Net revenues rose 23.0% to $18.68B on equities and banking, while FICC was flat and Platform Solutions fell 8-K. Diluted EPS rose 38.9%, helped by a roughly 7% lower diluted share count and a lighter litigation charge 8-K.
The Goldman Sachs Group, Inc · Q3 2026 · Reported 13 Oct 2026 · US
Key figures
Billion USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Net revenues | 18.68 | 15.18 | +23.0 % |
Pre-tax income | 7.00 | 5.39 | +29.9 % |
Net income | 5.29 | 4.10 | +29.2 % |
Diluted EPS | 17.01 USD/share | 12.25 USD/share | +38.9 % |
Pre-tax margin | 37.5 % | 35.5 % | +2.0 pp |
Net margin | 28.3 % | 27.0 % | +1.4 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Equities and investment banking drove the 23% revenue increase
Net revenues were $18.68B, 23% above a year earlier but 8% below the second quarter 8-K. Global Banking & Markets revenues rose 32% to $13.46B 8-K. Equities rose 72% to $6.44B on higher prime and portfolio financing and derivatives, and investment banking fees rose 21% to $3.22B on advisory and equity underwriting 8-K.
The gains were uneven. FICC was essentially unchanged at $3.47B, with lower intermediation revenues in mortgages and credit offset by financing growth 8-K. Platform Solutions revenues fell 72% to $170M, which the release attributes to net markdowns on the Apple Card loan portfolio, now held for sale 8-K.
Profit grew faster than revenue, helped by a lighter litigation charge
Pre-tax income rose 29.9% to $7.00B, lifting the pre-tax margin to 37.5% from 35.5% a year earlier 8-K34. Net income rose 29.2%. Operating expenses rose 20% to $11.31B, mainly on higher transaction-based and compensation expenses 8-K. The efficiency ratio was 60.5% against 62.3% a year earlier 2.
Net provisions for litigation and regulatory proceedings were $23M, against $131M a year earlier 8-K. In a calculation that excludes that year-earlier charge, the pre-tax margin rose 1.1 points to 37.5% from 36.4%, and pre-tax income rose 26.8%, against 2.0 points and 29.9% as reported 8-K1934. Charitable contributions of about $450M reduced EPS by about $1.00 31.
EPS outran net income because the share count fell
Diluted EPS rose 38.9% to $17.01, from $12.25, against net income growth of 29.2% 8-K. The implied diluted share count fell about 7% 8-K. The firm repurchased $3.00B of shares in the quarter, 2.9 million shares at an average cost of $1,048.73, and paid $1.49B of dividends 8-K.
Annualized ROE was 18.7%, against 14.2% a year earlier and a through-the-cycle target of 14% to 16% 19. CET1 was 12.4% under the Standardized Capital Rules 3.
The mix of the quarter leans on market-linked lines, with weak spots beneath
Net interest income fell 2% to $3.77B as interest expense outgrew interest income 26. In Asset & Wealth Management, incentive fees were $587M against $76M a year earlier and investments revenues were $50M against $342M, reflecting net markdowns in debt investments 8-K. Platform Solutions had a pre-tax loss of $95M against $22M a year earlier 35.
Provision for credit losses was $368M against $339M a year earlier, mainly impairments on wholesale loans 8-K. The investment banking fees backlog fell from the end of the second quarter and decreased slightly from the end of 2025 8-K. Industry-wide M&A, equity and debt underwriting volumes each decreased from the second quarter but remained robust 23.
What to watch next
Whether investment banking fees hold up given the backlog, which decreased from the end of the second quarter 8-K.
Management expects a 2026 effective tax rate of approximately 20%, possibly lower if tax audits are resolved in the fourth quarter 33.
Market-making and banking activity if Middle East, inflation and central bank concerns stay elevated or rise, which management says could hurt net revenues and provisions 24.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.