What is the financial impact of the Apple Card transition on Goldman Sachs?

The transition is expected to boost Goldman Sachs' fourth quarter 2025 diluted earnings per share by approximately $0.46. This is primarily due to a $2.48 billion release of loan loss reserves, partially offset by a $2.26 billion reduction in net revenues from portfolio markdowns and contract termination costs.

When is the Apple Card transition expected to be completed?

The transition is anticipated to take place over approximately 24 months from the announcement date.

Are there any changes to Goldman Sachs' business segments?

Yes, Goldman Sachs is making changes to its business segment reporting, effective with the fourth quarter of 2025. The firm will continue to report in three segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. These changes involve reallocating certain business activities to better reflect strategic focus, particularly within Platform Solutions, and prior period results have been conformed accordingly.

What specific business activities are being reclassified under the new segment reporting?

Key reclassifications include moving transaction banking to Global Banking & Markets, reporting institutional primary loan facilitation and structured letters of credit within FICC financing under Global Banking & Markets, allocating Urban Investment Group results across all three segments, and aggregating Equity and Debt Investments within Asset & Wealth Management to reflect a shift towards a third-party funds-driven business.

GOLDMAN SACHS GROUP INC 8-K: Earnings & Results

Summary

Goldman Sachs Group, Inc. (GS) has announced a significant strategic move involving the Apple Card program. The firm has entered into an agreement to transition the Apple Card program and associated accounts to a new issuer, with the process expected to conclude in approximately 24 months. This transaction is projected to have a notable positive impact on the firm's fourth quarter 2025 earnings per share, with an anticipated increase of $0.46. This EPS boost stems from a substantial release of loan loss reserves, amounting to $2.48 billion, which is partially offset by a reduction in net revenues ($2.26 billion) due to portfolio markdowns and contract termination costs, alongside minor operating expenses. In addition to this operational development, Goldman Sachs is also refining its business segment reporting to better align with its strategic focus, particularly within the Platform Solutions segment. While the core three segments—Global Banking & Markets, Asset & Wealth Management, and Platform Solutions—remain, there are reallocations of certain business activities. These changes, effective from the fourth quarter of 2025, are designed to reflect the firm's ongoing strategic refinement, especially concerning consumer-related activities, and prior period results have been conformed to this new reporting structure.

Key Highlights

1Goldman Sachs to transition Apple Card program and accounts to a new issuer over the next approximately 24 months.
2Transaction expected to increase Q4 2025 diluted EPS by $0.46.
3This EPS increase is driven by a $2.48 billion release of loan loss reserves.
4Partially offsetting the reserve release is a $2.26 billion reduction in net revenues due to portfolio markdowns and contract termination obligations.
5The firm is also implementing changes to its business segment reporting, effective Q4 2025, to align with strategic focus, particularly within Platform Solutions.
6Prior period segment results have been conformed to reflect these reporting changes.
7The segment reporting adjustments include reclassifications of transaction banking, institutional loan facilitation, and Urban Investment Group activities.

GOLDMAN SACHS GROUP INC 8-K Report, Financial Results (Jan 8, 2026)

Summary

Key Highlights

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