Goldman Sachs (NYSE:GS) Surprises With Q1 CY2026 Sales

Global investment bank Goldman Sachs (NYSE:GS) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 14.4% year on year to $17.23 billion. Its GAAP profit of $17.55 per share was 7.1% above analysts’ consensus estimates.

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Company Overview

Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Goldman Sachs’s revenue grew at a sluggish 2.5% compounded annual growth rate over the last five years. This wasn’t a great result, but there are still things to like about Goldman Sachs.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Goldman Sachs’s annualized revenue growth of 11.9% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Goldman Sachs reported year-on-year revenue growth of 14.4%, and its $17.23 billion of revenue exceeded Wall Street’s estimates by 1%.

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Tangible Book Value Per Share (TBVPS)

Financial firms profit by providing a wide range of services, making them fundamentally balance sheet-driven enterprises with multiple intermediation roles. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these multifaceted institutions.

This is why we consider tangible book value per share (TBVPS) an important metric for the sector. TBVPS represents the real net worth per share across all business segments, providing a clear measure of shareholder equity regardless of the complexity of operations. On the other hand, EPS is often distorted by the diverse nature of operations, mergers, and various accounting treatments across different business units. Book value provides clearer performance insights.

Goldman Sachs’s TBVPS grew at a decent 9% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 10.5% annually over the last two years from $295.96 to $361.19 per share.

Tangible Book Value Per Share (TBVPS)

Financial institutions manage complex balance sheets spanning various financial activities. Valuations reflect this complexity, emphasizing balance sheet quality and long-term book value compounding across multiple revenue streams.

This explains why tangible book value per share (TBVPS) is a premier metric for the sector. TBVPS provides concrete per-share net worth that investors can trust when evaluating companies with complex, multi-faceted business models. Traditional metrics like EPS are helpful but face distortion from the complexity of diversified operations, M&A activity, and various accounting rules that can obscure true performance across multiple business lines.

Goldman Sachs’s TBVPS grew at a decent 9% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 10.5% annually over the last two years from $295.96 to $361.19 per share.

Key Takeaways from Goldman Sachs’s Q1 Results

It was good to see Goldman Sachs beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, trading in its fixed income, currencies, and commodities segment missed expectations. Investors were likely hoping for more, and shares traded down 3.6% to $874.88 immediately after reporting.

Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).