Goldman Sachs (GS) Delivers Solid Q3 2026 Results with +39% EPS Growth
Key Takeaways
- Goldman Sachs reported third-quarter 2026 diluted earnings per share (EPS) of $17.01, up 39% from $12.25 a year earlier and well above analyst expectations.
- Net revenues reached $18.68 billion, a 23% year-over-year increase and the second-highest quarterly total in the firm's history.
- Equities trading revenue surged 72% to $6.44 billion, driving strength in the Global Banking & Markets division.
- Investment banking fees rose 21% to $3.22 billion, with advisory revenue setting a quarterly record of $1.65 billion.
- Operating expenses climbed 20% to $11.31 billion, while the provision for credit losses increased to $368 million.
- Goldman declared a quarterly dividend of $5.00 per share, payable December 30, 2026.
Earnings Context and Why It Matters
Goldman Sachs Group, Inc. remains one of the largest players in global investment banking, so its quarterly updates serve as a useful gauge for capital-markets health. Ahead of this report, CEO David Solomon had pointed to softer fixed-income trading and rising non-compensation costs, which helped push GS shares lower. I was interested to see whether equities and advisory strength could offset those pressures. The results came in ahead of forecasts, offering a clearer picture of how trading and deal activity are holding up even as Treasury yields climb and rate expectations shift.
Reported Results
For the third quarter ended September 30, 2026, GS posted net revenues of $18.68 billion, up 23% from a year ago, and net earnings of $5.29 billion, up 29%. Diluted EPS reached $17.01, a 39% increase from $12.25 and well above the range of consensus estimates around $13.09 to $13.50. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Global Banking & Markets revenue climbed 32% to $13.46 billion, led by a 72% rise in equities revenue to $6.44 billion. Investment banking fees increased 21% to $3.22 billion, including a record $1.65 billion in advisory revenue. Fixed Income, Currencies, and Commodities revenue stayed essentially flat at $3.47 billion. Asset & Wealth Management revenue grew 14% to $5.05 billion, with assets under supervision hitting a new high of $4.10 trillion. Platform Solutions revenue dropped 72% to $170 million due to markdowns on the Apple Card portfolio.
Operating expenses rose 20% to $11.31 billion, and the credit-loss provision moved up to $368 million. The annualized return on average common shareholders’ equity came in at 18.7%.
Market Reaction and Investor Sentiment
Shares of GS moved about 3% higher in pre-market trading after the release. The positive response reflected the sizable earnings beat, especially from equities trading and investment banking. That stood in contrast to the more guarded tone before the report, when worries about FICC softness and expense growth had weighed on the stock. Investors focused on the Global Banking & Markets division posting its second-highest quarterly revenue ever and on the record advisory fees, while noting the offsets from higher expenses, the credit provision increase, and the Platform Solutions drag.
Forward Outlook and Key Factors to Monitor
Looking ahead, the key question is whether GS can maintain momentum in trading and advisory work through the fourth quarter. Management indicated that the investment banking fee backlog fell from the second quarter, suggesting the pace of M&A and IPO activity could ease as borrowing costs remain elevated. Tracking that backlog will help gauge near-term fee revenue.
Expense control will also stay in focus. Compensation and transaction costs rose with higher activity levels, and ongoing technology spending could continue to pressure margins. The goal will be to keep revenue growth ahead of costs and support further efficiency gains.
Credit quality and capital levels merit attention as well. The credit-loss provision increased on wholesale loan issues, and the standardized CET1 ratio slipped to 12.4% from 12.9%. Balancing capital returns, including the $5.00 quarterly dividend and share repurchases, with the current rate environment will remain an important theme.
Exploring AI Tools for Earnings Analysis
I find Tickeron’s AI Screener useful when reviewing quarterly results like these. It lets me apply technical patterns, fundamentals, and AI signals to quickly compare GS against peers in financials and spot any emerging setups. The tool helps surface ideas efficiently without replacing deeper fundamental review.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GS in -1.63% downward trend, sliding for three consecutive days on October 08, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GS declined for three days, in 155 of 280 cases, the price declined further within the following month. The odds of a continued downward trend are 55%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GS as a result. In 40 of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 54%.
The Aroon Indicator for GS entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GS's RSI Indicator exited the oversold zone, 20 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 54 cases where GS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 70%.
The Moving Average Convergence Divergence (MACD) for GS just turned positive on October 12, 2026. Looking at past instances where GS's MACD turned positive, the stock continued to rise in 34 of 47 cases over the following month. The odds of a continued upward trend are 72%.
GS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 4 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 20 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating steady price growth. GS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 64 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.432) is normal, around the industry mean (4.351). P/E Ratio (14.149) is within average values for comparable stocks, (30.023). Projected Growth (PEG Ratio) (1.133) is also within normal values, averaging (0.809). Dividend Yield (0.020) settles around the average of (0.016) among similar stocks. P/S Ratio (4.394) is also within normal values, averaging (16.763).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a provider of investment banking, securities and asset management services
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