Goldman Sachs reported strong first-quarter results, the best in five years, with quarterly profit rising 18% to $5.4 billion (€4.6bn), as the bank highlighted increased volatility due to geopolitical tensions.
Goldman Sachs released its figures for the first quarter of 2026 on Monday with revenues rising 14% to $17.2 billion (€14.6bn) and quarterly profit up 18% to $5.4 billion (€4.6bn), marking the best quarter in five years.
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The New York-based investment bank pointed to an increase in completed mergers and acquisitions as a key factor behind the performance.
This is the third successive quarter in which Goldman Sachs has flagged completed deals as a positive contributor to results.
CEO David Solomon stated in the accompanying materials that “Goldman Sachs delivered a very strong performance for our shareholders this quarter, even as market conditions became more volatile”.
“The geopolitical landscape remains very complex, so disciplined risk management must remain core to how we operate,” Solomon added.
Mergers offset mixed trading performance and share dips
Investment banking fees jumped 48% in the first quarter of the year, reflecting a significant increase in completed mergers and acquisitions volumes.
Goldman Sachs noted higher operating expenses during the period, partly because of elevated transaction-based costs tied to the deal activity.
On the other hand, trading revenues presented a more varied picture.
Revenue from fixed income, currency and commodities declined due to weakness in interest rate products and some other categories. Nonetheless, equities trading rose over the same period.
Since US and Israeli forces attacked Iran on 28 February, the resulting surge in oil prices has influenced trading dynamics across equities and other assets.
Heightened volatility has generally supported trading income at banks such as Goldman Sachs, even if the effect differed by division.
Despite the solid earnings, Goldman Sachs shares fell over 4.5% in pre-market trading on Monday.
Investors appeared to focus on the mixed trading outcome and the bank’s forward-looking caution about global complexity.
The financial results nevertheless demonstrate resilience in core advisory operations at a time when disciplined risk management is viewed as essential amid unpredictable international conditions.
