Goldman Sachs (NYSE:GS) is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to a substantial and diversified client base, including corporations, financial institutions, governments, and individuals. As a major player in the financial industry, Goldman Sachs competes with other giants like JPMorgan Chase and Morgan Stanley.
On July 16, 2025, Goldman Sachs is set to release its quarterly earnings. Wall Street estimates the earnings per share (EPS) to be $9.37, while the revenue is projected to be approximately $13.53 billion. However, analysts anticipate the company to report a slightly higher EPS of $9.43, marking a 9.4% increase from the same period last year. The projected revenue of $13.5 billion represents a 6.1% year-over-year growth.
Goldman Sachs's investment banking revenues are likely to have been bolstered by strong mergers and acquisitions activity. Additionally, the firm's net interest income for the quarter is projected to increase by 28.3%, driven by robust loan demand and stable interest rates. Despite a recent 0.1% decline in share price, the company plans to increase its common stock dividend from $3.00 to $4.00 per share starting July 1.
In the first quarter of 2025, Goldman Sachs experienced significant growth in its Global Banking & Markets division. However, there were concerns due to a decline in the investment banking sector and rising expenses. Despite these challenges, Goldman Sachs has a strong track record of exceeding earnings expectations, having surpassed the Zacks Consensus Estimate in the last four quarters with an average earnings surprise of 20.74%.
Goldman Sachs's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 15.38, indicating the market's valuation of its earnings. The price-to-sales ratio stands at about 1.73, suggesting how much investors are willing to pay per dollar of sales. However, the enterprise value to operating cash flow ratio is negative at -29.51, which may indicate challenges in cash flow generation relative to its valuation.
