Goldman Sachs quarterly profit rises on equities strength

Goldman Sachs group

13/10/2026 12:25

    * Equities revenue jumps 72% in third quarter 
    * Investment banking fee rises 21% despite broader M&A
slowdown 
    * Goldman shares have gained 1.7% so far in 2026

    By Saeed Azhar and Pritam Biswas
       Oct 13 (Reuters) - Goldman Sachs  GS.N  on Tuesday
posted a higher third-quarter profit as dealmaking remained
steady and volatile markets tied to the Middle East conflict
boosted the Wall Street giant's equities revenue.
    US equity markets were volatile during the quarter, driven
by the Federal Reserve's September interest-rate hike, rising
fuel costs and a selloff in chip stocks. Investors aggressively
reshuffled portfolios, resulting in higher revenue for the
trading desks of banks. 
    The equities business posted a 72% jump in quarterly revenue
to $6.44 billion. The fixed income, currency and commodities
business revenue, however, came in at $3.47 billion, down 1%
from a year ago. 
    Goldman's FICC business has been volatile this year. Net
revenue surged 32% in the second quarter, but had dropped 10% in
the first quarter when its rates business was ​hit by volatility
from the Iran war.
    CEO David Solomon said the bank was expecting a softer
number from FICC in the third quarter. 
    "Notwithstanding the current complexity and uncertainty in
the world, we remain very well positioned to continue to deliver
for our clients," Solomon said in a statement. 
    Total profit was $5.29 billion, or $17.01 per share, for the
three months ended September 30. That compares with $4.10
billion, or $12.25 per share, a year ago.
    Shares of the investment bank have gained about 1.7% so far
in 2026, underperforming closest peer Morgan Stanley  MS.N  and
the S&P 500  .SPX . 
    INVESTMENT BANKING HOLDS 
     Goldman's investment banking division navigated a brief
slowdown in dealmaking as M&A activity in the third quarter fell
41% from the prior three months to $993 billion, falling below
$1 trillion for the first time since the second quarter of 2025,
LSEG data showed. 
    Investment banking fees rose 21% from a year ago to $3.22
billion. Goldman defied the broader market slowdown through
higher debt and equity underwriting, alongside an 18% jump in
advisory revenues.
    The investment bank acted as joint lead bookrunner for
Intel's  INTC.O  $23 billion equity offering and global
coordinator for SK Hynix's  000660.KS  $26.5 billion US
offering.
    It also advised the New York Yankees on a $2.6 billion
financing deal with Apollo Sports Capital affiliates and Nvidia
 NVDA.O  on its $3.5 billion investment in MediaTek  2454.TW .
    On a sequential basis, owing to significant activity in the
second quarter, investment banking fees dropped 5%.   
     
    STRESS-FREE PRIVATE CREDIT 
    Goldman Sachs' private credit fund said in September
investor requests to pull money slowed further in the
third-quarter tender offer, keeping the number under the
threshold 5% cap for the second straight quarter at a time when
other private credit players have been facing redemption
requests. 
    Private credit firms are facing pressure from investors
seeking to pull their capital, driven by concerns that
artificial intelligence could disrupt software companies in
their portfolio.
    However, withdrawal requests at major funds have slowed in
the third quarter as asset managers clear backlogs and investor
sentiment rebounds.
    The asset and wealth management division, which houses the
bank's private credit fund, reported a 14% jump in its revenue,
marking another strong quarter. That helped total revenue rise
23% to $18.68 billion. 
    The bank has expanded its asset and wealth management
business in recent years to generate steadier earnings and
reduce reliance on its volatile trading and investment banking
units.

    (Reporting by Saeed Azhar in New York and Pritam Biswas in
Bengaluru; Editing by Arun Koyyur)
 ((mailto:Pritam.Biswas@thomsonreuters.com;))