder returns exceeding 340%, underscoring strong operational execution. Solomon also highlighted ongoing high levels of client engagement and anticipated accelerating momentum in 2026, which is expected to stimulate activity across the company’s diverse business segments.
Segment performance
Within the Global Banking and Markets division, revenue climbed 22% year over year to $10.41 billion. This growth was driven by a 25% increase in investment banking fees alongside substantial gains in fixed income, currency, and commodities trading (FICC), which rose 12%, and equities trading revenues, which increased by 25%. These segments collectively contributed to the firm’s record trading figures during the quarter.
The Asset and Wealth Management segment reported relatively stable revenues at $4.72 billion. The composition of this figure included a decrease in investment net revenues that was largely offset by increases in management fees and related revenues. Client assets in wealth management were approximately $1.9 trillion, signaling continuing investor confidence in the firm’s wealth platform.
Platform Solutions, however, reported negative revenue of $(1.68) billion compared to positive $592 million a year earlier. This reflection largely resulted from the substantial losses related to the Apple Card program exit and repositioning.
Capital return and dividend updates
Throughout fiscal 2025, Goldman Sachs returned $16.78 billion to shareholders. This comprised $12.36 billion in share repurchases and $4.42 billion paid out as dividends, illustrating the company’s commitment to shareholder value.
On January 14, the Board announced an increase in the quarterly dividend from $4.00 to $4.50 per common share, payable on March 30, 2026, to shareholders of record on March 2, 2026.
Additional financing moves
According to reports citing informed sources, Goldman Sachs is seeking to raise at least $12 billion through an investment-grade bond issuance. Details regarding the terms and timing have not been disclosed, but such fundraising initiatives typically aim to strengthen liquidity or support business activities.
Market reaction
Following the earnings announcement, Goldman Sachs’ shares declined by approximately 1.57% to $918.02 during Thursday trading hours, reflecting investor focus on the challenges in the Platform Solutions segment despite overall strong financial results.