GS AI Stock Analysis – Buy, Hold, or Avoid?
The Goldman Sachs Group, Inc. (GS)
Goldman Sachs (GS) is fundamentally strong with robust earnings, margin expansion, and a resilient business model, but the stock is trading near historical highs with technicals signaling consolidation and sentiment remaining mixed. While long-term prospects are attractive, current valuation and short-term technical weakness suggest limited immediate upside. Investors should hold existing positions and await a better entry point for new purchases.
Fundamentals
Goldman Sachs (GS) exhibits strong financial health, robust profitability, and a track record of consistent earnings beats over the past two years. The firm is benefiting from favorable capital markets conditions, prudent cost management, and strong returns for shareholders, but sits near historical valuation highs after a considerable price rally.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
-6.56% YoY
Q4 2025
Net Income
12.31% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 30.1B | 32.2B | 31.3B | 31.6B | 32.2B | 31.5B | 31.2B | 32.4B |
| Revenue Growth YoY | -6.56% | +2.00% | +0.28% | -2.61% | +13.27% | +10.51% | +19.71% | +27.63% |
| Net Income | 4.6B | 4.1B | 3.7B | 4.7B | 4.1B | 3.0B | 3.0B | 4.1B |
| Net Income Growth YoY | +12.31% | +37.06% | +22.35% | +14.67% | +104.73% | +45.29% | +150.25% | +27.77% |
| EPS | $14.21 | $12.42 | $11.07 | $14.25 | $12.17 | $8.52 | $8.73 | $11.67 |
| EPS Growth YoY | +16.76% | +45.77% | +26.80% | +22.11% | +121.68% | +54.35% | +178.91% | +30.98% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.32% | 46.17% | 45.41% | 46.83% | 41.93% | 39.02% | 39.92% | 42.89% |
| Operating Margin | 12.05% | 16.77% | 15.86% | 17.90% | 16.31% | 12.65% | 12.56% | 16.17% |
| Net Margin | 15.33% | 12.74% | 11.91% | 15.02% | 12.75% | 9.48% | 9.76% | 12.76% |
| Return on Equity (ROE) | 3.69% | 3.30% | 3.00% | 3.81% | 3.37% | 2.47% | 2.55% | 3.49% |
| Return on Assets (ROA) | 0.26% | 0.23% | 0.21% | 0.27% | 0.25% | 0.17% | 0.18% | 0.24% |
Technical Analysis
GS is currently in a stage 2 advancing phase with an underlying uptrend supported by a golden cross of the 50 SMA above the 200 SMA. However, price is below the 50 SMA and momentum indicators suggest a neutral to weak trend, indicating a consolidation or pullback phase. The ADX confirms weak trend strength, signaling a range-bound environment near key moving averages.
No extreme reading
Mixed signals
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Goldman Sachs (GS) exhibits strong financial health, robust profitability, and a track record of consistent earnings beats over the past two years. The firm is benefiting from favorable capital markets conditions, prudent cost management, and strong returns for shareholders, but sits near historical valuation highs after a considerable price rally.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$11.95
Estimated
$11.52
Surprise
+$0.43
Surprise %
+3.73%
Revenue
Actual
$30.13B
Estimated
N/A
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $11.95 | $12.25 | $10.91 | $14.12 | $11.95 | $8.40 | $8.62 | $11.58 |
| EPS (Estimated) | $11.52 | $11.03 | $9.65 | $12.32 | $8.03 | $6.89 | $8.34 | $8.56 |
| EPS Surprise | +$0.43 | +$1.22 | +$1.26 | +$1.80 | +$3.92 | +$1.51 | +$0.28 | +$3.02 |
| % Diff | +3.7% | +11.1% | +13.1% | +14.6% | +48.8% | +21.9% | +3.4% | +35.3% |
| Revenue | ||||||||
| Revenue (Actual) | $30.13B | $15.18B | $14.58B | $15.06B | $13.87B | $12.7B | $12.73B | $14.21B |
| Revenue (Estimated) | - | $14.12B | $13.51B | $14.77B | $12.36B | $11.77B | $12.35B | $12.94B |
| Revenue Surprise | - | +$1.06B | +$1.08B | +$296.82M | +$1.51B | +$930.16M | +$382.45M | +$1.27B |
| % Diff | - | +7.5% | +8.0% | +2.0% | +12.2% | +7.9% | +3.1% | +9.8% |
Valuation
Goldman Sachs currently trades at a valuation reflecting a mature financial services firm with solid earnings growth and strong market positioning. Despite modest revenue decline recently, its operating profitability and returns remain robust, supported by strength in investment banking and wealth management segments. Consensus analyst sentiment is cautiously optimistic, suggesting a fair valuation with moderate upside potential based on growth prospects in capital markets and M&A activity.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 14.88 | 15.04 | 14.91 | 9.25 | 11.23 | 13.45 | 12.56 | 8.40 |
| Price to Sales | 9.12 | 7.67 | 7.10 | 5.55 | 5.73 | 5.10 | 4.90 | 4.28 |
| Price to Book | 2.20 | 1.99 | 1.79 | 1.41 | 1.51 | 1.33 | 1.28 | 1.17 |
| Enterprise Value to EBITDA | 175.62 | 125.37 | 120.56 | 100.37 | 107.64 | 134.34 | 114.29 | 89.80 |
| Enterprise Value to Revenue | 24.23 | 23.09 | 21.50 | 19.57 | 19.21 | 19.64 | 16.72 | 16.26 |
Sentiment & Analyst Ratings
Goldman Sachs (GS) currently sees a predominantly neutral to mixed sentiment from analysts, with most recommending a hold and moderate upside potential reflected in price targets around the $900-$980 range. Recent news highlights technical weakness with a bearish head and shoulders pattern but also positive institutional interest and strong dividend growth supporting investor confidence.
Analyst Recommendations
Risk Assessment
Goldman Sachs exhibits a moderate financial risk profile with improving liquidity but elevated leverage typical in its capital markets sector. Regulatory scrutiny and competitive market pressures inject caution, though the firm's diversified business model offers resilience. Investors should weigh the firm's stable liquidity position against ongoing regulatory investigations and substantial debt levels.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.21 | 0.50 | 0.30 | 0.90 | 0.93 | 0.92 | 0.92 | 0.92 |
| Quick Ratio | 1.21 | 0.50 | 0.30 | 0.90 | 0.93 | 0.92 | 0.92 | 0.92 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 4.95 | 5.36 | 4.86 | 4.91 | 5.06 | 5.06 | 4.81 | 5.04 |
| Debt-to-Assets | 0.34 | 0.37 | 0.34 | 0.35 | 0.37 | 0.35 | 0.35 | 0.35 |
Liquidity Assessment
Current Ratio: 1.21(Adequate)
Quick Ratio: 1.21(Strong)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 4.95(High)
Debt-to-Assets: 0.34(Moderate)
The company has relatively high debt levels, which may increase financial risk in economic downturns.
Frequently Asked Questions about GS
AI Answers: Common Questions About GS
Get AI-powered answers to the questions investors ask most about The Goldman Sachs Group, Inc.
GS is not a strong buy at current levels given its P/E of 16.8, price near $862 (close to the 52-week high of $984.70), and technicals showing consolidation below the 50 SMA ($921). While fundamentals are robust, a better entry point would be on a pullback toward the $820-$785 support zone.
There is no compelling reason to sell now unless your thesis has changed; fundamentals remain strong and there is no technical breakdown below key support. Hold if already invested, but avoid adding until technical momentum improves or valuation becomes more attractive.
The biggest risks are high leverage (debt/equity near 5x), ongoing regulatory investigations in consumer banking and ESG, and sensitivity to market downturns or geopolitical shocks. While liquidity has improved (current ratio 1.21), interest coverage is tight and macro volatility could impact earnings.
Analyst price targets cluster around $900-$980, with technical resistance at $921 (50 SMA) and $985 (52-week high); downside support is at $828 (150 SMA) and $785 (200 SMA). Near-term upside is limited unless the stock breaks above $921 with volume.
GS is fairly valued with a P/E of 16.8 and price-to-sales above sector averages, reflecting its premium market position and earnings growth (~12% forecast for 2026). EV/EBITDA is elevated but typical for capital markets firms; the stock is not undervalued, but not excessively overvalued either.
Fundamentally, GS is strong: gross margin above 45%, net margin 13.7%, ROE near 13%, and consistent double-digit EPS growth. The balance sheet shows improved liquidity, though leverage remains high, and earnings quality is high with strong cash generation.
Technically, GS is consolidating below its 50 SMA ($921) with RSI at 39 (neutral) and weak trend strength (ADX <20). Support is at $828 and $785, resistance at $921 and $985; traders should wait for a breakout or a pullback to support before entering.
Key catalysts include upcoming earnings (with a history of beats), renewed M&A or capital markets activity, and macro events such as interest rate changes or geopolitical developments. Watch for institutional buying signals and technical breakouts above $921.
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