Goldman surges past estimates, despite Apple Card costs

• Key Insight: Goldman Sachs' fourth-quarter earnings came in well above Wall Street's expectations, even amid the lingering costs of its botched foray into consumer banking.
• Supporting Data: Goldman's net income jumped 12% year over year, even as its Platform Solutions unit posted a $1.68 billion loss.
• Expert Quote: "We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026," CEO David Solomon said in a statement.

UPDATE: This story includes comments that Goldman Sachs CEO David Solomon made on the company's earnings call, as well as analysis from RBC Capital Markets analyst Gerard Cassidy.

Goldman Sachs soared past Wall Street's expectations in the final quarter of 2025, in spite of the drag from its ill-fated consumer-banking unit.

In the three months that ended on Dec. 31, earnings per share of the New York-based financial giant reached $14.01, well above analysts' consensus estimate of $11.65, according to S&P.

Net income for the company was $4.62 billion, far outpacing estimates of $3.63 billion, per S&P, and notching a 12% increase over the fourth quarter of 2024.

"I am incredibly proud of what we have delivered, and I'm confident that we will continue to serve our clients with excellence and drive strong returns for our shareholders," CEO David Solomon said during a call with analysts on Thursday.

Revenue for Goldman, however, was $13.45 billion in the fourth quarter, falling short of analysts' forecasts of $13.85 billion. This marked a 3% drop from the previous year.

Goldman largely attributed this decrease to its Platform Solutions department, which handles its consumer-lending products, including the Apple Card, which the bank is handing off to JPMorganChase.

"Importantly, we're taking the final steps needed to narrow our strategic focus," Solomon said regarding the transfer of the Apple Card.

In the fourth quarter, Platform Solutions recorded a loss of $1.68 billion. Goldman said this was largely due to markdowns and "contract termination obligations" related to the transfer.

But these difficulties were more than offset by gains in Goldman's Global Banking and Markets division, which handles M&A and other institutional banking. In the fourth quarter, the unit's revenue reached $10.41 billion, up 22% year-over-year.

This was partly driven by investment-banking fees, which jumped 25% from the year before, and revenue from equities, which also rose 25%.

"In Global Banking and Markets, we maintained our position as the number-one advisor in investment banking and number-one equities franchise," Solomon said.

For the full year, Goldman earned $17.2 billion, or $51.32 per share, up 27% from a year ago, on revenue of $58.28 billion, up 9% from a year ago.

"Overall, GS posted a strong quarter … beating estimates in investment banking, asset and wealth management, and markets, partially offset by higher-than-expected operating expenses," Gerard Cassidy, an analyst at RBC Capital Markets, wrote in a research note.

Goldman launched the Apple Card in 2019, but managing it soon became a costly headache. In October 2024, the Consumer Financial Protection Bureau ordered Goldman to pay at least $19.8 million to the card's users, along with a $45 million civil money penalty, over multiple violations regarding refunds and disputed charges.

One week ago, Goldman announced that it was transferring the card to JPMorgan. The nation's largest bank plans to take over the card's $20 billion of balances over the next two years.

On Jan. 7, JPMorgan said it was setting aside a $2.2 billion provision specifically for possible credit losses from the Apple Card portfolio. Goldman, meanwhile, predicted — correctly, according to Thursday's earnings release — that offloading the card would add 46 cents per share to its fourth quarter earnings.

"This transaction substantially completes the narrowing of our focus in our consumer business," Solomon said in a statement on Jan. 7. "We look forward to continuing to support our customers during the transition to a new issuer as we focus on advancing the strategy we laid out for our core franchises in Global Banking & Markets and Asset & Wealth Management."