European Investor
13 Oct 2026, 15:15
Goldman Sachs Rises 1% as Q3 Profit Jumps on Strong Equities and Investment Banking
Goldman Sachs (NYSE: GS) shares rose about 1% after the bank reported strong third-quarter 2026 results, driven by sharp growth in equities and investment banking.
Third-quarter net revenue reached $18.68 billion, up 23% year over year, while net earnings rose to $5.29 billion. Diluted EPS increased to $17.01 from $12.25 a year earlier, and annualized return on equity was 18.7%.
Global Banking & Markets was the main growth engine, with revenue rising 32% to $13.46 billion. Investment banking fees increased 21% to $3.22 billion, supported by stronger advisory activity, IPOs, secondary offerings and investment-grade debt issuance.
Equities was particularly strong, with revenue surging 72% year over year to $6.44 billion. Goldman cited significantly higher revenue in both equities financing and intermediation, including strength in prime financing, portfolio financing and derivatives. FICC revenue was roughly unchanged at $3.47 billion.
Asset & Wealth Management also performed well, with revenue rising 14% to $5.05 billion, helped by higher management fees and incentive fees. Platform Solutions remained a weak spot, with revenue falling 72% to $170 million, largely due to markdowns tied to the Apple Card loan portfolio.
Operating expenses increased 20% to $11.31 billion, reflecting higher transaction-based costs and compensation, although the year-to-date efficiency ratio improved to 59.4% from 62.1%. The firm also returned $4.49 billion to shareholders during the quarter, including $3.0 billion of share repurchases and $1.49 billion of dividends.
The 1% gain in Goldman Sachs shares appears to reflect the strength of its core capital-markets franchise, particularly equities and investment banking, which more than offset higher expenses and weakness in Platform Solutions.
Goldman Sachs (NYSE: GS) shares rose about 1% after the bank reported strong third-quarter 2026 results, driven by sharp growth in equities and investment banking.
Third-quarter net revenue reached $18.68 billion, up 23% year over year, while net earnings rose to $5.29 billion. Diluted EPS increased to $17.01 from $12.25 a year earlier, and annualized return on equity was 18.7%.
Global Banking & Markets was the main growth engine, with revenue rising 32% to $13.46 billion. Investment banking fees increased 21% to $3.22 billion, supported by stronger advisory activity, IPOs, secondary offerings and investment-grade debt issuance.
Equities was particularly strong, with revenue surging 72% year over year to $6.44 billion. Goldman cited significantly higher revenue in both equities financing and intermediation, including strength in prime financing, portfolio financing and derivatives. FICC revenue was roughly unchanged at $3.47 billion.
Asset & Wealth Management also performed well, with revenue rising 14% to $5.05 billion, helped by higher management fees and incentive fees. Platform Solutions remained a weak spot, with revenue falling 72% to $170 million, largely due to markdowns tied to the Apple Card loan portfolio.
Operating expenses increased 20% to $11.31 billion, reflecting higher transaction-based costs and compensation, although the year-to-date efficiency ratio improved to 59.4% from 62.1%. The firm also returned $4.49 billion to shareholders during the quarter, including $3.0 billion of share repurchases and $1.49 billion of dividends.
The 1% gain in Goldman Sachs shares appears to reflect the strength of its core capital-markets franchise, particularly equities and investment banking, which more than offset higher expenses and weakness in Platform Solutions.
