Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $270.62B
• Dividend Yield: 1.55%
• Average Volume (3M): 2.37M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.39
• Revenue Growth: 2.31%
• EPS Growth: 44.49%
• Country: US
• Employees: 46,600
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 14.01
• Shares Outstanding: 299,928,500
• 10 Day Avg. Volume: 2,218,394
• 30 Day Avg. Volume: 2,366,475
• PEG Ratio: 0.61
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 2.20
• P/FCF Ratio: -5.82
• Enterprise Value/Market Cap: 2.71
• Enterprise Value/Revenue: 5.77
• Enterprise Value/Gross Profit: 12.80
• Enterprise Value/Ebitda: 31.35
• 1Y Price Target: $975.00
• Price Target Upside: 5.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 58.37
• Revenue Forecast (FY): $63.83B

• Rating: 66 Neutral
• Price Target: $995.00 ▲(7.99% Upside)
• Action: Downgraded Date: 02/26/26
• Date: Action: Downgraded 02/26/26

The score is driven mainly by solid profitability/return metrics and a constructive earnings outlook with strong capital returns, offset by the most significant risk: sustained, deeply negative operating and free cash flow and high leverage. Technical signals are neutral-to-mixed, and valuation is moderate with a modest dividend yield.

Positive Factors

GBM Leadership

Goldman’s dominant Global Banking & Markets franchise—record $41.5B revenues and a 23‑year #1 M&A ranking—reflects deep client relationships, market share and execution capability. This durable leadership drives recurring fee income and competitive advantages in advisory and trading across cycles.

Scale in Asset & Wealth Management

A large fee‑based AWM business ($3.6T AUS, $16.7B revenues) with high pretax margins and a 30% target creates durable, less cyclical revenue. Growth in alternatives fundraising and fee‑paying AUM supports predictable fees, margin expansion and reduces reliance on volatile market‑making income over the medium term.

Capital & Risk De‑risking

Significant reduction in principal investments and a stronger stress capital buffer materially lowers balance‑sheet risk and capital intensity. Combined with robust CET1 and buyback capacity, this improves capital allocation optionality and resilience to shocks while supporting continued shareholder returns.

Negative Factors

Weak Cash Conversion

Sustained negative operating and free cash flows over 2023–2025 indicate weak cash conversion despite accounting profits. Persistent cash outflows constrain organic funding for investments and shareholder returns, increase reliance on external financing or asset sales, and reduce balance‑sheet flexibility in stress periods.

High Leverage

A structurally high leverage profile (debt/equity ~5x) typical of capital markets firms amplifies downside in downturns, raises funding and liquidity sensitivity, and limits strategic flexibility. Higher leverage also intensifies regulatory and stress‑test implications, constraining capital deployment during volatile markets.

Cyclicality of Fee Pools

Significant dependence on market‑driven advisory, ECM and trading revenues leaves earnings vulnerable to macro and market cycles. With ECM/IPOs still depressed versus 2021 peaks, fee pools may stay constrained, limiting sustainable upside even as IB backlog and GBM share gains provide partial offset.

Goldman Sachs Group Business Overview & Revenue Model

Company Description

The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The company's Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and middle-market lending, relationship lending, and acquisition financing, as well as transaction banking services. This segment also offers underwriting services, such as equity underwriting for common and preferred stock and convertible and exchangeable securities; and debt underwriting for various types of debt instruments, including investment-grade and high-yield debt, bank and bridge loans, and emerging-and growth-market debt, as well as originates structured securities. Its Global Markets segment is involved in client execution activities for cash and derivative instruments; credit and interest rate products; and provision of equity intermediation and equity financing, clearing, settlement, and custody services, as well as mortgages, currencies, commodities, and equities related products. The company's Asset Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, as well as invests in corporate, real estate, and infrastructure entities. Its Consumer & Wealth Management segment offers wealth advisory and banking services, including financial planning, investment management, deposit taking, and lending; private banking; and unsecured loans, as well as accepts saving and time deposits. The company was founded in 1869 and is headquartered in New York, New York.

How the Company Makes Money

Goldman Sachs generates revenue through several key streams. The Investment Banking segment contributes significantly by advising clients on mergers and acquisitions, underwriting public offerings, and facilitating capital raising efforts. The Global Markets segment earns revenue through trading and market-making activities in equities, fixed income, and commodities, capitalizing on price fluctuations and liquidity needs. Asset Management services generate fees from managing investments on behalf of institutional and individual clients, while Consumer & Wealth Management offers financial planning and investment services that also produce advisory and management fees. Additionally, Goldman Sachs has formed strategic partnerships and alliances that enhance its service offerings and broaden its client base, contributing to its overall earnings. The firm's diversified approach across different sectors helps mitigate risks and stabilize revenue streams.

Goldman Sachs Group Financial Statement Overview

Summary

Profitability rebounded strongly (2025 net income $17.2B; margin ~13.7%) and equity/ROE improved, but the quality of earnings is pressured by materially negative operating and free cash flow in 2023–2025 (2025 OCF -$45.2B; FCF -$47.2B) and structurally high leverage typical of the model (debt-to-equity ~5x).

Income Statement

Revenue has been relatively stable at a high base (2025: $125.1B vs 2024: $126.9B), but growth swung meaningfully year-to-year, including a decline in 2025. Profitability improved from 2023 to 2025 (net income rising from $8.5B to $17.2B), with net margin recovering to ~13.7% in 2025 from ~7.9% in 2023, though still well below the unusually strong 2021 level. Overall, earnings power looks solid but more cyclical/volatile than a steady compounder.

Balance Sheet

The balance sheet is very large ($1.81T assets in 2025) with high leverage typical of capital markets firms, with debt-to-equity around ~5.0x in 2023–2025 (2025: 4.95x). Equity has grown (2025: $125B vs 2023: ~$116.9B), supporting capacity and resilience, and return on equity improved to ~13.7% in 2025 from ~7.3% in 2023. The key weakness is the consistently high leverage, which can amplify downside in weaker market environments.

Cash Flow

Cash generation has been the main pressure point: operating cash flow was negative in 2023–2025 (2025: -$45.2B; 2024: -$13.2B), and free cash flow was also deeply negative over the same period (2025: -$47.2B). This represents a sharp deterioration versus 2021–2022, when operating cash flow and free cash flow were positive. While cash flow can be volatile for this business model, the recent run of large outflows is a notable red flag for near-term cash conversion and balance-sheet flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	127.21B	125.10B	126.85B	108.42B	68.71B	64.99B
Gross Profit	57.34B	57.17B	52.16B	45.23B	44.65B	58.98B
EBITDA	23.41B	21.81B	20.79B	15.60B	15.94B	29.06B
Net Income	16.67B	17.18B	14.28B	8.52B	11.26B	21.64B
Balance Sheet
Total Assets	1.81T	1.81T	1.68T	1.64T	1.44T	1.46T
Cash, Cash Equivalents and Short-Term Investments	516.00B	498.00B	921.83B	924.95B	721.95B	778.72B
Total Debt	665.00B	619.00B	616.93B	583.13B	434.55B	487.76B
Total Liabilities	1.68T	1.69T	1.55T	1.52T	1.32T	1.35T
Stockholders Equity	124.00B	125.00B	122.00B	116.91B	117.19B	109.93B
Cash Flow
Free Cash Flow	15.77B	-47.22B	-15.30B	-14.90B	4.96B	1.63B
Operating Cash Flow	17.89B	-45.15B	-13.21B	-12.59B	8.71B	6.30B
Investing Cash Flow	-46.31B	-44.23B	-49.62B	-17.31B	-75.96B	-30.46B
Financing Cash Flow	41.53B	66.10B	7.32B	27.80B	59.60B	134.74B

Goldman Sachs Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 921.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GS, the sentiment is Positive. The current price of 921.38 is below the 20-day moving average (MA) of 924.08, below the 50-day MA of 921.55, and above the 200-day MA of 775.39, indicating a neutral trend. The MACD of -3.09 indicates Positive momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 36.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GS.

Goldman Sachs Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RJF	71 Outperform	$30.64B	15.22	17.11%	1.26%	6.45%	5.85%
SCHW	70 Outperform	$165.47B	20.03	18.11%	1.07%	5.90%	66.60%
MS	69 Neutral	$268.01B	16.54	15.60%	2.14%	7.22%	48.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JPM	67 Neutral	$801.83B	14.85	16.06%	1.79%	1.89%	12.32%
GS	66 Neutral	$270.62B	17.58	13.91%	1.55%	2.31%	44.49%
BAC	66 Neutral	$363.58B	13.23	10.23%	1.93%	0.15%	33.84%

Goldman Sachs Group Corporate Events

Goldman Sachs Announces Forthcoming Retirement of Chief Legal Officer

The Goldman Sachs Group, Inc. announced that Kathryn H. Ruemmler has decided to retire from her positions as Chief Legal Officer and General Counsel, effective June 30, 2026. Her planned departure signals an upcoming leadership transition in the firm’s top legal roles, a change that may affect continuity in legal strategy, regulatory engagement, and governance oversight across the global franchise.

The long lead time before Ruemmler’s retirement gives Goldman Sachs an extended period to manage succession planning and ensure a smooth handover of responsibilities. This structured transition is likely intended to minimize disruption to the firm’s legal and compliance operations, which are core to navigating complex regulatory environments in key markets worldwide.

The most recent analyst rating on (GS) stock is a Hold with a $990.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.

Goldman Sachs boosts CEO pay after strong 2025 performance

For the year ended December 31, 2025, Goldman Sachs Group’s board set Chairman and CEO David Solomon’s total 2025 compensation at $47 million, up from $39 million in 2024, with an unchanged $2 million base salary and the majority of pay delivered via performance stock units and carry tied to long-term firmwide and strategic growth performance. The Compensation Committee cited strong 2025 results – including $58.28 billion in net revenues, $17.18 billion in net earnings, a 27% rise in diluted EPS to $51.32, a 15.0% ROE, a 57% total shareholder return, higher dividends, and nearly $17 billion returned to shareholders – as well as progress on strategic priorities, risk management, culture, and talent retention, reinforcing the firm’s pay-for-performance model and its competitive positioning against both traditional banks and alternative asset managers.

The most recent analyst rating on (GS) stock is a Hold with a $1030.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.

Goldman Sachs Posts Strong 2025 Results, Raises Dividend

On January 15, 2026, Goldman Sachs reported strong results for the year ended December 31, 2025, with net revenues rising 9% year-on-year to $58.28 billion and net earnings reaching $17.18 billion, translating into diluted EPS of $51.32 versus $40.54 in 2024. Fourth-quarter 2025 net revenues were $13.45 billion and net earnings $4.62 billion, with quarterly EPS of $14.01, reflecting continued momentum in core operations despite a drag from its Platform Solutions business tied to markdowns on the Apple Card loan portfolio and related contract termination obligations; the firm also announced an increase in its quarterly dividend to $4.50 per share starting in the first quarter of 2026. Return on average common shareholders’ equity improved to 15.0% for 2025, with an annualized 16.0% ROE in the fourth quarter, and book value per share grew 6.2% over the year to $357.60, underscoring stronger profitability and capital accretion, driven largely by a robust performance in Global Banking & Markets, where full-year net revenues rose 18% to $41.45 billion on significantly higher advisory, underwriting, FICC, and equities revenues, and a notably larger investment banking fee backlog that signals sustained deal-making activity ahead.

The most recent analyst rating on (GS) stock is a Buy with a $1048.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.

Goldman Sachs Unveils Reorganized Segment Reporting Structure

Beginning in the fourth quarter of 2025, Goldman Sachs reorganized its reporting structure across three existing business segments—Global Banking & Markets, Asset & Wealth Management and Platform Solutions—without changing its historical consolidated financial results. The firm shifted its transaction banking business into Global Banking & Markets, reclassified certain institutional loan facilitation and structured letters of credit into FICC financing, and began allocating Urban Investment Group results across all three segments to reflect the shared nature of Community Reinvestment Act obligations. Within Asset & Wealth Management, equity and debt investments are now reported together as Goldman continues to pivot from balance-sheet investing toward a scaled, third-party funds-driven model, while Platform Solutions is refocused chiefly on Apple Card and exited businesses. The recast segment data from 2021 through 2025 provide investors with a clearer view of profitability and capital deployment by line of business, underscoring a strategic shift away from broad consumer ambitions toward core institutional, wealth and fee-based asset management franchises.

The most recent analyst rating on (GS) stock is a Hold with a $604.00 price target. To see the full list of analyst forecasts on Goldman Sachs Group stock, see the GS Stock Forecast page.