- Lead. Goldman Sachs reported third-quarter net revenues of $18.68 billion on October 13, a 23% rise from a year earlier that cleared the Wall Street consensus of $16.83 billion by nearly $2 billion.
- Fact. Diluted EPS hit $17.01, beating the $12.86 consensus by more than 32%; equities revenue rose 72% year-on-year to $6.4 billion, while advisory fees hit a quarterly record of $1.7 billion, up 18%.
- Stake. The results confirm that the volatility and deal activity of 2026 — driven by the Iran war, energy dislocation and a resurgent M&A market — are translating into outsized profits for trading-heavy banks, even as shares fell 1.2% on the day amid guidance uncertainties.
Goldman’s third-quarter report, released before markets opened on October 13, showed results across most divisions running well ahead of last year. Net revenues of $18.68 billion were the firm’s second-highest quarterly total in its history. Return on common equity came in at 18.7%; excluding a $450 million accelerated charitable contribution, Goldman said EPS would have been approximately $18 and ROE approximately 20%, according to the company’s earnings press release.
Equities and advisory drive the beat
Equities revenue of $6.4 billion was the headline figure, up 72% year-on-year. Equities financing revenue alone rose 96%, reflecting demand from hedge funds and other leveraged-finance clients for prime brokerage and structured-product services amid elevated market volatility. Advisory revenue of $1.7 billion set a quarterly record as M&A activity picked up. Debt and equity underwriting also improved, up 15% and 43% respectively. Goldman’s Global Banking and Markets division produced $13.5 billion in revenue, the second-highest quarterly total ever for the segment. FICC revenue was essentially flat year-on-year, with financing revenue up 14% offsetting weakness in rates and currencies.
Wealth management and the AI question
Asset and Wealth Management revenue reached $5.1 billion, up 14%. Management fees hit a record $3.6 billion, with assets under supervision growing to a record $4.1 trillion after $97 billion in long-term net inflows. Alternatives fundraising reached $37 billion in the quarter and $122 billion year to date; the firm raised its full-year target to roughly $150 billion. CEO David Solomon said the firm delivered “very strong performance” and described the AI infrastructure build-out as a major opportunity while adding that Goldman would be “highly selective” about the risk it underwrites in that sector.
Market reaction and what comes next
Shares in Goldman closed at $880.48 on October 16, down 1.21% on the day despite the broad beat, reflecting uncertainty around the outlook for rates and dealmaking heading into the Federal Reserve’s October 27–28 meeting. The mixed reaction echoed the response to JPMorgan’s results last week, where strong consumer revenues also failed to fully offset macro anxiety. Markets are pricing a greater-than-90% probability of a Fed hike at the October meeting, a move that would raise Goldman’s funding costs while potentially supporting net-interest income at other parts of its lending book.