GOLDMAN SACHS GROUP INC 8-K

What Happened
Goldman Sachs filed a Form 8‑K (reported Jan 7, 2026; filed Jan 8, 2026) announcing it has agreed to transition the Apple Card program and associated accounts to a new issuer, with the transition expected to take about 24 months. The firm said the transaction will increase diluted EPS for Q4 2025 by $0.46, driven by a release of $2.48 billion in loan loss reserves, partly offset by $2.26 billion of reduced net revenues (markdowns on the credit card loan portfolio and contract termination obligations) and $38 million of operating expenses. Separately, Goldman Sachs announced changes to its business‑segment presentation effective Q4 2025 and restated prior period segment results back to 2021 for comparability; consolidated totals are unchanged.

Key Details

• Transition timeline: approximately 24 months; announcement date Jan 7, 2026.
• Q4 2025 EPS impact: +$0.46 per diluted share.
• Financial effects: $2.48 billion release of loan loss reserves; $2.26 billion reduction in net revenues; $38 million operating expenses.
• Segment changes: firm now reports three segments — Global Banking & Markets, Asset & Wealth Management, and Platform Solutions — with several reclassifications (e.g., transaction banking moved to Global Banking & Markets); prior-period segment results (from 2021) were conformed to the new presentation; consolidated totals unchanged.

Why It Matters
For investors, the Apple Card transition is material because it both reduces the firm’s credit exposure (release of reserves) and triggers large one‑time revenue markdowns, producing a net stated uplift to Q4 2025 EPS but shifting the future revenue profile from Platform Solutions. The segment reporting changes improve how Goldman allocates results across its three businesses (affecting comparability of segment-level revenue and profitability), though consolidated earnings, provisions and expenses are unchanged. Keep an eye on related disclosures over the next 24 months for details on timing, cash flow effects, and any ongoing impacts to revenue and credit exposure.