Quick Take on 2Q26 Earnings: Result: The Flywheel Is Spinning

Research evidence excerpt

Quick Take on 2Q26 Earnings: Result: The Flywheel Is Spinning

Update

July 14, 2026 10:59 PM GMT

Morgan Stanley & Co. LLCMGoldman Sachs Group Inc | North America Manan Gosalia

Equity Analyst

Quick Take on 2Q26 Earnings Manan.Gosalia@morganstanley.comRyan Kenny, CFA +1 212 761-4092

Ryan.Kenny@morganstanley.com +1 212 761-1664

Result: The Flywheel Is Spinning Connell J Schmitz

Research Associate

What’s Changed Connell.Schmitz@morganstanley.com +1 212 761-6252

Goldman Sachs Group Inc (GS.N) From To Goldman Sachs Group Inc (GS.N, GS UN)

Price Target $1,099.00 $1,145.00

Large Cap Banks | United States of America

Stock Rating Equal-weight

Industry View Attractive Reaction to earnings

Price target $1,145.00

Unchanged Meaningful upside Modest revision higher Shr price, close (Jul 14, 2026) $1,140.00

Impact to our thesis Financial results versus consensus Direction of next 12-month Mkt cap, curr (mm) $349,040

consensus EPS 52-Week Range $1,143.57-691.91

Source: Company data, Morgan Stanley Research

Stock outperformed on a trifecta of strong revenue beat (even

vs. higher buyside estimates), earlier than expected comp ratio

leverage and higher CET1. We are Equal-weight on valuation, but

see further upside to street estimates for 2027 as GS executes

on a multi-year revenue opportunity.

Our Key Takeaways:

• Standout Markets quarter: Equities generated record revenues of $7.4B

(+39% y/y), fueled by strong client activity, elevated single-stock volatility

and record equity financing. FICC revenues also reached $4.6B (+14% y/y),

the highest quarter since 2022, driven by robust client demand for risk

management, rates, commodities, mortgages, and financing solutions.

• Client wallet share increasing: A key part of Goldman's strategy is to be a