New York, July 14, 2026, 09:08 EDT
- GS posted record Q2 earnings, raising trailing EPS to $64.79. That move dropped the premarket P/E to roughly 16.8x, down from 19.1x at Monday close.
- Tangible book value per share inched up 0.1% since March, putting the stock at about 3.2 times tangible book.
- Goldman Sachs said equities made up 54% of its year-over-year revenue growth. Capital given back to shareholders matched 84% of common earnings.
Goldman Sachs NYSE:GS has taken away a key simple valuation complaint. The stock traded at $1,086 before the open, putting Tuesday’s reported $20.98 in quarterly earnings per share against trailing earnings of $64.79 for a P/E of about 16.8. That’s down from 19.1 at Monday’s close, even after the stock rose 3.8%. The earnings shift outpaced the move in the share price.
But that still leaves the book value issue open. A Seeking Alpha note out on Monday downgraded Goldman to Sell, flagging its 19.3-times trailing multiple and price-to-tangible-book at 3.1 as signs of “severe overvaluation.” The latest quarter trims that first ratio, but tangible book value per share was up just 33 cents since March. That’s where the discussion is now. Seeking Alpha
Goldman posted revenue of $20.34 billion, up 39%. Net earnings jumped 78% to $6.63 billion. EPS came in about 45% above the $14.48 analyst consensus. Revenue outpaced a 26% bump in operating expenses, pushing pre-tax earnings up 73%. Return on common equity hit 23.5%, with return on tangible equity at 25.5%. The big beat reset the firm’s valuation this quarter.
| Valuation measure | July 13 close | After Q2, 09:06 EDT premarket |
|---|---|---|
| Share price | $1,045.91 | $1,086.00 |
| Trailing EPS | $54.72 | $64.79 |
| Price/earnings | 19.1x | 16.8x |
| Tangible book value per share | $336.28 | $336.61 |
| Price/tangible book | 3.11x | 3.23x |
The ratios after results are based on the actual quarterly EPS and tangible book numbers, not on company projections. Market data services can update trailing numbers on their own schedules.
Trailing P/E is share price over earnings from the last 12 months. Swapping out last year’s Q2 EPS of $10.91 for this quarter’s $20.98 puts an extra $10.07 in the denominator, which cuts the multiple by around 12% even with shares up premarket. The 19-times figure is out of date now. Timing is a big factor.
Capital returns are part of why Goldman’s earnings aren’t matching up with tangible book growth. Goldman gave back $5.36 billion to common shareholders, about 84% of its $6.40 billion in common earnings. That includes $4 billion of buybacks at an average $984.57 per share. The buybacks were at 2.93 times quarter-end tangible book. This helps EPS, but limits tangible book growth. Investors are looking for evidence these high returns can last.
Most of the record jump came from one spot. Global Banking and Markets brought in $5.39 billion, accounting for 94% of the company’s $5.76 billion revenue growth from a year ago. Equities made up $3.12 billion of that, over half the gain. One business was behind most of the move.
| Revenue engine | Q2 2026 revenue | Change from Q2 2025 | Share of total revenue growth |
|---|---|---|---|
| Equities | $7.42 bln | up $3.12 bln | 54% |
| Investment-banking fees | $3.40 bln | up $1.20 bln | 21% |
| Fixed income, currencies and commodities | $4.59 bln | up $1.11 bln | 19% |
| Asset and Wealth Management | $4.60 bln | up $0.77 bln | 13% |
| Platform Solutions and other | $0.34 bln | down $0.44 bln | -8% |
| Total | $20.34 bln | up $5.76 bln | 100% |
Goldman’s second-quarter segment revenue numbers used for calculations; rounding may mean totals aren’t exact.
In equities, intermediation revenue jumped 60%, while financing revenue, which covers funding and services for big trading clients, was up 91%. Equity-underwriting fees hit $985 million, more than double, as SpaceX NASDAQ:SPCX listed. Total investment-banking fees climbed 55% to $3.40 billion. The results show both more client activity and increased use of Goldman’s balance sheet in a volatile market.
Chief Executive David Solomon said momentum picked up across Goldman’s businesses and said he sees the firm’s “flywheel of activity” carrying on. Goldman reported its investment-banking backlog grew compared with March and the end of 2025. The pipeline helps, but deals aren’t counted as revenue until they close. Goldman Sachs
Goldman wasn’t the only bank to see a jump. JPMorgan Chase NYSE:JPM reported equities trading up 86%, and Bank of America NYSE:BAC said activity rose 70% as wild markets pushed clients to trade more. That means Goldman’s gains probably aren’t a one-off, but it could mean several banks are pocketing profits from the same short-lived volatility spike. The figures point to a wider sector trend.
Goldman’s steadier unit kept growing. Asset and Wealth Management revenue jumped 20% to $4.60 billion, with management fees hitting a record $3.36 billion. Assets under supervision hit $4.04 trillion after $91 billion in long-term net inflows. Still, Global Banking and Markets drove 76% of group revenue and about 88% of pre-tax profit. Diversification is underway, but not finished.
Equity volatility might ease, public offerings could drop off, and big deals risk delays from financing, regulation, or weaker markets. Goldman warned its deal pipeline can change or may not deliver expected fees, especially if geopolitical tension, tariffs, or markets get worse. If tangible returns slip to the 15% full-year mark seen in 2025 and the shares keep trading above three times tangible book, that valuation looks tougher to justify.
Right now, the blowout quarter cancels out the bear case for Goldman’s 19-times-earnings valuation, but doesn’t show if these earnings can last. Investors aren’t putting that multiple on past profits any more; they are betting about 3.2 times tangible book that Goldman can do it again. Market focus is on whether the bank can keep it up.
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