In this article, we discuss Goldman Sachs’s Top 12 Growth Stock Picks.
During much of the market cycle leading up to 2026, the United States equities markets were largely defined by growth stocks. However, data shows a clear shift in tone as 2026 drags on. In 2025, for instance, the S&P 500 Growth Index gained 22.18%, and this was an underperformance based on 2024 performance, which was 35.66%. As of February 18, 2026, however, the index was down 2.46% year to date. In contrast, the broader S&P 500 was up 0.33% year to date.
To ValueWalk’s Jacob Wolinsky, this is an all too familiar script. According to Wolinsky, value stocks outperformed growth stocks for the first part of 2025.
“Investors came into 2025 wary of high valuations after two straight years of huge returns for mostly growth and tech stocks,” said Wolinsky, adding that “As a result, there was a rotation out of overvalued large cap growth names into value, smaller caps, and more stable investments.”
However, things flipped in the second half of the year after the ‘Liberation Day’-inspired rout in April. Sentiment changed and investors rushed back to tech and growth stocks, which were now cheaper, according to Wolinsky. By the end of the year, the tech-heavy Nasdaq Composite topped a 20% performance and outperformed the broader market. So, if this script were to replicate in 2026, Wolinsky expects growth stocks’ performance to beat value and other stocks across the board by yearend.
This is the environment in which Goldman Sachs Group Inc.’s asset management segment operates. The segment posted blowout performance last year; Goldman’s Asset and Wealth Management division closed 2025 with a record $3.61 trillion in total assets under supervision (AUS). In the three months ended December 31, 2025, the fund added $154 billion in AUS, and $469 billion in the whole of 2025.
According to Goldman’s own survey, asset managers, especially hedge funds, surpassed expectations in 2025. They delivered double-digit returns for the second year running. For that reason, Goldman expects more money to be allocated to this category of funds this year. In other words, investors are more confident about the stock picks that asset managers like Goldman Sachs make in 2026. Because this fund has substantial interest in growth stocks, this article will highlight some of its top picks.
Source: Pexels.com
Our Methodology
To create this list, we analyzed Goldman Sachs’ portfolio in Insider Monkey, focusing on the 13F filing for the quarter ended December 31, 2025. We scanned for high growth stocks that have posted gains in revenue and earnings by more than 10% over the last five years and boast an upside potential of more than 20% as of February 20, 2026. We then ranked the stocks according to the value of Goldman Sachs’ stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Goldman Sachs’s Top 12 Growth Stock Picks
12. Shopify Inc. (NYSE:SHOP)
Goldman Sachs’s Stake: $2,121,559,619
5-Year Sales Growth: 15.08%
5-Year Earnings Growth: 31.58%
Stock Upside: 31.54%
Shopify Inc. (NYSE:SHOP) is one of Goldman Sachs’s top growth stock picks. On February 17, Truist Securities analyst Terry Tillman upgraded Shopify, Inc. (NASDAQ:SHOP) from Hold to Buy and raised his price target on the stock from $110 to $150.
Tillman cited the main reason for the upgrade as an industry-wide drop in software stock valuations brought on by investor anxiety over artificial intelligence. Tillman pointed out that Shopify is one of very few software companies that has recently been able to show strong and accelerating growth at a time when many of its peers are struggling.
The analyst identified five areas he believes will drive Shopify’s growth over the long term: expansion into international markets, continued development of its payments business, growing adoption by large enterprise customers, growth in its business-to-business segment, and the emerging opportunity in what he called “agentic commerce.”
In a different update, Shopify shared its Q4 2025 earnings on February 11, and described the quarter as record-breaking. Quarterly revenue came in at $3.67 billion, up 31% year over year and ahead of the Wall Street consensus of $3.59 billion. This growth was driven by stronger merchant adoption of payments and subscription services.
The quarter’s adjusted EPS was $0.48, just below the $0.50 analyst estimate. Management explained that the EPS miss was because the company absorbed higher costs tied to artificial-intelligence development, marketing, and international expansion.
Shopify guided for low-30% revenue growth in Q1 2026, well above Wall Street’s earlier estimate of 25%. The company also expects gross profit to grow 27% year over year in the first three months of FY2026.
Shopify Inc. (NYSE:SHOP) provides cloud-based commerce solutions that allow merchants to set up, manage, and scale online and offline retail operations. Its platform includes tools for payments, marketing, logistics, and analytics, serving millions of businesses worldwide.
11. Palantir Technologies Inc. (NASDAQ:PLTR)
Goldman Sachs’s Stake: $2,215,027,028
5-Year Sales Growth: 32.58%
5-Year Earnings Growth: 177%
Stock Upside: 46.99%
Palantir Technologies Inc. (NASDAQ:PLTR) is one of Goldman Sachs’s top growth stock picks. On February 18, Palantir Technologies Inc. (NASDAQ:PLTR) named Rackspace Technology its dedicated data migration and global implementation partner for its two flagship platforms, Foundry and Artificial Intelligence Platform, or AIP. Foundry facilitates enterprise data integration and analytics, and AIP operationalizes AI in real-world business decisions.
According to Palantir, enterprise clients have long struggled to move its deployments from pilot programs into full production. Now, the partnership with Rackspace simplifies and expedites it. Rackspace addresses issues such as complexity of data migration, security compliance, and cloud infrastructure setup using a governed operating model. Its pre-built security, compliance, and operational controls across hybrid cloud environments wraps around Palantir’s platforms and eliminates the need for clients to build that infrastructure themselves. This cuts deployment timelines to weeks or months.
Separately, on February 11, investor Michael Burry presented a bear case against Palantir and raised concerns about the broader AI investment cycle. In a 10,000-word essay published on Substack, Burry argued that the current pace of investment in AI infrastructure is unlikely to generate the long-term returns that investors are expecting.
On Palantir, Burry noted that the company was caught off guard by the rise of ChatGPT and the rapid commercialization of large language models, and that following that development, management began heavily featuring AI language in its earnings communications.
Burry also challenged Palantir’s reported profitability. He argued that a large portion of the company’s earnings is effectively an “illusion” because the company relies heavily on stock-based compensation. So, when stock grants are counted as a real expense, the company’s profitability looks considerably weaker.
A day after Burry’s essay, on February 12, analysts at DA Davidson issued a response in which they concluded that Burry’s essay contained “no new evidence or an argument” that would lead them to change their view on Palantir’s business. As such, the firm maintained its Neutral rating on Palantir. They stated that the firm does agree with Burry’s broader concerns about the AI investment cycle and the issue of data center depreciation, but draws a clear distinction between those macro concerns and the specific situation at Palantir.
Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms for data integration, analytics, and decision-making, serving government agencies and commercial enterprises. Its products, including Palantir Foundry and Gotham.
