The Goldman Sachs Group, Inc.’s GS third-quarter 2025 adjusted earnings per share of $12.25 surpassed the Zacks Consensus Estimate of $11.11 per share. This compares favorably with $8.40 in the year-ago quarter.
Shares of the company fell 2.2% in the pre-market trading session after the results.
The volatile market lifted Goldman's net revenues in Equities by 7% year over year to $3.7 billion. Fixed income, currency and commodities trading revenues rose 17% year over year to $3.5 billion. A solid resurgence in dealmaking activity led investment banking (IB) fees to jump 42% year over year to $2.7 billion in the quarter. Advisory fees saw a remarkable 60% year-over-year increase in the third quarter.
Goldman’s overall results benefited from solid revenue growth in the Global Banking & Markets and Asset & Wealth Management divisions. Yet, increased expenses were concerning.
Net earnings (GAAP basis) of $4.1 billion increased 37% from the prior-year quarter.
GS’s Revenues & Expenses Increase, Provisions Decline
Net revenues rose 20% to $15.2 billion for the quarter from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 7.4%.
Total operating expenses increased 14% year over year to $9.5 billion.
Provision for credit losses was $339 million, down 15% from the prior-year quarter.
Goldman’s Quarterly Segmental Performance Solid
The Asset & Wealth Management division generated revenues of $4.4 billion in the reported quarter, up 17% year over year. The increase reflects higher Management and other fees and significantly higher net revenues in Private banking and lending.
Firmwide assets under supervision were $3.5 trillion, up 11.2% from the prior-year quarter.
The Global Banking & Markets division recorded revenues of $10.1 billion, which increased 18% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing), and strong performances in Fixed income, currency and commodities.
The Platform Solutions division’s revenues were $670 million, surging 71% year over year.
GS’s Capital Ratio Declines
As of Sept. 30, 2025, the standardized Common Equity Tier 1 capital ratio was 14.4%, down from 15.5% as of Sept. 30, 2024.
The company’s supplementary leverage ratio was 5.2%, down from 5.5% in the year-ago quarter.
Goldman’s Capital Distribution Update
In the reported quarter, GS returned $3.25 billion in capital to common shareholders. This included $2 billion in share repurchases and common stock dividends of $1.3 billion.
On Oct. 13, 2025, the company declared a dividend of $4 per common share to be paid on Dec. 30, 2025, to common shareholders of record on Dec. 2, 2025.
Our View on GS
Goldman’s third-quarter 2025 results highlight a strong quarter marked by resilient revenues, improved profitability, and disciplined expense management. Its focus on IB and trading businesses, along with strong deal-making pipelines, will likely support the top line. Active client engagement and a solid position in announced and completed mergers and acquisitions globally are likely to act as tailwinds in the upcoming period. However, a rise in expenses poses near-term concerns.
The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise
The Goldman Sachs Group, Inc. price-consensus-eps-surprise-chart | The Goldman Sachs Group, Inc. Quote
Currently, Goldman carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other Investment Banks
Raymond James Financial Inc. RJF is slated to report quarterly results on Oct. 28. The Zacks Consensus Estimate for RJF’s fiscal third-quarter 2025 earnings has been revised upward to $2.70 per share over the past seven days. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
LPL Financial Holdings Inc. LPLA is expected to report quarterly results on Oct. 30. The Zacks Consensus Estimate for LPLA’s third-quarter 2025 earnings has been revised downward to $4.47 per share over the past seven days.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
