Goldman Sachs beats third quarter estimates on trading strength

Investing.com -- Goldman Sachs Group Inc. (NYSE: GS) reported third-quarter earnings before the open on Tuesday, exceeding analyst expectations, driven by strong performance in its trading and investment banking businesses.

The investment bank posted adjusted earnings per share of $17.01, beating the analyst consensus of $13.09 by $3.92. Revenue reached $18.68 billion, surpassing the estimate of $16.86 billion and marking a 23% increase from $15.19 billion in the third quarter of 2025.

The strong results were primarily driven by significantly higher net revenues in Global Banking & Markets, which rose 32% YoY to $13.46 billion.

Shares rose 2.9% premarket following the earnings release.

Investment banking fees totaled $3.22 billion, up 21% from the prior-year quarter, reflecting higher activity in advisory services due to increased merger and acquisition volumes, along with stronger equity and debt underwriting. Equities revenue surged 72% to $6.44 billion, driven by significantly higher net revenues in equities financing and derivatives. Fixed Income, Currency and Commodities revenue remained essentially flat at $3.47 billion.

Asset & Wealth Management net revenues increased 14% to $5.05 billion, benefiting from higher management fees and the impact of increased assets under supervision. However, Platform Solutions revenue declined 72% to $170 million, primarily due to net markdowns related to the Apple Card loan portfolio.

"The increase compared with the third quarter of 2025 primarily reflected significantly higher net revenues in Global Banking & Markets," the company stated in its earnings release.

Operating expenses rose 20% to $11.31 billion, reflecting higher transaction-based expenses and increased compensation costs tied to improved operating performance. The firm's efficiency ratio improved to 59.4% for the first nine months of 2026 from 62.1% in the prior year period.

The board declared a quarterly dividend of $5.00 per share.

Original Article

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