New York, Jan 15, 2026, 16:58 (ET) — After-hours
- Goldman Sachs shares jumped roughly 4.6% in after-hours trading following a quarterly profit beat.
- The company raised its quarterly dividend to $4.50 per share, highlighting increased deal activity.
- Traders are keeping an eye on whether strong trading and a surge in M&A activity can persist amid rising costs.
Goldman Sachs shares surged in late after-hours trading Thursday after the bank beat profit estimates for the fourth quarter and boosted its dividend. The stock climbed roughly 4.6% to $975.86.
The results arrive as investors seek confirmation that Wall Street’s deal flow is picking up after a sluggish period that squeezed advisory fees. For Goldman, the key question is mix: will investment banking and markets continue to carry the load as the firm aims for more consistent fee revenue?
This matters now because bank stocks have already surged, raising the stakes. Investors aren’t just looking for a single strong quarter anymore; they want to see if revenue holds steady as trading cools off, and if hiring and wages level out.
Goldman reported diluted earnings per share (EPS) of $14.01 for the quarter on net revenues of $13.45 billion, with net earnings reaching $4.62 billion. The Global Banking & Markets division accounted for $10.41 billion in net revenues. Equities trading revenue climbed to $4.31 billion, while fixed income, currencies, and commodities (FICC) trading revenue hit $3.11 billion, the company said. (SEC)
Platform Solutions, the segment containing the firm’s shrinking consumer business, drove a major swing. Goldman flagged a $2.26 billion markdown linked to the Apple Card loan portfolio and related termination costs. That was balanced by a $2.48 billion drop in credit-loss reserves connected to the same exit.
On the earnings call, CEO David Solomon expressed optimism about major deals ahead. “The world is set up at the moment to be incredibly constructive in 2026 for M&A and capital markets,” he remarked. Stephen Biggar, banking analyst at Argus Research, highlighted the dividend hike as “a powerful testament” to confidence in the durability of earnings. (Reuters)
In prepared remarks, Solomon noted the firm anticipates “momentum to accelerate in 2026,” emphasizing a continued focus on risk management and capital discipline. (Goldman Sachs)
Goldman’s report echoed the upbeat mood on Wall Street. Morgan Stanley also topped forecasts, driven by a surge in investment banking revenue. CFO Sharon Yeshaya noted “an accelerating pipeline in M&A and IPOs.” (Reuters)
Expenses continue to bite. Operating costs climbed this quarter, driven by Goldman citing increased compensation and transaction-related expenses. Investors now face the question: can revenue growth outpace the rising costs of talent and tech?
But the upside case has a clear vulnerability: trading revenue could drop sharply if volatility eases, and dealmaking might slow if rates climb, credit conditions tighten, or CEO confidence wanes. Costs could become a problem fast, especially after a rally that’s already factored in a stronger 2026.
Investors are now focusing less on the recently ended quarter and more on how well Goldman converts its deal backlog and underwriting pipeline. The question is also whether the bank can meet its profitability targets in wealth management amid slowing fee growth. The next clear checkpoint is the increased $4.50 dividend, set to be paid on March 30 to shareholders recorded by March 2.
