Third Quarter 2026
Filed Oct 13, 2026Goldman Sachs Reports Third Quarter Earnings Per Common Share of $ 17.01
Third-quarter net revenues rose 23% year over year to $ 18,679 million and diluted EPS rose 39% to $ 17.01, led by 32% growth in Global Banking & Markets and 14% growth in Asset & Wealth Management. Net earnings declined 20% sequentially from $ 6,628 million as total net revenues fell 8% and provision for credit losses rose to $ 368 million from $ 102 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenues, three months ended September 30, 2026GAAP | $18.68B | (8)% | 23% |
| Total net revenues, nine months ended September 30, 2026GAAP | $56.24B | – | 25% |
| Total non-interest revenues, three months ended September 30, 2026GAAP | $14.91B | (9)% | 32% |
| Net interest income, three months ended September 30, 2026GAAP | $3.77B | (5)% | (2)% |
| Investment banking revenue, three months ended September 30, 2026GAAP | $3.23B | (5)% | 22% |
| Investment management revenue, three months ended September 30, 2026GAAP | $4.10B | 21% | 39% |
| Commissions and fees, three months ended September 30, 2026GAAP | $1.51B | (1)% | 36% |
| Market making revenue, three months ended September 30, 2026GAAP | $5.66B | (26)% | 46% |
| Other principal transactions, three months ended September 30, 2026GAAP | $401M | (10)% | (46)% |
| Interest income, three months ended September 30, 2026GAAP | $22.79B | 3% | 9% |
| Interest expense, three months ended September 30, 2026GAAP | $19.02B | 5% | 12% |
| Provision for credit losses, three months ended September 30, 2026GAAP | $368M | 261% | 9% |
| Total operating expenses, three months ended September 30, 2026GAAP | $11.31B | (3)% | 20% |
| Compensation and benefits, three months ended September 30, 2026GAAP | $5.12B | (16)% | 9% |
| Transaction based expenses, three months ended September 30, 2026GAAP | $3.02B | (1)% | 54% |
| Other expenses, three months ended September 30, 2026GAAP | $1.10B | 96% | 24% |
| Pre-tax earnings, three months ended September 30, 2026GAAP | $7.00B | (18)% | 30% |
| Provision for taxes, three months ended September 30, 2026GAAP | $1.71B | (12)% | 32% |
| Net earnings, three months ended September 30, 2026GAAP | $5.29B | (20)% | 29% |
| Net earnings to common, three months ended September 30, 2026GAAP | $5.12B | (20)% | 33% |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 17.01 | (19)% | 39% |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $ 17.24 | (19)% | 39% |
| Net earnings, nine months ended September 30, 2026GAAP | $17.55B | – | 40% |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $ 55.56 | – | 49% |
| Annualized return on average common shareholders' equity, three months ended September 30, 2026GAAP | 18.7% | – | – |
| Annualized return on average common shareholders' equity, nine months ended September 30, 2026GAAP | 20.7% | – | – |
| Efficiency ratio, nine months ended September 30, 2026other | 59.4% | – | – |
| Effective tax rate, nine months ended September 30, 2026GAAP | 20.4% | – | – |
| Book value per common share, September 30, 2026GAAP | $ 372.64 | 1% | 5% |
| Common shareholders' equity, September 30, 2026GAAP | $110.2B | — | 1% |
| Headcount, September 30, 2026other | 47,500 | 3% | (2)% |
| Total assets, September 30, 2026GAAP | $2.18T | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $177B | – | – |
| Loans, September 30, 2026GAAP | $276B | – | – |
| Total liabilities, September 30, 2026GAAP | $2.06T | – | – |
| Deposits, September 30, 2026GAAP | $568B | – | – |
| Unsecured long-term borrowings, September 30, 2026GAAP | $352B | – | – |
| Total assets under supervision, September 30, 2026other | $4.10T | – | – |
| Total AUS net inflows / (outflows), three months ended September 30, 2026other | $83B | – | – |
| Common equity tier 1 capital ratio, standardized capital rules, September 30, 2026other | 12.4 % | – | – |
| Common equity tier 1 capital ratio, advanced capital rules, September 30, 2026other | 13.6 % | – | – |
| Supplementary leverage ratio, September 30, 2026other | 4.3 % | – | – |
| Average daily VaR, three months ended September 30, 2026other | $126M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global Banking & MarketsInvestment banking fees were $ 3.22 billion, 21% higher than the third quarter of 2025. Equities were $ 6.44 billion, 72% higher, while FICC was $ 3.47 billion, essentially unchanged compared with the third quarter of 2025. | $13.46B | (13)% | 32% |
| Asset & Wealth ManagementSignificantly higher Management and other fees and Incentive fees were partially offset by significantly lower net revenues in Investments and Private banking and lending. | $5.05B | 10% | 14% |
| Platform SolutionsThe decrease primarily reflected net markdowns related to the Apple Card loan portfolio, which was transferred to held for sale in the fourth quarter of 2025. | $170M | (23)% | (72)% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the quarter, the firm returned $ 4.49 billion of capital to common shareholders.
- Common share repurchases were $ 3.00 billion, or 2.9 million shares at an average cost of $ 1,048.73.
- Common stock dividends were $ 1.49 billion.
- On October 12, 2026, the Board declared a dividend of $ 5.00 per common share to be paid on December 30, 2026 to common shareholders of record on December 2, 2026.
What drove it
- Global Banking & Markets revenue increased primarily on significantly higher Equities financing and Equities intermediation revenue.
- Advisory revenue reflected an increase in completed mergers and acquisitions volumes; Equity underwriting benefited from higher initial public offerings and secondary offerings; Debt underwriting benefited from significantly higher investment-grade activity.
- Asset & Wealth Management Management and other fees reflected higher average assets under supervision, and Incentive fees were driven by fund distributions.
- Third-quarter provisions primarily reflected impairments related to wholesale loans.
- Operating-expense growth primarily reflected significantly higher transaction based expenses, higher compensation and benefits expenses, and significantly higher charitable contributions to Goldman Sachs Gives.
Concerns
- Investment banking fees backlog decreased compared with the end of the second quarter of 2026 and decreased slightly compared with the end of 2025.
- Platform Solutions revenue was $ 170 million, 72% lower than the third quarter of 2025.
- Investments revenue in Asset & Wealth Management was $ 50 million, down 85% year over year, including net markdowns in debt investments compared with net markups in the prior-year period.
- Provision for credit losses increased to $ 368 million from $ 102 million in the second quarter of 2026.
- Total net revenues declined 8% sequentially and net earnings declined 20% sequentially.
What to watch
- Investment banking fees backlog following decreases versus the end of the second quarter of 2026 and the end of 2025.
- Sustainability of Equities revenue, which was $ 6,441 million and 72% higher year over year but 13% lower sequentially.
- Wholesale-loan impairments and the provision for credit losses after the $ 368 million third-quarter provision.
- The trajectory of Platform Solutions following Apple Card loan portfolio markdowns.
- Assets under supervision, which ended at $ 4,097 billion, and the $ 83 billion of total AUS net inflows / (outflows) during the third quarter.
Balance sheet and cash flow
- Cash and cash equivalents were $ 177 billion at September 30, 2026, compared with $ 187 billion at June 30, 2026.
- Total assets were $ 2,182 billion and total liabilities were $ 2,057 billion at September 30, 2026.
- Deposits were $ 568 billion, compared with $ 558 billion at June 30, 2026.
- Global core liquid assets averaged $ 574 billion for the third quarter of 2026, compared with an average of $ 555 billion for the second quarter of 2026.
- Total assets under supervision were $ 4,097 billion at September 30, 2026, compared with $ 4,041 billion at June 30, 2026 and $ 3,452 billion at September 30, 2025.
Analysis
Goldman Sachs reported a strong third quarter, with total net revenues of $ 18,679 million, up 23% from $ 15,184 million in the third quarter of 2025. Net earnings increased 29% to $ 5,294 million and diluted EPS increased 39% to $ 17.01. For the first nine months of 2026, net revenues were $ 56,244 million, up 25%, while net earnings rose 40% to $ 17,552 million and diluted EPS rose 49% to $ 55.56.
Global Banking & Markets was the principal growth engine, with revenue of $ 13,458 million, up 32% year over year. Equities revenue rose 72% to $ 6,441 million, driven by significantly higher financing and intermediation revenue. Investment banking fees rose 21% to $ 3,224 million, supported by Advisory, Equity underwriting and Debt underwriting. FICC revenue of $ 3,471 million was essentially unchanged year over year, with higher financing offsetting weaker intermediation. The investment banking fees backlog decreased versus both the end of the second quarter of 2026 and, slightly, the end of 2025.
Asset & Wealth Management revenue rose 14% to $ 5,051 million, supported by higher average assets under supervision and fund distributions. Total AUS ended at $ 4,097 billion, with $ 83 billion of total AUS net inflows / (outflows) during the quarter. Platform Solutions remained a material offset, as revenue fell 72% year over year to $ 170 million amid Apple Card loan portfolio markdowns. The segment mix therefore remained concentrated in market-facing and advisory activities during the period.
Expenses grew 20% year over year to $ 11,308 million, with transaction based expenses increasing 54% and compensation and benefits increasing 9%. Despite that cost increase, pre-tax earnings rose 30% to $ 7,003 million. Credit costs deserve attention: provision for credit losses was $ 368 million, versus $ 102 million in the second quarter of 2026, primarily reflecting wholesale-loan impairments. The firm returned $ 4.49 billion of capital to common shareholders, including $ 3.00 billion of repurchases and $ 1.49 billion of dividends, while declaring a $ 5.00 per common share dividend.
Sequentially, activity moderated from the second quarter. Total net revenues declined 8%, Global Banking & Markets revenue declined 13%, and net earnings declined 20% from $ 6,628 million. The balance sheet expanded to $ 2,182 billion of total assets, deposits rose to $ 568 billion, and global core liquid assets averaged $ 574 billion. The filing provided no forward financial guidance, so the near-term focus remains on the fee backlog, market activity across Equities and FICC, credit impairments and the continuation of Asset & Wealth Management inflows.
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax rate guidance
- Prior-outlook section for comparison
- Gross margin
- Operating cash flow
- Free cash flow
- Named executive quotes
- Third-quarter effective tax rate
- Year-over-year comparison for total assets, cash and cash equivalents, loans, deposits, unsecured long-term borrowings, capital ratios and average daily VaR
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.