Goldman Sachs profit rises on equities strength

• Equities revenue jumped 72% to $6.44 billion as investors reshuffled portfolios during volatile markets driven by Fed rate hikes, rising fuel costs, and chip stock selloffs
• Investment banking fees rose 21% to $3.22 billion despite M&A activity falling 41% sequentially to $993 billion, below $1 trillion for the first time since Q2 2025
• Asset and wealth management revenue increased 14%, reflecting Goldman's strategic shift to generate steadier earnings and reduce reliance on volatile trading and investment banking units

Goldman Sachs Q3 Profit Rises on Equities Strength

Goldman Sachs reported higher third-quarter profits driven by volatile markets and steady dealmaking activity. Total profit reached $5.29 billion ($17.01 per share), with total revenue rising 23% to $18.68 billion.

Key Performance Metrics

Equities: Revenue surged 72% to $6.44 billion, fueled by volatile U.S. markets driven by the Federal Reserve's September rate hike, rising fuel costs, and a chip stock selloff. Aggressive portfolio reshuffling by investors boosted trading desk revenues.

FICC: Fixed income, currency, and commodities revenue declined 1% to $3.47 billion, reflecting continued volatility after a 32% surge in Q2 and 10% drop in Q1 due to Iran war-related rate volatility.

Investment Banking: Fees rose 21% year-over-year to $3.22 billion despite broader M&A activity falling 41% sequentially to $993 billion—the first sub-$1 trillion quarter since Q2 2025. Goldman benefited from higher debt and equity underwriting, plus 18% growth in advisory revenues. Notable deals included Intel's $23 billion equity offering, SK Hynix's underwriting, and advisory work for the New York Yankees' $2.6 billion financing.

Asset & Wealth Management: Revenue jumped 14%, demonstrating the bank's successful diversification strategy to reduce reliance on volatile trading and investment banking units.

Market Context

CEO David Solomon acknowledged "current complexity and uncertainty" but expressed confidence in client delivery capabilities. The bank's private credit fund saw redemption requests remain below the 5% cap for the second consecutive quarter, contrasting with industry-wide pressure as investors worry about AI disruption to software portfolio companies.