Goldman Sachs Prepares to Reveal First-Quarter Results – What Wall Street Is Expecting
Goldman Sachs is about to report its first-quarter earnings this Monday, and all eyes are on the investment giant as it unveils its performance for the first few months of 2025. Analysts are eager to see if Goldman Sachs can surprise the market or if it will follow in the footsteps of some of its rivals, who’ve been benefiting from volatile trading conditions.
Wall Street analysts expect the bank to post earnings of $12.35 per share, with total revenue reaching $14.81 billion. But what’s really catching attention is the bank’s performance in key areas like trading revenue, investment banking, and its wealth management division, which could hold the key to whether Goldman Sachs ends up exceeding or falling short of expectations.
What Are Analysts Expecting?
Here’s a quick breakdown of what the experts predict Goldman Sachs will report for Q1 2025:
- Earnings per Share (EPS): $12.35 (according to LSEG)
- Revenue: $14.81 billion (according to LSEG)
- Trading Revenue:
- Fixed Income: $4.56 billion
- Equities: $3.65 billion
- Investment Banking Revenue: $1.94 billion
Analysts will have a call with the bank’s leadership at 9:30 a.m. ET to discuss these results and any forward-looking guidance. Given the market volatility seen in recent months, these figures will be under heavy scrutiny.
Will Goldman Sachs Benefit from Market Volatility?
Despite a challenging start to 2025, Goldman Sachs may find itself benefiting from the same market conditions that helped its rivals JPMorgan Chase and Morgan Stanley crush expectations in their own first-quarter results.
Both JPMorgan and Morgan Stanley reported massive surges in equities trading revenue—with increases of 48% and 45%, respectively—driven by market volatility in the early months of President Trump’s trade negotiations. Goldman Sachs may be poised to see similar gains in its own trading division, particularly in equities, given the uncertain market conditions triggered by the U.S.-China trade war.
The Impact of Volatile Markets on Wealth Management
In addition to the volatility-driven trading revenue, Goldman Sachs is expected to see strong support for its wealth and asset management division. CEO David Solomon has repeatedly called the wealth management business the “growth engine” of the bank, and buoyant markets in the first quarter could have led to significant gains in this area.
But Is the Trade War a Threat to Goldman Sachs?
While Goldman Sachs is set to benefit from volatility in the markets, there are also some headwinds to consider. Since the escalation of President Trump’s trade tensions last week, market uncertainty has increased, which could affect the bank’s performance in the second quarter and beyond. If the U.S. trade policies continue to wreak havoc on global markets, it could further dampen investor sentiment.
Moreover, Goldman Sachs has faced challenges in 2025, with its stock price down 14% for the year through last Friday. This dip raises questions about whether the bank can truly capitalize on the market turmoil or if it will continue to struggle amidst broader economic uncertainties.
What Does This Mean for Goldman Sachs Shareholders?
For investors and shareholders, the upcoming earnings report is crucial. If Goldman Sachs can outperform expectations despite market instability, it could signal that the bank is well-positioned to weather ongoing economic challenges. However, if the bank falls short of forecasts, it could result in further declines in the stock, especially considering its 14% drop this year.
A Crossroads for Goldman Sachs in 2025
Goldman Sachs finds itself at a crossroads. With booming equities trading and a potentially strong performance in wealth management, the bank could see a profitable first quarter. However, the escalating trade tensions and political uncertainty could prove to be major obstacles in the coming months.
As investors hold their breath, the Q1 earnings report will shed light on whether Goldman Sachs can continue to thrive or if it will struggle to regain its footing in this turbulent economic landscape.
