Goldman Sachs: Blowout Quarter, 11% Dividend Raise, But You Shouldn't Chase Here

The Goldman Sachs Group, Inc. delivered a blowout Q2, with revenue up 39.5% and EPS up 92% year-over-year, driven by robust deal activity and capital markets strength. GS's Global Banking & Markets and Asset & Wealth Management segments posted strong double-digit revenue growth, while Platform Solutions faced continued headwinds from Apple Card loan markdowns. Management executed $4 billion in share buybacks, raised the dividend by 11.1%, and maintains a CET1 ratio of 12.9%, signaling a healthy balance sheet and ongoing capital returns. I maintain a Buy rating on GS, targeting 25% upside to $1,428, supported by AI-driven M&A/IPO activity, though near-term underperformance risk exists if markets weaken.

Although there's a ton of uncertainty going on right now, particularly related to the ongoing geopolitical tensions between the U.S. and Iran, the market has continued to plod higher. Furthermore, some stocks and