B of A Securities and Citigroup have adjusted their price targets for Goldman Sachs Group, reflecting updated valuation outlooks for the financial services firm. B of A Securities analyst Ebrahim Poonawala maintained a Buy rating and raised the target to $1300 from $1150. Separately, Citigroup analyst Keith Horowitz maintained a Neutral rating and increased the target to $1200 from $1100.

Rating and Target Details

The research notes from both firms highlight the following revisions:

Goldman Sachs Group continues to trade on the NYSE under the ticker symbol GS.

Goldman Sachs Group Inc reported earnings per share of $20.98 for the second quarter of 2026, significantly surpassing the analyst consensus estimate of $14.40. Net revenue increased 39% year over year to $20.34 billion, beating the consensus estimate of $16.13 billion, driven by strength in its Global Banking & Markets business. Following the announcement, the company's shares jumped 7.95% to $1,129.07 on Tuesday, hitting a new 52-week high, and subsequently rose 0.3% to $1,143.00 in pre-market trading as analysts adjusted their forecasts.

Strategic Drivers and Market Position

The firm maintained its position as the leading M&A advisor, with announced deal volumes reaching $1 trillion in the first half of 2026. Large cap corporate M&A volumes increased by 90% through the first half of the year. Chairman and Chief Executive Officer David Solomon noted that the AI investment cycle is expanding capital needs beyond core technology into infrastructure, creating opportunities in energy and data centers. Solomon stated that the artificial intelligence investment cycle remains in its early stages, describing it as the "relative early innings of a very, very significant" AI infrastructure buildout. He cautioned that the trend "won't be without bumps and recalibrations" as demand and technology evolve. Solomon also noted that deal backlog reached its highest level in five years, with particularly strong client activity in Asia supported by AI-related investments.

Segment Performance

Global Banking and Markets revenues reached a record $15.5 billion in the second quarter. Advisory revenues rose 17% year over year to $1.4 billion, while equity underwriting revenues jumped 130% to $985 million. Debt underwriting revenues increased 75% year over year to $1 billion, marking the firm's best quarter on record in this category. Equities produced record revenues of $7.4 billion, with intermediation revenues up 60% and financing revenues up 91% year over year. FICC net revenues were $4.6 billion, up 32% from the prior year.

Asset and wealth management revenues increased 20% year over year to $4.6 billion, with a pre-tax margin of 24% and ROE of 13.5%. Management and other fees rose 20% to a record $3.4 billion. Incentive fees totaled $112 million, with management expecting further growth in these fees through the rest of the year. Total assets under supervision surpassed a record $4 trillion, supported by $91 billion of long-term net inflows. The firm raised a record $59 billion in alternatives fundraising during the quarter, including $31 billion in private credit. The alternatives platform reached $459 billion in assets at the end of the second quarter, generating $725 million in management and other fees. The firm raised $85 billion in alternatives in the first half of the year, raising its full-year fundraising outlook to above $125 billion.

Analyst Reactions

Following the earnings announcement, several analysts revised their price targets for Goldman Sachs. Wells Fargo analyst Mike Mayo maintained the stock with an Overweight rating and raised the price target from $1,195 to $1,325. Keefe, Bruyette & Woods analyst Christopher McGratty maintained Goldman Sachs with a Market Perform and boosted the price target from $1,050 to $1,130. Barclays analyst Jason Goldberg maintained the stock with an Overweight rating and raised the price target from $1,048 to $1,245. JP Morgan analyst Kian Abouhossein maintained the stock with a Neutral and raised the price target from $900 to $955.

Citizens analysts Devin Ryan and Noah Katz maintained a Market Perform rating, arguing the stock's strong run already reflects much of the improving earnings outlook. Citizens raised its 2026 earnings estimate to $72.55 per share from $64.38 and increased its 2027 estimate to $74.25 from $69.75. The firm noted Goldman deserves a premium valuation due to its improving earnings mix and capital flexibility but cautioned that shares already price in much of the favorable outlook.

Capital Allocation and Shareholder Returns

Goldman Sachs announced a 25% increase in its quarterly dividend to $5 per share and repurchased $4 billion of common stock in the quarter. The firm's Common Equity Tier 1 ratio stood at 12.9% at the end of the second quarter, 150 basis points above its current capital requirement. Platform Solutions revenue totaled $221 million in the second quarter, with quarterly revenue expected to remain broadly stable for the rest of the year.