Goldman Sachs (NYSE:GS) held steady near the $1,000 mark to close out a holiday-shortened week, with all eyes now turning to its second-quarter earnings report scheduled for July 14. U.S. equity markets were closed Friday for Independence Day, leaving Thursday's session as the final regular trading day of the week. The stock finished at $1,021.00, up just $1.39, or 0.14%, from last Friday's close of $1,019.61. Volume was light at 1.54 million shares, roughly 28.5% below the 65-day average.
Goldman is currently trading at 18.65 times earnings, a valuation that surpasses several major banking peers. JPMorgan Chase (NYSE:JPM) trades at 16.56x, Bank of America (NYSE:BAC) at 14.57x, and Citigroup (NYSE:C) at 17.30x. Morgan Stanley (NYSE:MS) leads the group with a P/E of 19.38x. Goldman's premium valuation comes amid a backdrop of strong M&A advisory activity and ahead of its Q2 earnings release, which could provide further clarity on revenue trends and capital returns.
New data from Reuters, citing LSEG figures, shows Goldman Sachs dominated EMEA M&A in the first half of 2026. Total deal value in the region reached $676 billion, more than double the prior year and the highest in 19 years. Goldman advised on 111 deals, capturing a 44% share of deal value—its best first-half showing since 2018 and up from 42% a year earlier. The bank worked on 15 of the 20 largest EMEA transactions, including Unilever's food unit sale to McCormick (worth about $45 billion) and TK Elevator's $34 billion deal with Kone.
Carsten Woehrn, Goldman's EMEA M&A co-head, noted that companies are making “long-term strategic” moves. Valeria Vitkova of Bayes Business School described this as a “sustained competitive advantage” for the firm. However, investors remain cautious, as advisory fees are recognized only upon deal completion, and league tables can shift if transactions collapse. The bank's shares are currently 9.2% below the 52-week high of $1,125.00 set on June 18.
Valuation concerns have been a recurring theme. On June 30, Oppenheimer downgraded several large U.S. investment banks, including Goldman and Morgan Stanley, to underperform from perform, citing limited upside potential despite a strong operating environment. Goldman shares dipped about 1% following that note.
In private credit, Goldman's GS Credit reported second-quarter repurchase requests of 3.24% of shares, well below its 5% quarterly limit. By contrast, some rival non-traded BDCs saw redemption requests ranging from 10% to nearly 17%. The fund's non-accrual rate stood at 0.2% as of March 31, versus a peer range of 0.4% to 2.4%. Gross inflows in Q2 were approximately $275 million.
On the capital front, Goldman's stress capital buffer remains at 3.4% through September 30, 2027, with its standardized CET1 ratio requirement unchanged at 11.4%. The company plans to increase its common dividend to $5.00 per share from $4.50, pending board approval, starting July 1. CEO David Solomon called the move evidence of the firm's “continued strength of our earnings and capital position.”
Macro conditions are also in focus. Reuters reported Thursday that U.S. job growth came in softer than expected for June, prompting traders to lower the probability of a Fed rate hike to around 60%, down from roughly 75% before the data. A less aggressive rate outlook could support deal-making activity, though banks still need to demonstrate revenue growth.
Goldman Sachs is set to report second-quarter results on Tuesday, July 14, at approximately 7:30 a.m. ET, followed by an analyst call at 9:30 a.m. ET. The earnings release will be a key catalyst for the stock, providing a clearer picture of how advisory gains and private credit performance translate into bottom-line results.
