Goldman Sachs Crushes Estimates as Equities Trading Hits a Record
Goldman posted one of its biggest beats in years, with record equities trading and advisory fees pushing shares higher even after a 15% slide into the print.
What Happened
Goldman Sachs reported third-quarter 2026 diluted EPS of $17.01, far ahead of a Street consensus that sat in a $13.08–$13.65 range depending on the data provider, on net revenues of $18.68 billion versus estimates clustered between $16.75 billion and $17.42 billion — a beat of more than 10% on the top line. Revenue rose 23% year over year, net earnings climbed 29% to $5.29 billion, and annualized return on equity came in at 18.7% for the quarter (20.7% for the first nine months). Book value per share rose to $372.64.
The headline driver was equities trading, which surged 72% year over year to a record $6.44 billion, while investment banking advisory fees also hit a record $1.65 billion. Asset & Wealth Management revenue rose 14% to $5.05 billion. Goldman returned $4.49 billion to shareholders in the quarter, including $3.00 billion in buybacks (2.9 million shares repurchased at an average price of $1,048.73) and $1.49 billion in dividends; the board declared a $5.00 per-share fourth-quarter dividend payable December 30. The firm’s standardized CET1 ratio eased to 12.4% from 14.3% at the end of 2025, and headcount rose 3% on campus-hire timing. Provision for credit losses was $368 million, mostly from impairments on wholesale loans, and the investment-banking fee backlog ticked down slightly from both the second quarter and year-end 2025.
CEO David Solomon credited the results to client demand for the firm’s “advice, execution, and financing capabilities.” The release included no explicit forward guidance for revenue or earnings, citing standard risks around tariffs, geopolitical conflict, and market volatility. Shares, which had fallen roughly 15% over the prior three months and as much as 22–23% from their 52-week high heading into the print, traded up between about 1% and 3.5% through the morning session.
Analyst Reaction
The print directly answered the two concerns analysts had flagged heading into the quarter. Morningstar’s Sean Dunlop had modeled an 11% sequential decline in FICC (fixed income, currency and commodities) trading revenue, telling Reuters a “slightly softer” number could actually prove more constructive for the stock than Goldman’s own outlook implied; UBS’s Erika Najarian had said investors needed reassurance that capital-markets deal pipelines remained robust. Record equities trading and record advisory fees addressed both points directly, which is the most likely explanation for the stock’s premarket jump. Sell-side price-target updates specifically reacting to today’s print were still being published as of this writing; the most recent full mark on the stock, from HSBC on September 28, was a Hold rating with a $1,007 price target, a level shares were trading meaningfully below even after today’s pop.
Why It Matters
Goldman’s results stand in sharp contrast to JPMorgan Chase’s own mixed Q3 print, reported the same morning — together the two set the tone for the rest of bank earnings season, detailed in our Bank Earnings Season Kicks Off preview. A trading-led beat of this size also matters for the broader market-strategy debate playing out on Wall Street, and lands just two days before a pivotal inflation report that could decide whether the Federal Reserve hikes rates again later this month.
- Goldman Sachs (GS) Earnings Preview: What to Expect From Tuesday’s Q3 Report
- JPMorgan Chase (JPM) Earnings Recap: Profit Climbs Even as EPS and Revenue Miss
- Bank Earnings Season Kicks Off: What to Watch
- GS (Goldman Sachs) Stock Fact Sheet
- Stock Fact Sheets Hub
- Earnings coverage
This article is for informational purposes only and does not constitute investment advice. Analyst estimates, price targets, and market figures are as of the date noted above and subject to change; consult a licensed financial advisor before making investment decisions.
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