Goldman Sachs (GS, Financial) is exploring the integration of an automated software engineer known as Devin, developed by AI startup Cognition. This initiative could potentially expand the firm's team of 12,000 human developers. According to the company's technology leader, Devin is anticipated to aid the workforce by undertaking various tasks typically handled by human developers.
The plan involves initially implementing hundreds of Devin units, with the potential to scale into the thousands depending on future applications. This move reflects Goldman Sachs' strategy to enhance its development capabilities through technological advancements.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for The Goldman Sachs Group Inc (GS, Financial) is $675.57 with a high estimate of $801.00 and a low estimate of $500.00. The average target implies an downside of 4.73% from the current price of $709.12. More detailed estimate data can be found on the The Goldman Sachs Group Inc (GS) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, The Goldman Sachs Group Inc's (GS, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Goldman Sachs Group Inc (GS, Financial) in one year is $479.39, suggesting a downside of 32.4% from the current price of $709.12. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Goldman Sachs Group Inc (GS) Summary page.
GS Key Business Developments
Release Date: April 14, 2025
- Net Revenues: $15.1 billion for Q1 2025.
- Earnings Per Share (EPS): $14.12.
- Return on Equity (ROE): 16.9%.
- Return on Tangible Equity (ROTE): 18%.
- Global Banking & Markets Revenues: $10.7 billion.
- Advisory Revenues: $792 million.
- Equity Underwriting Revenues: $370 million.
- Debt Underwriting Revenues: $752 million.
- FICC Net Revenues: $4.4 billion.
- Equities Net Revenues: $4.2 billion.
- Asset & Wealth Management Revenues: $3.7 billion.
- Total Assets Under Supervision: $3.2 trillion.
- Long-term Net Inflows: $29 billion.
- Alternative Assets Under Supervision: $341 billion.
- Net Interest Income: $2.9 billion.
- Provision for Credit Losses: $287 million.
- Total Operating Expenses: $9.1 billion.
- Efficiency Ratio: 60.6%.
- Common Equity Tier 1 Ratio: 14.8%.
- Capital Returned to Shareholders: $5.3 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Goldman Sachs Group Inc (GS, Financial) reported strong first-quarter net revenues of $15.1 billion and earnings per share of $14.12.
- The company achieved a return on equity (ROE) of 16.9% and a return on tangible equity (ROTE) of 18%, indicating robust profitability.
- Assets under supervision reached a record $3.2 trillion, marking the 29th consecutive quarter of long-term fee-based net inflows.
- The Global Banking & Markets segment produced revenues of $10.7 billion, with an ROE of over 20%, showcasing strong performance.
- The company announced a multi-year share repurchase program of up to $40 billion, providing increased capital management flexibility.
Negative Points
- Investment banking activity was more muted than expected due to a volatile market backdrop, impacting expected revenue levels.
- The macroeconomic outlook is uncertain, with expectations for US growth falling from over 2% to 0.5%, increasing recession risks.
- The company faces significant near-term and longer-term uncertainty, constraining clients' ability to make strategic decisions.
- The volatile market environment has led to concerns about the sustainability of financing and trading activities in the short term.
- The company recorded a provision for credit losses of $287 million, primarily related to the credit card portfolio.
