Goldman Sachs has delivered the strongest equity trading quarter in Wall Street history, posting $4.3 billion in stock-trading revenue in the second quarter of 2025. The figure came in $600 million above analyst expectations and $100 million ahead of the bank’s own record set just three months earlier.

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The result was fuelled by heightened market volatility tied to ongoing trade tensions under the Trump administration. The tariff-driven upheaval created fertile ground for trading desks across Wall Street, but Goldman stood out as the only major bank to grow equity revenues quarter-on-quarter. By contrast, Morgan Stanley, Bank of America and JPMorgan Chase all saw declines in their stock-trading divisions.

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Goldman’s equities revenue was driven largely by intermediation, which rose 45% from the same period last year, and by a 23% rise in equities financing. The bank said its traders capitalised on sharp swings in investor sentiment and short-term dislocations as markets reacted to shifting US policy positions.

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The performance gave Goldman a clean beat on profits for the quarter. Fixed income revenues came in at $3.47 billion, also above expectations, helped by record results in FICC financing. Meanwhile, investment banking fees hit $2.19 billion, lifted by a 71% increase in financial advisory revenues as dealmaking picked up. Equity underwriting was flat, and debt underwriting dipped slightly, weighed down by a softer quarter in leveraged finance.

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Asset and wealth management – a key strategic focus for the firm – posted an 11% increase in management fees year-on-year. Still, net revenue in that segment edged down to $3.78 billion.

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The second-quarter surge follows a string of aggressive moves by Goldman to reclaim ground in its trading business. Competition has intensified in recent years, not only from other banks but also from specialist market makers such as Jane Street and Citadel Securities. Goldman has responded by doubling down on core trading operations and sharpening its pricing and execution capabilities.

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CEO David Solomon said the bank was benefiting from a more active trading environment but warned that conditions remained unpredictable.

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Despite the strong quarter, Goldman Sachs shares slipped 1% in early trading on Wednesday. The stock is still up 22% year-to-date. Earlier this month, the bank lifted its dividend by 33% to $4 after comfortably passing the Federal Reserve’s annual stress tests. Regulators had softened several requirements, making it easier for banks to return capital to shareholders.

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