Goldman Sachs reported net earnings of $6.63 billion for the second quarter ended June 30, 2026, with revenue coming in at $20.34 billion. The firm beat analyst estimates by a wide margin: earnings per share came in at $20.98, crushing the consensus of $14.47.

The standout number is what Goldman made from equities trading. The bank reported $7.42 billion in trading revenue for the quarter, a record for any single bank in a three-month period. The haul is larger than what Goldman made in all four quarters of 2019 combined.

Trading Fueled the Gains

Market volatility around artificial intelligence and the Middle East created a busy, lucrative trading environment. Clients needed to reposition portfolios fast, and Goldman’s traders were ready. It’s the third straight quarter where Goldman’s equities unit set an all-time record for trading revenue.

Investment banking also had a strong quarter as companies rushed to do deals and raise capital. Merger and acquisition advisory work picked up, helped by the SpaceX IPO and other high-profile equity raises. Fixed income trading, while solid, wasn’t the headline. Equities was.

Return on Equity Tells the Story

Goldman reported an annualized return on average common shareholders’ equity of 23.5%, a number that would have been unthinkable in previous cycles. For context: 15% ROE is considered solid for a major bank. Goldman is well above that range.

The firm’s net revenues climbed compared to the same quarter last year, and costs remained disciplined enough to let earnings run well ahead of revenue. That’s the ideal mix.

What This Means Forward

One strong quarter doesn’t mean smooth sailing ahead. The AI sector is still facing questions about sustainability, and the Middle East situation could escalate or stabilize. But for Q2, Goldman’s results show that when volatility is high and capital is moving, the biggest franchises win the most business.

Other large banks will report earnings this week. Morgan Stanley reports July 15. Watch their numbers for context on whether Goldman’s strength is an outlier or part of a broader trend.

Goldman’s quarterly earnings floor appears higher than it was two years ago. Trading revenue at this scale is now the new normal.