Goldman Sachs delivered a robust fourth quarter, generating net revenues of 13.45 billion driven by record equities trading revenues of 4.31 billion and fixed income, currencies and commodities revenues of 3.11 billion. Advisory fees climbed 25% year-over-year as the firm advised on 1.48 trillion of M&A volume, reinforcing its leading global dealmaking position and producing 4.6 billion in investment banking fees. Return on tangible equity reached 17.1%, reflecting strong capital efficiency.

The firm demonstrated disciplined capital management, returning 16.78 billion to shareholders through buybacks and a dividend increase. The quarterly dividend was raised by 12.5% to 4.50 per share, marking the twelfth consecutive year of dividend growth. Share repurchases accelerated after the firm released 2.48 billion of reserves tied to its consumer credit portfolio, underscoring commitment to returning excess capital.

Goldman Sachs accelerated its exit from its Apple Card partnership, recognizing a one-time pre-tax gain on reserve releases and reallocating resources into higher-return businesses. The firm’s assets under supervision grew to 3.61 trillion, supported by its acquisition of an active ETF provider. Management reaffirmed a medium-term pre-tax margin target of 30% for asset and wealth management, up from the mid-20s range, as fee-based revenues continue to scale.

Analysts have raised earnings forecasts following the quarter’s upside, driving Goldman’s forward P/E multiple to 18.7x, above its five-year average. Several firms upgraded their price targets and increased earnings estimates to reflect sustained strength in trading and advisory segments. Management sees potential for multiple expansion toward 20x over the next two to three years, supported by continued deal flow, disciplined expense control and stable capital returns.