GS Connect S&P GSCI Enhanced Commodity Total Return ETN

What they do

Goldman Sachs provides financial services to corporations, financial institutions, governments, and individuals. Its operations include investment banking (advisory, underwriting), FICC and Equities intermediation and financing, asset and wealth management, and consumer credit card and deposit activities via Platform Solutions.

Revenue drivers

• Global Banking & Markets — Largest segment; generated $15.52 billion in net revenues in Q2 2026, up 53% YoY. Includes investment banking fees ($3.40 billion), FICC ($4.59 billion), and Equities ($7.42 billion).
• Investment banking fees — Advisory ($1,378 million), equity underwriting ($985 million), debt underwriting ($1,032 million). Growth driven by secondary and IPO activity and leveraged finance.
• Equities — Net revenues of $7.42 billion in Q2 2026, up 72% YoY, driven by derivatives, cash products, and prime financing.
• Asset & Wealth Management — Generated $4.60 billion in net revenues in Q2 2026 (from the earnings release excerpt), primarily from management fees, incentive fees, and private banking and lending.

Recent performance

In Q2 2026, net revenues were $20.34 billion, up 39% YoY, and net earnings were $6.63 billion. Diluted EPS was $20.98, compared to $10.91 in Q2 2025. Book value per share reached $367.67, up 2.8% YTD. Annualized ROE was 23.5% for the quarter and 21.7% for the first half.

Strategy

The firm is narrowing its strategic focus on consumer activities within Platform Solutions, moving transaction banking into Global Banking & Markets. It is transitioning from direct balance-sheet investments to a scaled third-party funds-driven business in Asset & Wealth Management. Urban Investment Group results are now allocated across all segments to reflect shared CRA requirements. Investment banking backlog increased sequentially and year-end, indicating pipeline strength.

Risks

• Market risk — Significant exposure to FICC and Equities intermediation, which can be volatile with market conditions.
• Credit risk — Large lending and financing activities expose the firm to potential defaults by borrowers and counterparties.
• Operational and cybersecurity risk — The 10-K outlines management of operational and cybersecurity risks, indicating potential disruption from system failures or cyber attacks.
• Regulatory risk — As a bank and financial holding company, subject to FRB regulation and capital requirements; changes could impact operations.

Outlook

Management increased the quarterly dividend to $5.00 per common share for Q3 2026, signaling confidence. The investment banking fee backlog increased compared with Q1 2026 and end of 2025, suggesting continued revenue momentum. The firm continues to execute strategic segment changes to focus on higher-growth areas.