Goldman Sachs reported Q4 2024 revenue of $32.24 billion, up 13.27% year over year and 2.27% quarter over quarter, supported by a broad-based earnings mix across Investment Banking and Global Markets. Net income for the quarter was $4.11 billion with diluted EPS of $11.95, reflecting a solid profitability cadence despite elevated funding costs. The company posted a strong operating cash flow of $46.77 billion and free cash flow of $46.18 billion for the period, underscoring the firm’s ability to generate substantial liquidity in a capital-intensive business.
Profitability metrics show a healthy gross margin of 41.93% and an operating margin of 16.31%, but interest expense of $18.37 billion weighed on overall earnings power. Goldman’s balance sheet remains exceptionally liquid, with cash and short-term investments totaling approximately $921.83 billion and total assets of $1.676 trillion. Net debt stood at roughly $434.84 billion, and the bank maintains a high debt-to-equity posture (approximately 2.81x). Management discipline around capital deployment is evident in reported share repurchases of $3.50 billion and dividends of $1.15 billion in the quarter, against a backdrop of meaningful long-term investments and balance sheet resilience.
Looking ahead, the absence of explicit forward guidance in the provided data means investors should monitor market activity in advisory and underwriting, trading volumes in Global Markets, and asset-management net inflows to gauge trajectory. The near-term outlook hinges on deal flow and market volatility; however, Goldman’s diversified revenue model and robust liquidity position provide a degree of earnings resilience. Valuation remains reasonable at roughly 11x forward earnings and a price-to-book around 1.5x, suggesting a balanced risk-reward profile given the cash generation and the potential for shareholder returns.