Goldman Sachs (GS) offers NVIDIA-linked auto-callable notes

The Goldman Sachs Group (GS) — with the securities issued by GS Finance Corp. and guaranteed by The Goldman Sachs Group, Inc. — confirmed it’s offering contingent income auto-callable securities tied to the common stock of NVIDIA Corporation.

GS stock chart

GS

Details in the pricing materials sketch a product that will appeal to income hunters but carries meaningful downside risk. The notes are sold in $1,000 increments and are designed to pay a quarterly coupon only under specific stock-price conditions while automatically redeeming early if NVIDIA performs strongly.

How these notes pay — and where the risk hides

Put simply: you get scheduled quarterly coupons, but only if NVIDIA’s share price on each coupon observation date is at or above a downside threshold equal to 60% of the note’s initial share price. If the threshold is met, you receive the coupon; if it isn’t met, you get nothing that quarter.

There is a minimum coupon floor that the issuer sets on pricing day — the materials note it will be at least $37.25 per $1,000 principal, subject to adjustment when the final terms are set. But remember: that floor is separate from the conditional payment rule. Missing an observation can mean a missed coupon even if the headline yield looked attractive when you bought.

The notes are also auto-callable. Beginning with the first call observation in late May 2026, if NVIDIA closes at or above the initial share price on a call observation date the notes are redeemed early and you get your $1,000 back plus a final coupon. That caps your upside: you do not participate in NVIDIA’s share appreciation beyond the coupon schedule.

Crucially, at the stated maturity in early March 2029, the principal repayment depends on NVIDIA’s final share price. If the final price is at or above the 60% threshold, you receive $1,000 in cash. If it’s below, your repayment is reduced pro rata to the share performance — meaning you could lose a large portion, or all, of the $1,000 principal.

Timing, pricing and the math that matters

The materials expect the notes to price in late February and to have an original issue date in early March — pricing is expected on or about Feb. 27, 2026, with an original issue date expected March 4, 2026. The stated maturity is expected March 2, 2029, and the last coupon observation is expected Feb. 27, 2029. Call observations run from May 27, 2026 through Nov. 27, 2028.

On a headline level the preliminary range values these securities at roughly $910 to $970 per $1,000 principal in a secondary-market sense, and the underwriting take is about 2.25%, leaving the issuer roughly 97.75% of each $1,000 sold. That gap is real: it reflects the dealer costs, hedging and the built-in protection (which is partial and conditional, not full principal protection).

Think of the trade-offs this way: you’re buying conditional income and a short, structured view on NVIDIA. You get a series of coupon opportunities, but you accept capped upside and real downside at maturity if NVIDIA sells off below the 60% barrier.

Why Goldman Sachs’ role matters here

Goldman Sachs is selling the notes through its financing arm and guaranteeing them, while underwriting and market-making around the product. That matters because this is a product they can warehouse, hedge and re-sell from their trading inventory — the firm’s business lines include underwriting, advisory, market-making and structured products, which lets it design and distribute these kinds of packaged yields. For buyers that can be convenient; for someone judging counterparty exposure, it means your repayment depends on both NVIDIA and Goldman Sachs’ credit support.

Also note the issuer’s stock itself: the recent trading snapshot shows GS shares closed around $902.63 on Feb. 24, 2026, up about 1.2% for that day; the RSI sits near 42, which is a neutral reading — useful context if you track the bank’s balance-sheet risk or hedging behavior around structured products.

And because Goldman Sachs both distributes and hedges these notes, the pricing gap and the minimum coupon size will be set when the deal actually prices. That final math will determine whether the deal represents a compelling yield relative to simpler alternatives like covered calls, dividends plus put hedges, or just holding shares.

Bottom line: these notes are a bet on stable-to-better-than-bearish NVIDIA share performance through early 2029 in exchange for a packaged income stream. They’re not principal-protected, and they cap upside — so the product is best suited for an investor who prioritizes conditional yield and understands the path-dependent nature of payments.

Watch the pricing on or about Feb. 27, 2026 and the original issue expected March 4, 2026; if you consider buying, run the scenario math around NVIDIA falling to 60% of the start price and compare the after-fee, after-risk returns to plain stock ownership plus income strategies.

For more on the structure and the exact terms, consult the pricing materials, and for background on Goldman Sachs’ businesses see what the company does.