NEW YORK: Goldman Sachs received a boost from analysts after delivering a stronger-than-expected second-quarter performance, prompting several firms to raise their price targets on the Wall Street banking giant.

The investment bank posted quarterly profit of $6.63 billion, or $20.98 per share, comfortably beating market expectations. Revenue climbed to a record level, fueled by exceptional performance in equities trading, investment banking, and asset management.

Goldman Sachs’ equities trading division generated a record $7.42 billion in revenue, marking a sharp year-over-year increase as heightened market volatility and increased client activity boosted trading volumes. Meanwhile, investment banking fees surged on the back of stronger merger, acquisition, and capital markets activity.

Chief Executive David Solomon expressed confidence in the firm’s outlook, saying momentum has accelerated across its businesses. He also highlighted the continued expansion of artificial intelligence infrastructure as a key driver of future financing, capital formation, and advisory opportunities over the coming years.

Following the earnings report, Goldman Sachs shares jumped to a record high as investors welcomed the bank’s robust financial results and optimistic guidance. Analysts responded by raising their price targets, citing improving deal activity, resilient trading operations, and strong growth prospects supported by AI-related investments.

The strong earnings from Goldman Sachs also reinforced confidence in the broader U.S. banking sector, with several major financial institutions reporting better-than-expected quarterly results driven by active financial markets and increased corporate financing demand.