David Solomon Says Markets 'Responding Positively' To Evolving Policies As Goldman Sachs' Q2 Earnings Blow Past Street Expectations

Goldman Sachs Group Inc. (GS) CEO David Solomon stated on Wednesday that the markets and investors are “responding positively” to the evolving policy environment under the current administration, following the lender’s second-quarter (Q2) performance that exceeded Wall Street expectations.

Goldman Sachs’ shares were nearly 1% higher in Wednesday’s pre-market trading session. Retail sentiment on Stocktwits around the GS stock was in the ‘extremely bullish’ territory at the time of writing.

President Donald Trump’s tariff policies may have contributed to an increase in economic uncertainty, prompting companies like ASML Holding NV (ASML) to revise their full-year forecast. However, Solomon believes the sentiment in the markets is one of optimism.

He said Goldman Sachs’ strong quarter was a reflection of healthy client activity levels across the lender’s businesses.

“At this time, the economy and markets are generally responding positively to the evolving policy environment,” he said, but also noted that the firm remains “very focused” on risk management.

“Given the strategic decisions and investments we’ve made, we continue to believe that the firm is well-positioned to perform for our shareholders,” he added.

Like its peers, JPMorgan and Citigroup, Goldman Sachs also benefited from a surge in dealmaking and trading revenue.

The firm reported earnings per share (EPS) of $10.91, compared to an expected $9.69, according to Stocktwits data, and rising from $8.62 during the year-ago quarter.

Its revenue for the quarter stood at $14.58 billion, beating Wall Street expectations of $13.58 billion and growing from $12.73 billion in the year-ago period.

The Global Banking & Markets segment alone contributed $10.12 billion in Q2, growing 24% year-on-year (YoY). Investment banking fees surged 26% YoY to $2.19 billion.

Net interest income in Q2 stood at $3.1 billion, rising from $1.99 billion during the year-ago quarter.

Goldman Sachs’ stock has surged 23% year-to-date and 40% over the past 12 months.

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