Goldman Sachs Group Inc. (NYSE:GS) reported third-quarter 2026 earnings and revenue above Wall Street expectations on Tuesday, supported by strong equities trading activity and increased investment banking fees.
The US investment bank posted adjusted earnings per share of $17.01, exceeding analysts’ consensus forecast of $13.09 by $3.92. Revenue rose 23% year on year to $18.68 billion, ahead of market expectations of $16.86 billion and compared with $15.19 billion in the third quarter of 2025.
Goldman Sachs shares gained 2.9% in pre-market trading following the results.
The performance was driven primarily by the Global Banking & Markets division, where revenue increased 32% to $13.46 billion. Equities trading was a major contributor, with revenue rising 72% compared with the previous year.
Goldman Sachs reported net revenue of $13.46 billion in its Global Banking & Markets division, representing a 32% increase from the corresponding quarter last year.
The division benefited from stronger equities trading and higher investment banking activity, including merger and acquisition advisory services and securities underwriting.
In its earnings release, Goldman Sachs stated: “The increase compared with the third quarter of 2025 primarily reflected significantly higher net revenues in Global Banking & Markets.”
Equities revenue reached $6.44 billion, an increase of 72% year on year.
The bank attributed the growth primarily to significantly higher net revenues from equities financing and derivatives.
These activities involve providing financing solutions and trading financial instruments linked to equity markets, including products used by institutional investors to manage exposure and risk.
The substantial increase in equities revenue was a central factor behind the bank’s stronger quarterly results.
Meanwhile, Fixed Income, Currency and Commodities (FICC) revenue remained broadly unchanged at $3.47 billion.
Investment banking fees rose 21% year on year to $3.22 billion, reflecting higher activity across advisory and underwriting services.
Goldman Sachs reported increased merger and acquisition volumes, which supported growth in advisory revenue.
The bank also benefited from stronger equity and debt underwriting activity.
Investment banking advisory services generate fees from transactions such as mergers, acquisitions and corporate restructurings, while underwriting involves helping companies raise capital through securities issuance.
The increase in fees indicates stronger transaction activity compared with the third quarter of 2025.
Combined with the expansion in equities trading, the investment banking performance helped drive the 32% revenue increase in Global Banking & Markets.
Goldman Sachs’ Asset & Wealth Management division generated net revenue of $5.05 billion, up 14% from the prior-year quarter.
The increase was supported by higher management fees and growth in assets under supervision.
Management fees are generally linked to the value of assets managed or supervised by the firm, meaning increases in asset levels can contribute to higher recurring revenue.
The division provides investment management and wealth advisory services to institutional and individual clients.
Its revenue growth added to the bank’s overall quarterly performance, although Global Banking & Markets remained the main source of the year-on-year increase.
Platform Solutions reported revenue of $170 million, representing a 72% decline compared with the third quarter of 2025.
Goldman Sachs attributed the decrease primarily to net markdowns associated with the Apple Card loan portfolio.
These adjustments reduced the division’s reported revenue during the quarter.
The decline contrasted with the stronger performance recorded in the bank’s trading, investment banking and asset management operations.
Goldman Sachs did not provide additional details in the announcement about the future financial impact of the Apple Card portfolio adjustments.
Goldman Sachs reported operating expenses of $11.31 billion for the third quarter, an increase of 20% from the previous year.
The bank attributed the rise to higher transaction-based expenses and increased employee compensation linked to stronger operating performance.
Transaction-related expenses can rise alongside trading and investment banking activity, while compensation costs may increase when business results improve.
Despite higher expenses, Goldman Sachs reported an improvement in its efficiency ratio for the first nine months of 2026.
The ratio declined to 59.4%, compared with 62.1% during the equivalent period in 2025.
A lower efficiency ratio indicates that a smaller proportion of revenue is being absorbed by operating expenses.
The improvement suggests that revenue growth outpaced the increase in costs over the nine-month period.
Goldman Sachs’ board of directors declared a quarterly dividend of $5.00 per share.
The announcement accompanied a quarter in which the bank exceeded earnings expectations and reported stronger revenue across its principal trading and investment banking activities.
The dividend declaration provides shareholders with a further capital return, although the company did not announce additional changes to its capital distribution plans in the information provided.
Goldman Sachs’ third-quarter results demonstrated the contribution of equities trading and investment banking to the firm’s earnings growth.
Revenue of $18.68 billion exceeded analyst expectations by $1.82 billion, while adjusted earnings per share surpassed forecasts by $3.92.
The 72% increase in equities revenue and 21% rise in investment banking fees supported the expansion of Global Banking & Markets.
Asset & Wealth Management also contributed higher revenue, while Platform Solutions remained under pressure from adjustments related to the Apple Card loan portfolio.
Although operating expenses increased, the bank’s nine-month efficiency ratio improved compared with the previous year.
For investors, the results highlight Goldman Sachs’ exposure to capital markets activity, with future performance likely to remain sensitive to trading conditions, corporate transaction volumes and demand for investment banking services.
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