Double-Digit Growth and the Visibility Gap

by Christine Short of Wall Street Horizon, 4/15/26

Key Takeaways

  • Banks kicked off Q1 2026 earnings season this morning with a rare Goldman Sachs front-run, with JPMorgan, Citigroup and Wells Fargo on deck for tomorrow.

  • The S&P 500® is projected to deliver its sixth consecutive quarter of double-digit earnings growth at 12.6%, fueled largely by a powerhouse 45% expansion in the Information Technology sector.

  • Following Constellation Brands' lead, investors are bracing for more guidance withdrawals as corporations navigate a murky second-half outlook clouded by geopolitical tensions and volatile energy costs.

Financials in Focus: Big Banks Kick Off Q1 Earnings Season

In a rare plot twist, Goldman Sachs front-run the banking pack today, marking the first time the firm has kicked off the earnings season ahead of JPMorgan Chase since 2018. The storied investment bank delivered notable results, comfortably surpassing analyst’s estimates on both the top and bottom-line. While the firm achieved record revenues in its equities division, which surged 27% to $5.33 billion due to strong prime financing, FICC (fixed income, currencies & commodities) trading proved to be a relative weak point, falling 10% year-over-year as softer market-making conditions in interest rates and mortgages weighed on results.

Offsetting the trading volatility was a powerful rebound in investment banking, where fees jumped 48% to $2.84 billion on the back of a significant increase in completed M&A and debt underwriting activity. To account for wholesale loan impairments, the bank marginally increased its provision for credit losses to $315 million, reflecting a more cautious stance on the broader lending environment. Looking ahead, CEO David Solomon emphasized the resilience of the firm's "Capital Markets Flywheel," noting that despite geopolitical headwinds, the bank is well-positioned to serve clients as the bull market matures and broadens into more cyclical sectors.1

Attention now shifts to the core banks to provide a broader look at the economy, with JPMorgan Chase, Wells Fargo, and Citigroup all reporting tomorrow before the bell. Similar to results seen from GS, analysts expect trading desks will likely see equities outperform FICC, as fixed-income volumes dampened following the recent ceasefire. Investors will also be eager to hear about consumer resilience, with particular interest in credit card delinquencies and increased loan loss provisions as a gauge of consumer health.