Goldman Sachs Group (GS) AI Stock Analysis

• Market Cap: $280.98B
• Dividend Yield: 1.55%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.37
• 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: 2,440,300
• 30 Day Avg. Volume: 2,049,913
• PEG Ratio: 0.17
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.48
• P/FCF Ratio: -12.28
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 5.80
• Enterprise Value/Gross Profit: 12.87
• Enterprise Value/Ebitda: 31.54
• 1Y Price Target: $947.60
• Price Target Upside: 0.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $1,088.00 ▲(15.73% Upside)

The score is driven by strong operating momentum and a positive earnings-call outlook with significant capital return capacity, reinforced by a bullish technical trend. Offsetting factors are elevated leverage and weak recent cash-flow conversion, while valuation and dividend support are moderate.

Positive Factors

GBM market leadership

Goldman’s Global Banking & Markets scale and sustained advisory leadership create durable fee engines. A multi-year wallet-share gain and the largest IB backlog in four years support recurring advisory and underwriting fees, reinforcing competitive positioning through market cycles.

AWM scale & fee base

Large Asset & Wealth Management scale and growing alternatives fundraising provide a structural shift to fee-based, lower-capital businesses. Targets to raise pretax margins and steady fee inflows (5% long-term) imply more stable, high‑margin recurring revenue and lower balance-sheet intensity.

Capital & funding strength

A healthy CET1 buffer, diverse deposit funding (~$501B) and material buyback capacity afford strategic flexibility. Strong capital generation lets Goldman return capital while supporting lending and market-making, enhancing resilience to stress and enabling opportunistic deployment over time.

Negative Factors

High balance-sheet leverage

A very high leverage profile and low equity base increase sensitivity to asset shocks and raise funding and regulatory risks. While ROE is strong, limited equity buffers can amplify losses in downturns and constrain capital flexibility for investments or larger buybacks over multiple cycles.

Weak cash-flow conversion

Significant deterioration in free cash flow and negative operating cash flow conversion indicate earnings are not fully translating to sustainable cash. This undermines the durability of shareholder distributions and internal reinvestment unless cash conversion improves or non‑recurring items normalize.

Apple Card transition reduces platform revenue

Exiting or modifying the Apple Card platform is a structural revenue reduction for platform solutions. Even with one‑time reserve benefits, the lower recurring loan and servicing revenue base raises efficiency ratio volatility and forces redeployment of capital to replace lost, higher-margin platform income.

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

Strong income-statement momentum (TTM revenue up 49.8%, healthy profitability with ~12.6% net margin and solid EBIT/EBITDA margins) is partly offset by balance-sheet leverage risk (debt-to-equity 5.36, low equity ratio 6.86%) and weaker cash conversion (TTM free cash flow down 163.38% and negative operating cash flow to net income).

Income Statement

Goldman Sachs has demonstrated strong revenue growth with a TTM increase of 49.8%, indicating robust business expansion. The gross profit margin is healthy at 43.32%, and the net profit margin has improved to 12.60%, reflecting enhanced profitability. EBIT and EBITDA margins are also strong at 16.06% and 17.69%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio of 5.36, which suggests significant leverage. However, the return on equity is solid at 13.49%, indicating effective use of equity to generate profits. The equity ratio stands at 6.86%, highlighting a relatively low equity base compared to total assets, which could pose a risk in volatile markets.

Cash Flow

Goldman Sachs has shown a decline in free cash flow growth, with a significant drop of 163.38% in the TTM period. The operating cash flow to net income ratio is negative, indicating challenges in converting income to cash flow. However, the free cash flow to net income ratio is positive at 1.09, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.21B	126.85B	108.42B	68.71B	64.99B	53.50B
Gross Profit	57.34B	52.16B	45.23B	44.65B	58.98B	41.46B
EBITDA	23.41B	20.79B	15.60B	15.94B	29.06B	14.38B
Net Income	16.67B	14.28B	8.52B	11.26B	21.64B	9.46B
Balance Sheet
Total Assets	1.81T	1.68T	1.64T	1.44T	1.46T	1.16T
Cash, Cash Equivalents and Short-Term Investments	516.00B	921.83B	924.95B	721.95B	778.72B	588.48B
Total Debt	665.00B	616.93B	583.13B	434.55B	487.76B	420.96B
Total Liabilities	1.68T	1.55T	1.52T	1.32T	1.35T	1.07T
Stockholders Equity	124.00B	122.00B	116.91B	117.19B	109.93B	95.93B
Cash Flow
Free Cash Flow	15.77B	-15.30B	-14.90B	4.96B	1.63B	-24.84B
Operating Cash Flow	17.89B	-13.21B	-12.59B	8.71B	6.30B	-18.54B
Investing Cash Flow	-46.31B	-49.62B	-17.31B	-75.96B	-30.46B	-34.36B
Financing Cash Flow	41.53B	7.32B	27.80B	59.60B	134.74B	70.38B

Goldman Sachs Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 940.12
• 50DMA: Positive
• 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 940.12 is above the 20-day moving average (MA) of 938.94, above the 50-day MA of 885.06, and above the 200-day MA of 739.89, indicating a bullish trend. The MACD of 13.66 indicates Positive momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 27.35 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
GS	78 Outperform	$280.98B	18.25	13.91%	1.55%	2.31%	44.49%
RJF	78 Outperform	$33.24B	16.38	17.16%	1.26%	6.45%	5.85%
SCHW	77 Outperform	$183.86B	22.25	18.11%	1.07%	5.90%	66.60%
MS	76 Outperform	$289.79B	17.86	16.34%	2.14%	7.22%	48.18%
JPM	69 Neutral	$818.77B	15.02	16.06%	1.79%	1.89%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BAC	65 Neutral	$378.34B	13.60	10.23%	1.93%	0.15%	33.84%

Goldman Sachs Group Corporate Events

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.