Overview
Goldman Sachs
GS · NYSEQ3 2026Financials
Since the Report + 1.9%
Revenue grew 23.0% year over year, EPS beat the estimate by 32.3%; the stock fell 0.2% in its first reaction.
- Net RevenuesQ3
- $18.68B
- Estimate $16.83B · Beat by 11.0%
- EPSGAAP
- $17.01
- Estimate $12.86 · Beat by 32.3%
Verdict
BUYGoldman Sachs beat third-quarter expectations by 11.0% on revenue and 32.3% on earnings per share, clearing both gates. The stock still closed 0.23% lower, as EPS fell 19% from the second quarter and the investment banking backlog shrank. Next, watch whether equities financing holds up and how much CET1 buffer remains.
Close on Report DayOct 13
$891.91▼ 0.2%Report-Day Move
- Market Cap(Today)
- ≈ $265 B
- 1Y Return(At Report)
- + 13%
- P/E(At Today's Price · $69.55 · Trailing 12M)
- 13.1
- Net Margin(Trailing 12M)
- 15.8%
Earnings Summary
In 30 Seconds- Net revenues of $18.68 billion beat expectations by 11.0%, and EPS of $17.01 beat by 32.3%.
- Equities grew 72%, but the investment banking backlog shrank from the end of the second quarter and the firm gave no guidance.
- The stock rose as much as 4.1% intraday, then closed 0.23% lower as investors focused on the sequential EPS drop and backlog.
The Numbers
Equities Net Revenues
$6.44B
▲ 72% Year Over Year · Financing ▲ 96%
Return on Equity (ROE)
18.7%
Q3 25 14.2% · Q2 26 23.5%
Stock Reaction
−0.23%
Close to Close · Intraday High +4.1%
Guidance
No Company Guidance
Alternatives Fundraising Goal ~$150B
Quarterly Revenue ($ Billion)
15.18
Q3 25 · $15.2 B
13.45
Q4 25 · $13.5 B · QoQ − 11.4%
17.23
Q1 26 · $17.2 B · QoQ + 28.0%
20.34
Q2 26 · $20.3 B · QoQ + 18.1%
18.68
Q3 26 · $18.7 B · QoQ − 8.2% · YoY + 23.0%
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
Q4 2026 Company Guidance
- Alternatives Fundraising (2026)150 billion
Nine Months $122B · ~$28B Remaining
- Full-Year Tax Rate20%
Company Outlook Maintained
- Wealth Long-Term Net Inflows5%
Target 5% · 2026 Annualized 12%7 Points Above Target ▲
Segment and KPI Data
Revenue by Segment
- Global Banking & Markets$13.5 BShare 72.0%▲ 32.0% YoY
Equities ▲ 72%
- Asset & Wealth Management$5.05 BShare 27.0%▲ 14.0% YoY
Management fees ▲ 22%
- Platform Solutions$170 MShare 0.9%▼ 72.0% YoY
Apple Card markdowns
Key Metrics
Investment Banking Fees
$3.22 B
▲ 21.0% YoYPress Release
Advisory Net Revenues
$1.65 B
▲ 18.0% YoYPress Release
FICC Net Revenues
$3.47 B
▼ 1.0% YoYPress Release
Management and Other Fees
$3.59 B
▲ 22.0% YoYPress Release
Assets Under Supervision
$4.10 T
▲ 18.7% YoYPress Release
CET1 Ratio (Standardized)
12.4%
Press Release
Share Repurchases
$3.00 B
Press Release
Book Value Per Share
$373
▲ 5.0% YoYPress Release
Shares are computed over the segment total: $18.7 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“Against the backdrop of a complicated operating environment, our clients continued to turn to Goldman Sachs for our world-class advice, execution and financing capabilities, resulting in our second highest quarterly net revenues and record year-to-date net revenues. I am confident our market-leading franchises, deep relationships and continued investments will help drive long-term earnings growth.”
- Second Highest Quarterly Net Revenues
- Record Year-to-date Net Revenues
- Long-term Earnings Growth
Summary and Review
Summary
Goldman Sachs reported third-quarter net revenues of $18.68 billion and GAAP diluted EPS of $17.01. Revenue beat the $16.83 billion market expectation by 11.0%. EPS came in 32.3% above the $12.86 estimate. The firm gives no numeric guidance, so the guidance gate was not counted; both remaining gates are open. Net revenues grew 23.0% from the same quarter last year. The engine was Equities, where net revenues rose 72%.
The stock opened sharply higher and touched $930.88 intraday, 4.1% above the prior close. It then closed the session 0.23% lower at $891.91. The market did not read this report as a growth story. EPS fell 19% from $20.98 in the second quarter. The investment banking fee backlog also declined from the end of the second quarter. Apple Card markdowns cut Platform Solutions revenue to $170 million.
Our overall view is positive: score 82, verdict buy. The quarter came in well above expectations on both headline measures. Return on equity was 18.7%, 4.5 points above 14.2% a year earlier. According to the earnings call, EPS would have been about $18 without a roughly $450 million accelerated charitable contribution. Our reservations are the shrinking backlog, CET1 falling to 12.4% and higher credit provisions. That keeps the score in the lower part of the band.
Full Review
The equities desk carried the quarter.
Equities net revenues rose 72% year over year to $6.44 billion. That is 34% of total net revenues. Equities financing grew 96% to $3.37 billion, driven by prime and portfolio financing. Equities intermediation rose 52%, helped by derivatives. Fixed income, currency and commodities (FICC) slipped 1% to $3.47 billion. FICC intermediation was weak in mortgages and credit products. Net revenues from Asia nearly doubled to $3.80 billion. According to the earnings call, Solomon stressed that financing has become a larger and more durable part of the markets business. That suggests revenue no longer depends only on trading volumes. Still, financing revenue grew only about 3% from the second quarter. The desk is now growing from a high base.
Investment banking strong, backlog weaker.
Investment banking fees rose 21% year over year to $3.22 billion. Advisory grew 18% to $1.65 billion on higher completed M&A volumes. Equity underwriting rose 43% on IPOs and secondary offerings, and debt underwriting rose 15%. Sequentially, the picture is cooler. Total fees fell 5% and equity underwriting fell 32% from the second quarter. More importantly, the press release says the fee backlog decreased from the end of the second quarter. It also slipped slightly versus the end of 2025. Solomon described the capital markets environment as top quartile on the call. But a lower backlog makes it harder for fourth-quarter fees to top this quarter. Much of the market's caution at the close traces back to this line.
Asset management is turning into fee income.
Asset & Wealth Management net revenues grew 14% year over year to $5.05 billion. Management and other fees rose 22% to $3.59 billion. Incentive fees jumped from $76 million to $587 million on fund distributions. Assets under supervision reached $4.10 trillion, up 18.7% year over year. Long-term net inflows were $97 billion in the quarter. Alternative investments rose to $491 billion. According to the earnings call, the full-year alternatives fundraising expectation was raised to roughly $150 billion. On the other hand, Investments revenue fell 85% and private banking and lending fell 22%. The segment's quality is improving, but volatile lines still swing results. As the fee share rises, earnings become less sensitive to the cycle.
Expenses, credit and capital.
Operating expenses rose 20% to $11.31 billion, with transaction-based expenses up 54%. Other expenses climbed to $1.10 billion, including contributions to Goldman Sachs Gives. The efficiency ratio was 59.4% for the first nine months, versus 62.1% a year earlier. Provision for credit losses was $368 million, above $339 million last year. This time the driver was impairments on wholesale loans. The standardized CET1 ratio fell to 12.4%, from 12.9% in the second quarter and 14.4% a year ago. The firm made $3.00 billion of share repurchases and paid $1.49 billion in dividends. Buybacks covered 2.9 million shares at an average $1,048.73. The board declared a quarterly dividend of $5.00. Platform Solutions revenue fell 72% on Apple Card markdowns.
Threshold: CET1 buffer and financing revenue.
The one number that could change the story is the CET1 ratio. According to the earnings call, it sits about 1 point above the 11.4% requirement. That buffer is funding both $3 billion of quarterly buybacks and balance sheet growth. If the ratio drops below 12%, either buybacks slow or financing growth is reined in. Both would hit this quarter's engine directly. If it holds at 12.4% or above, the buyback pace can likely be sustained. The second gauge is equities financing revenue. At $3.37 billion, it was the steadiest part of revenue. If it stays above $3 billion in the fourth quarter, the case for a durable earnings base strengthens. If it falls below, the market may price the third quarter as a peak. Our guide explains how to read earnings day.
Looking Ahead
Strengths and Risks
6 Strengths · 6 RisksStrengths
6- Net revenues of $18.68 billion beat expectations by 11.0%, and EPS of $17.01 beat by 32.3%.
- Equities net revenues grew 72% to $6.44 billionFinancing rose 96% and forms a more durable revenue layer.
- Assets under supervision reached $4.10 trillion, up 18.7% year over year, with $97 billion of long-term net inflows.
- Management and other fees rose 22% to $3.59 billion, making segment revenue more predictable.
- Return on equity of 18.7% was 4.5 points above 14.2% in the same quarter last year.
- The firm returned $4.49 billion to shareholders through $3.00 billion of buybacks and $1.49 billion of dividends.
Risks
6- The investment banking fee backlog declined from the end of the second quarter and slipped slightly below year-end 2025.
- EPS fell 19% from $20.98 in the second quarterEquity underwriting revenue dropped 32% sequentially.
- The CET1 ratio fell to 12.4%, from 12.9% in the second quarter and 14.4% a year earlier.
- Provision for credit losses rose to $368 million, driven this time by impairments on wholesale loans.
- Platform Solutions revenue fell 72% to $170 million on markdowns tied to the Apple Card portfolio.
- The firm gives no numeric guidance, and another meaningful charitable contribution is expected in the fourth quarter.
What to Watch
4- December 2, 2026Record date for the $5.00 quarterly dividend per share.
- December 30, 2026Payment date for the $5.00 quarterly dividend.
- End of 2026Whether alternatives fundraising reaches the roughly $150 billion full-year expectation.
- ~January 2027Fourth-quarter results will show the backlog, incentive fees and the charitable contribution charge.
Upcoming Earnings
To Understand This