Goldman Sachs reported third-quarter profit of $5.1 billion on Tuesday, up 33% from a year earlier. Chief executive David Solomon said there is no succession transition or timeline underway at the bank. Revenue rose 23% to $18.7 billion.
Profit was down 20% from the second quarter, when business conditions were especially robust. Diluted earnings per share were $17.01, against $12.25 a year earlier and $20.98 in the second quarter of 2026. Revenue compared with analyst expectations of $16.4 billion.
EQUITIES AND DEALMAKING DRIVE THE QUARTER
Net revenue in equities trading rose 72% from the year-ago level. Fixed income, currency and commodities revenues were "essentially unchanged", the firm said, as at rival JPMorgan Chase, which reported earlier the same day.
Investment banking fees also rose, with Goldman citing increases in completed mergers and an elevated level of initial public and secondary equity offerings. Solomon described the third-quarter backdrop as "a complicated operating environment" in a statement accompanying the results.
CHARGES, PROVISIONS AND NINE-MONTH RETURNS
The quarter included charitable contributions that reduced earnings by approximately $1 per share. Provisions for credit losses were $368 million, higher than expected, largely reflecting impairments on wholesale loans.
Markdowns tied to the Apple Card loan portfolio contributed to a 72% decline in revenue from the Platform Solutions business. Annualised return on average common shareholders' equity was 18.7% for the third quarter.
For the first nine months of 2026, net revenues were $56.24 billion and net earnings were $17.55 billion. Earnings per share were $55.56, compared with $37.33 a year earlier, and annualised return on equity was 20.7%.
SOLOMON ADDRESSES SUCCESSION REPORTS
The Wall Street Journal reported on 28 September that Goldman's board had discussed a plan for Solomon to step down as CEO and be replaced by Chief Operating Officer John Waldron around the end of 2027 or in 2028. A Goldman spokesman said in response that there was no timetable for a transition.
He added: "The board and I are singularly focused on our strategy to grow the firm and continue to serve our clients with excellence." Solomon said he is "really enjoying the job" and that the team is excited about the coming years and how it can "really accelerate the earnings potential of the firm".
MARKET REACTION AND THE WEEK AHEAD
Goldman shares rose 0.2% in early afternoon trading, with intraday moves ranging from roughly -0.2% to +1.4% across prints. Among peers, JPMorgan missed forecasts, Citigroup beat and Wells Fargo fell 3%, while the S&P 500 closed nearly flat, about 13 points below its record.
Attention turns to US September CPI data. Bank of America, Morgan Stanley, BlackRock and ASML report earnings before the open.
Related: Goldman Sachs' Solomon said no active succession timetable was underway