Goldman Sachs Group Inc. (GS) shares slipped Thursday after the Wall Street giant reported fourth-quarter results that told two very different stories. On one hand, the bank's core trading and investment banking operations fired on all cylinders. On the other hand, the expensive breakup with Apple (AAPL) over the Apple Card partnership left a nasty mark on the books.
The Apple Card Hangover
Net revenue fell 3% year over year to $13.45 billion, missing analyst estimates of $13.79 billion. The culprit? A staggering $2.26 billion hit from the bank's Platform Solutions division, tied to moving Apple Card loans to held-for-sale status and covering contract termination costs as the program transitions to a new issuer. It's a painful reminder that Goldman's consumer banking experiment didn't quite work out as planned.
On a brighter note, net interest income climbed to $3.71 billion from $2.35 billion in the prior-year quarter. But operating expenses also rose 18% to $9.72 billion, driven by higher compensation costs and transaction-based expenses.
Earnings Beat Despite Revenue Miss
Here's where things get interesting. Despite the revenue shortfall, Goldman posted earnings of $14.01 per share, up from $11.95 a year ago and beating the $11.65 consensus estimate. How? The provision for credit losses swung to a net benefit of $2.12 billion, compared to net provisions of $351 million in the year-ago quarter. That's accounting magic working in the bank's favor.
The firm's efficiency ratio came in at 64.4% for 2025, compared to 63.1% in 2024. Capital ratios remained healthy with the Standardized CET1 ratio at 14.4% and the Advanced CET1 ratio at 15.0%.
Assets under supervision reached a record $3.61 trillion, marking the 31st consecutive quarter of long-term fee-based net inflows. That's a remarkable streak that speaks to the stickiness of Goldman's wealth management franchise.




