Goldman Sachs Exceeds Q4 Wall Street Estimates Amid Consumer Banking Challenges
Renowned financial powerhouse, Goldman Sachs, has exceeded Wall Street’s Q4 predictions, despite the financial turbulence caused by its failed venture into consumer banking. The company’s net income experienced a 12% year-on-year rise, even as its Platform Solutions unit reported a $1.68 billion loss.
CEO David Solomon expressed his optimism during a company earnings call, stating, “We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026.”
Goldman Sachs’ Q4 Performance in Numbers
At the close of the final quarter of 2025, Goldman Sachs’ earnings per share clocked in at $14.01, substantially surpassing analysts’ consensus estimate of $11.65. The company’s net income, too, reached an impressive $4.62 billion, outdoing estimates of $3.63 billion and marking a 12% increase from Q4 2024.
Despite these positive results, Goldman Sachs’ Q4 revenue of $13.45 billion fell slightly below analyst projections of $13.85 billion, reflecting a 3% decrease from the previous year. The company attributes this dip largely to its Platform Solutions department, which oversees consumer-lending products such as the Apple Card.
Goldman Sachs is in the process of transferring the Apple Card to JPMorganChase, a move Solomon described as a necessary step to “narrow our strategic focus.” The Platform Solutions unit reported a loss of $1.68 billion in Q4, a deficit Goldman Sachs attributes to markdowns and contract termination obligations related to the Apple Card’s transfer.
Strong Performance in Global Banking and Markets Division
Despite the challenges faced in consumer banking, Goldman Sachs’ Global Banking and Markets division reported significant gains. The unit’s Q4 revenue hit $10.41 billion, marking a 22% increase year-over-year. This success was driven by a 25% jump in investment banking fees and a similar rise in revenue from equities.
Goldman Sachs reports that the company maintained its leading position as the number-one advisor in investment banking and the top equities franchise. For the full year, Goldman Sachs reported earnings of $17.2 billion (or $51.32 per share), a 27% increase from the previous year, with revenue amounting to $58.28 billion.
Gerard Cassidy, an analyst at RBC Capital Markets, noted, “Overall, GS posted a strong quarter … beating estimates in investment banking, asset, and wealth management, and markets, partially offset by higher-than-expected operating expenses.”
Challenges with the Apple Card
Goldman Sachs launched the Apple Card in 2019. However, managing the card became a costly endeavor. In 2024, the Consumer Financial Protection Bureau ordered Goldman Sachs to pay a minimum of $19.8 million to card users, along with a $45 million civil money penalty for multiple violations regarding refunds and disputed charges.
Goldman Sachs recently announced the transfer of the Apple Card to JPMorgan. The bank plans to assume the card’s $20 billion of balances over the next two years. JPMorgan has set aside a $2.2 billion provision for potential credit losses from the Apple Card portfolio.
Goldman Sachs, however, predicted that offloading the card would add 46 cents per share to its Q4 earnings. Solomon stated, “This transaction substantially completes the narrowing of our focus in our consumer business. We look forward to continuing to support our customers during the transition to a new issuer as we focus on advancing the strategy we laid out for our core franchises in Global Banking & Markets and Asset & Wealth Management.”
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