Goldman beats, record advisory fees

Goldman Sachs smashed expectations this quarter, driven by a staggering 72% surge in equities trading and a sharp rebound in investment banking fees. With net revenue at $18.68 billion and EPS at $17.01, all eyes are on whether these results are sustainable—or just a temporary spike from volatile markets. As the firm continues to wind down its consumer bets like the Apple Card, its focus is squarely on scaling high-fee businesses in banking, markets, and asset management. But rising technology investments and automation are a double-edged sword: they boost productivity, but if expense discipline slips, margins could quickly come under pressure.

Here’s the complication: leadership stability is suddenly a live issue. The board has begun discussing CEO succession, with John Waldron in the wings to potentially succeed David Solomon as soon as 2027. While strategy continuity looks likely, the mere hint of a transition risks client hesitation and could shake up top talent—unless the board signals a clear timeline soon. Meanwhile, Goldman is doubling down on active ETFs, snapping up NEOS and Innovator in $2 billion-plus deals, aiming to become a top player in options-based and outcome-driven investments. The catch? Integrating these complex, resource-heavy businesses without hurting margins or cannibalizing existing funds will be a balancing act, especially as regulatory scrutiny builds after a recent vendor data breach touching wealth clients.

Based on reporting and insights from Fortune, Bloomberg, and Morningstar.

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