The Goldman Sachs Group (NYSE:GS) reported fourth-quarter net income of $4.62 billion, or $14.01 per share, far outpacing Wall Street’s expectations as the firm capitalized on a "dealmaking renaissance" to close out 2025.
The result beat the analyst consensus of $11.77 per share by nearly 20%, marking a triumphant end to a year defined by strategic retrenchment and the recovery of the capital markets.
The earnings boost was driven by a 25% surge in investment banking fees, which reached $2.58 billion.
Goldman also maintained its #1 global ranking in M&A advisory for the year, orchestrating 38 of the world's 68 "megadeals" valued over $10 billion.
Performance was further bolstered by equity trading revenue, which rose to $4.31 billion as investors navigated volatility surrounding shifting interest rate expectations.
A significant tailwind for the quarter was the firm's finalized agreement to transition its Apple Card partnership to JPMorgan Chase.
The move allowed Goldman to release $2.48 billion in loan loss reserves, adding approximately $0.46 to the quarterly earnings per share.
While the exit involved a reduction in net revenue due to markdowns on the loan portfolio, investors cheered the removal of the consumer banking "distraction" from the balance sheet.
For the full year 2025, Goldman reported a profit of $17.18 billion on revenue of $58.28 billion.
Despite the earnings beat, revenue net of interest expense for the quarter was $13.45 billion, slightly missing the $13.61 billion forecast as higher funding costs weighed on net interest income.
However, the firm’s Return on Equity (ROE) hit an annualized 16% for the quarter, firmly at the top end of its long-term target range.
In tandem with the results, Goldman’s board approved a 12.5% increase in its quarterly dividend to $4.50 per share, payable in the first quarter of 2026.