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The Goldman Sachs Group, Inc.’s GS third-quarter 2025 adjusted earnings per share of $12.25 surpassed the Zacks Consensus Estimate of $11.11 per share. This compares favorably with $8.40 in the year-ago quarter.
Shares of the company fell 2.2% in the pre-market trading session after the results.
The volatile market lifted Goldman's net revenues in Equities by 7% year over year to $3.7 billion. Fixed income, currency and commodities trading revenues rose 17% year over year to $3.5 billion. A solid resurgence in dealmaking activity led investment banking (IB) fees to jump 42% year over year to $2.7 billion in the quarter. Advisory fees saw a remarkable 60% year-over-year increase in the third quarter.
Goldman’s overall results benefited from solid revenue growth in the Global Banking & Markets and Asset & Wealth Management divisions. Yet, increased expenses were concerning.
Net earnings (GAAP basis) of $4.1 billion increased 37% from the prior-year quarter.
Net revenues rose 20% to $15.2 billion for the quarter from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 7.4%.
Total operating expenses increased 14% year over year to $9.5 billion.
Provision for credit losses was $339 million, down 15% from the prior-year quarter.
The Asset & Wealth Management division generated revenues of $4.4 billion in the reported quarter, up 17% year over year. The increase reflects higher Management and other fees and significantly higher net revenues in Private banking and lending.
Firmwide assets under supervision were $3.5 trillion, up 11.2% from the prior-year quarter.
The Global Banking & Markets division recorded revenues of $10.1 billion, which increased 18% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing), and strong performances in Fixed income, currency and commodities.
The Platform Solutions division’s revenues were $670 million, surging 71% year over year.
As of Sept. 30, 2025, the standardized Common Equity Tier 1 capital ratio was 14.4%, down from 15.5% as of Sept. 30, 2024.
The company’s supplementary leverage ratio was 5.2%, down from 5.5% in the year-ago quarter.
In the reported quarter, GS returned $3.25 billion in capital to common shareholders. This included $2 billion in share repurchases and common stock dividends of $1.3 billion.
On Oct. 13, 2025, the company declared a dividend of $4 per common share to be paid on Dec. 30, 2025, to common shareholders of record on Dec. 2, 2025.
Goldman’s third-quarter 2025 results highlight a strong quarter marked by resilient revenues, improved profitability, and disciplined expense management. Its focus on IB and trading businesses, along with strong deal-making pipelines, will likely support the top line. Active client engagement and a solid position in announced and completed mergers and acquisitions globally are likely to act as tailwinds in the upcoming period. However, a rise in expenses poses near-term concerns.
The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise
The Goldman Sachs Group, Inc. price-consensus-eps-surprise-chart | The Goldman Sachs Group, Inc. Quote
Currently, Goldman carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Raymond James Financial Inc. RJF is slated to report quarterly results on Oct. 28. The Zacks Consensus Estimate for RJF’s fiscal third-quarter 2025 earnings has been revised upward to $2.70 per share over the past seven days. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
LPL Financial Holdings Inc. LPLA is expected to report quarterly results on Oct. 30. The Zacks Consensus Estimate for LPLA’s third-quarter 2025 earnings has been revised downward to $4.47 per share over the past seven days.
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This article originally published on Zacks Investment Research (zacks.com).
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