Goldman Sachs profit rises 29% on equities boom, beating estimates

Goldman Sachs profit beats estimates

Goldman Sachs reported third-quarter profit of $5.29 billion, or $17.01 per share, for the three months ended 30 September, compared with $4.10 billion, or $12.25 per share, a year earlier. Analysts had expected $13.02 per share, according to estimates compiled by LSEG. The bank's shares rose 3.8% before the market opened on Tuesday, 13 October, although they have gained only about 1.7% so far in 2026, trailing rival Morgan Stanley and the S&P 500. Total revenue rose 23% to $18.68 billion, and the Wall Street Journal described it as the bank's second-best quarter ever for revenue.

Equities trading drove the quarter

Equities revenue jumped 72% to $6.44 billion as investors reshuffled portfolios through a volatile quarter. Reuters attributes the volatility to the Federal Reserve's September interest-rate hike, rising fuel costs, a selloff in chip stocks and markets tied to the Middle East conflict. Fixed income, currencies and commodities revenue came in at $3.47 billion, down 1% from a year earlier. That business has swung this year, with net revenue up 32% in the second quarter but down 10% in the first, when the rates business was hit by volatility from the Iran war. Argus Research analyst Stephen Biggar said FICC came in light, a result that was somewhat expected after recent bank conferences.

Investment banking held up

Investment banking fees rose 21% from a year earlier to $3.22 billion, with higher debt and equity underwriting and an 18% jump in advisory revenues. Advisory revenue was a record for the investment bank. Across the market, M&A activity fell 41% from the prior three months to $993 billion, according to LSEG data, dropping below $1 trillion for the first time since the second quarter of 2025. Goldman's chief executive David Solomon framed the results in a statement.

Notwithstanding the current complexity and uncertainty in the world, we remain very well positioned to continue to deliver for our clients.

JPMorgan dealmaking cooled

JPMorgan Chase reported third-quarter net income of $15.3 billion, or $5.57 per share, compared with $14.4 billion, or $5.07 per share, a year earlier. Revenue reached $50.17 billion, up 8% from a year earlier. The bank's shares fell 3% in premarket trading as a slowdown in dealmaking raised concerns about future growth. Investment banking fees fell 8% from the second quarter but rose 14% from a year earlier. Chief executive Jamie Dimon attributed the result to client activity.

Investment banking fees each rose at a mid-teens rate, helped by strong levels of client activity, although activity did moderate somewhat during the quarter.

Lending and trading in a mixed season

Markets revenue climbed 15% from a year earlier, although the Wall Street Journal reported that revenue from trading stocks and bonds fell from the prior quarter, after executives had cautioned that the third quarter would not be as strong as the second for trading. Net interest income excluding markets rose 6% to $24.7 billion, and average loans grew 10% year over year. Dimon said the US economy continued to be fueled by strong business investment and ongoing consumer spending.

Wells Fargo and Citigroup also reported on Tuesday, opening what the Wall Street Journal called a mixed Wall Street earnings season. Citigroup's fixed-income traders had their best third quarter in at least a decade, with desks handling bonds, currencies and commodities reeling in $4.4 billion, beating analysts' expectations.