Goldman Sachs shares fall 5% despite 19% YoY earnings growth amid Wall Street gloom

Shares of Goldman Sachs Group Inc fell nearly 5% to hit a low of $865.34 on the NYSE amid lackluster trade on Wall Street as frontline indices fell after Iran-US negotiations in Pakistan did not yield desired results. The stock fell despite the company reporting decent Q1 earnings on Monday.

The company reported a net revenue of $17.23 billion in the January-March quarter, recording a 14% year-on-year growth compared to $15.06 billion in the year ago period. The net revenue shot up 28% sequentially versus $13.45 billion in Q4CY25.

The company’s net earnings in the reported quarter stood at $5.63 billion, up 19% YoY versus $4.74 billion in Q1CY25. The profit surged 22% quarter-n-quarter versus $4.62 posted by the company in the quarter ended December 31, 2025.

Commenting on the company’s results, David Solomon, Chairman and CEO of Goldman Sachs, said, “Goldman Sachs delivered very strong performance for our shareholders this quarter, even as market conditions became more volatile. Our clients continue to depend on us for high quality execution and insights amid the broader uncertainty, and we remain confident in how we’ve positioned our businesses. The geopolitical landscape remains very complex – so disciplined risk management must remain core to how we operate.”

Global markets have been roiled by the Iran war as rising crude oil prices fan inflation fears and exacerbate worries about a recession.

Goldman’s revenue from equity trading intermediation and financing rose 27% to a record $5.33 billion, while that from fixed income, currencies and commodities fell 10% to $4.01 billion.

Profit applicable to common shareholders jumped to $5.4 billion, or $17.55 per share, compared with $4.58 billion, or $14.12 per share, a year earlier.Global M&A volumes hit $1.38 trillion in the first quarter, according to data compiled by Dealogic. Analysts at ⁠Jefferies noted that ‌global M&A proxy fees rose 19% year-over-year to $11.3 billion, with Goldman leading the pack in market share.

The investment bank worked on some large deals in the first quarter, including advising Unilever on the planned merger of its ⁠food business with McCormick to create a $65 billion company, and Equitable’s proposed tie-up with Corebridge to form a $22 billion insurer.

Its fees from investment banking rose to $2.84 billion in the first quarter, a 48% jump from a year ago.

Shares of the Wall Street giant have risen over 3% so far this year, after a more than 53% jump in 2025.

(With inputs from agencies)

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