Shares of Goldman Sachs (GS, Financial) climbed about 3% on Monday morning after the bank posted stronger-than-expected first-quarter earnings, driven by a stellar showing from its equities trading unit.
Net income for the quarter rose 15% from a year ago to $4.74 billion, or $14.12 per share, beating analyst expectations of $12.33. Revenue grew 6% year-on-year to $15.06 billion, topping forecasts of $14.77 billion.
The biggest boost came from Goldman's stock trading desk, which delivered $4.2 billion in revenue, a 27% increase from the same period last year and the best quarter on record for the unit.
CEO David Solomon said the firm is “confident” in its ability to support clients despite evolving market conditions as it heads into the second quarter.
The earnings follow a strong report from JPMorgan (JPM, Financial) last week, which saw a 9% jump in quarterly profit to $14.6 billion. Wall Street's robust Q1 could face fresh challenges, however, as newly imposed U.S. tariffs begin to ripple through markets in the months ahead.
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