Portfolio: Zacks Focus List

Goldman Sachs operates the world’s preeminent investment banking franchise, generating diversified revenue across Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. The firm posted $58.3 billion in 2025 net revenue, up 9% year-over-year, with EPS growing 27% to $51.32, demonstrating strong operating leverage. Q2 2026 results showed further acceleration, with EPS of $20.98 and ROE of 18.6%—up sharply from 13% just a year earlier—reflecting improved capital efficiency and profitability across trading, advisory, and underwriting activities amid resurgent M&A and capital markets activity.

The firm’s Asset & Wealth Management division, overseeing more than $3 trillion in assets under supervision, provides a durable, fee-based revenue stream that diversifies away from cyclical trading and banking income. Goldman’s market-making franchise, spanning equities, fixed income, currencies, and commodities, benefits from elevated volatility and deal flow, while its ultra-high-net-worth wealth management business leverages the firm’s global network for high-margin, sticky client relationships. With rising ROE, expanding fee-based assets, and improving capital markets conditions supporting deal activity, Goldman’s fundamentals point toward continued earnings power and balance-sheet strength heading into the next 12 months.