Goldman Sachs, a holding within the value component of the US Growth portfolio, has delivered a robust first-quarter result for 2025, reinforcing its position as one of the world’s leading investment banks. The company reported revenue of USD 15.06 billion, up 6% from the same period last year, and comfortably ahead of analyst expectations of USD 14.76 billion. This result marks the third-highest quarterly revenue on record for the firm and was driven largely by strong trading performance. In reaction, shares rose 1.93%, outpacing a 0.79% gain for the S&P500.

Equities trading was the standout, with revenue jumping 27% to USD 4.19 billion—Goldman’s highest ever in this division—benefiting from heightened market volatility sparked by global trade tensions. Fixed income, currency, and commodities (FICC) trading also delivered a solid USD 4.40 billion, just shy of expectations. Together, these trading units underpinned the 10% rise in Global Banking & Markets revenue to USD 10.71 billion.

In contrast, investment banking continued to feel the weight of economic uncertainty. Advisory revenue fell 22% year-on-year to USD 792 million, and overall investment banking income dropped 8% to USD 1.92 billion, missing forecasts. Still, the bank noted a growing pipeline of deals, suggesting improved conditions later this year.

Goldman’s earnings per share came in at USD 14.12, up from USD 11.58 last year, and well above consensus estimates. Its return on equity rose to 16.9%, indicating strong profitability and efficient use of capital. Book value per share climbed to USD 344.20, while net interest income and loan growth also exceeded expectations. Deposits rose nearly 9% quarter-on-quarter to USD 471 billion, further strengthening the balance sheet.

Perhaps the biggest headline for shareholders was the announcement of a massive share buyback program of up to USD 40 billion—equivalent to roughly 25% of Goldman’s market value. This follows USD 4.4 billion in buybacks during the quarter, more than double what analysts anticipated, and sends a clear signal of management’s confidence in the bank’s future.

CEO David Solomon acknowledged the more cautious outlook amid rising tariffs and policy uncertainty but reiterated the bank’s ability to support clients and adapt to a shifting landscape. Cost control remains a focus, with further efficiency measures expected in the coming quarter.

With volatility expected to persist, Goldman’s strength in trading, improved capital efficiency, and shareholder-friendly initiatives suggest the bank is well positioned to navigate the months ahead.