finance
Goldman Sachs Fixed Income Revenue Drops 10% in Q1, $910 Million Below Estimates
Goldman Sachs's fixed income division revenue declined 10% in the first quarter, falling $910 million short of analysts' expectations, according to StreetAccount data. The bank attributed the underperformance to market conditions affecting rates and mortgages. Shares dropped as much as 4% on Monday following the earnings report.
Apr 15, 4:45 PM·1m read1 source
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# Goldman Sachs Fixed Income Underperforms in Q1 Goldman Sachs's fixed income division revenue fell 10% in the first quarter, according to StreetAccount data. The division's revenue came in $910 million below analysts' expectations for the period. CNBC reported the figures ahead of the bank's full earnings release.
The CFO spoke to an analyst after the bank's earnings report.
JPMorgan Chase posted fixed income trading revenue of $7.1 billion in the first quarter. The revenue jumped 21% from the prior year. Morgan Stanley reported a 29% increase in fixed income revenue for the same period. Several market participants said Goldman Sachs was caught offsides on trades tied to interest rates during the quarter.
Shifts Impact Rate Expectations Markets were expecting the Federal Reserve to cut interest rates at least twice in 2026, according to several market participants. Markets began pricing out interest rate cuts after the oil price surge, with some investors bracing for rate hikes this year.
The CEO said during the company's conference call, "When I look at the scale and the diversity of the business, it's performing very, very well." Goldman Sachs shares dropped as much as 4% on Monday following the earnings report.
