Results reported October 13, 2026 (before market open) | NYSE: GS | Investment Banking
The Quick Take
Goldman posted a very strong quarter, led by a surge in equities trading. Diluted EPS of $17.01 was up 39% from $12.25 a year ago and well above the roughly $13.65 estimate cited by one calendar provider (estimates vary, so treat the size of the beat as approximate). Net revenue of $18.68B rose 23% year over year and beat the roughly $17.03B consensus. Sequentially, results cooled from an exceptional second quarter (EPS $20.98).
Results
| Metric | Q3 2026 | Comparison |
|---|---|---|
| Net revenues | $18.68B | +23% YoY, -8% QoQ; consensus about $17.03B |
| Net earnings | $5.29B | +29% YoY |
| Diluted EPS | $17.01 | vs $12.25 a year ago and $20.98 in Q2 |
| Annualized ROE | 18.7% | 20.7% for the first nine months |
| Operating expenses | $11.31B | +20% YoY |
| Efficiency ratio (nine months) | 59.4% | vs 62.1% a year earlier |
Segment Revenue
| Segment | Q3 2026 | YoY |
|---|---|---|
| Global Banking & Markets | $13.46B | +32% |
| Investment banking fees | $3.22B | +21% |
| Equities | $6.44B | +72% |
| FICC | $3.47B | -1% |
| Asset & Wealth Management | $5.05B | +14% |
| Platform Solutions | $170M | -72% (Apple Card loan portfolio markdowns) |
Capital and Shareholder Returns
- CET1 ratio: 12.4% standardized (12.9% in Q2) and 13.6% advanced (unchanged).
- Buybacks: $3.00B repurchased, 2.9M shares at an average price of $1,048.73.
- Dividends: $1.49B paid; a $5.00 per share dividend declared for Q4, payable December 30, 2026.
- Book value per share: $372.64, up 1.4% from Q2.
Why the Numbers Matter
Equities revenue of $6.44B, up 72%, did most of the work. That is impressive, but trading is the most volatile line on the income statement, and the 8% sequential decline shows the Q2 peak is not a run rate. Investment banking fees (+21%) and Asset & Wealth Management (+14%) are steadier contributors and both grew solidly. The Platform Solutions line remains a drag, with Apple Card markdowns cutting revenue 72%.
Risks
- Equities trading strength depends on market volatility and volumes, which can fade quickly.
- FICC was flat, so growth is concentrated in one business.
- Expenses grew 20%, nearly matching revenue growth; operating leverage is thinner than the headline suggests.
- CET1 fell 50 bps sequentially as buybacks and growth consumed capital.
- Buybacks at over $1,000 per share leave little valuation cushion if earnings normalize.
Recommendation: HOLD
Goldman is executing at a high level, with a double-digit return on equity and balanced growth across banking, markets and asset management. But at a share price above $1,000, the market already assumes that elevated trading and dealmaking conditions persist. Current holders can stay for the capital return and fee momentum. New buyers would be better served waiting for a pullback or evidence that revenue holds up outside equities.
This is educational analysis, not personalized investment advice. Do your own research before investing.
Sources: Goldman Sachs Q3 2026 earnings results (SEC Form 8-K); 24/7 Wall St. earnings calendar for consensus estimates. Consensus figures vary by provider and may be stale.
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