Goldman Sachs Reports Third-Quarter 2026 Results, Revenue of $18.7 Billion

Goldman Sachs Group (NYSE: GS ) held its third-quarter earnings conference call on Tuesday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

01. 5 trillion in announced transactions, and saw record performance in Investment Banking and Equities. 1 trillion with $97 billion in long-term net inflows. Goldman Sachs announced acquisitions of NEOS and LCN Capital Partners to enhance its Asset and Wealth Management offerings.

The company highlighted its strategic focus on financing AI infrastructure, addressing the need for significant capital investment in data centers. Management expressed confidence in the firm's growth trajectory and strategic positioning, despite geopolitical and economic uncertainties. 5 billion in dividends during the quarter. Full Transcript Kayte, Operator Good morning.

My name is Kayte and I will be your conference facilitator today. I would like to welcome everyone to The Goldman Sachs Group third quarter 2026 earnings conference call on behalf of Goldman Sachs Group. I will begin the call with the following disclaimer. The earnings presentation can be found on the Investor Relations page of the Goldman Sachs website and contains information on forward-looking statements and non-GAAP measures.

This audiocast is copyrighted material of The Goldman Sachs Group, Inc. and may not be duplicated, reproduced, or rebroadcast without consent. This call is being recorded today, October 13, 2026. I will now turn the call over to Chairman and Chief Executive Officer David Solomon and Chief Financial Officer Denis Coleman.

Thank you, Mr. Solomon. You may begin your conference. David M.

Solomon, Chairman & Chief Executive Officer Thank you, operator. Good morning, everybody. Thank you for joining us. 5%.

Our quarterly results included the impact of an accelerated charitable contribution. 5%, respectively. 4%. While the third quarter began with optimism around a potential resolution of the conflict in the Middle East, renewed geopolitical tensions and continued disruption of energy flows added complexity to the outlook, increasing oil prices, reigniting inflation concerns, and driving bond yields higher.

, and Europe. S. 2%, and a very resilient labor market. In complex environments such as these, clients rely on the advice, execution, and intermediation expertise of Goldman Sachs to navigate uncertainty and advance their most important strategic priorities.

In Global Banking and Markets, we generated the second highest revenues in our history. 5 trillion of announced transactions for the year. We maintained our year-to-date lead over our closest peer of approximately $430 billion, the largest lead we've ever had, as clients turned to us for advice on significant transactions including Huggy Face's $13 billion sale to NVIDIA and Integer Holdings' $6 billion sale to KKR.

As you'll remember, we entered the quarter with our highest backlog in five years, and even with exceptionally strong revenue production in the quarter, our backlog remains very robust, reflecting the strength and breadth of client engagement across our leading investment banking franchise. In Equities, we delivered our second-best performance after last quarter's record results, with strength across both intermediation and financing. In FICC, we remain steadfast in supporting our clients' global risk intermediation needs across asset classes amid sharp moves in rates and increased volatility in commodities.

Importantly, financing activities have become a larger and more durable component of our Markets businesses, representing over 40% of FICC and equities revenues year to date. This progress reflects strong client demand, prudent balance sheet deployment and continued execution against our strategic priorities, including deliberate multiyear investments in Asia, which we highlighted earlier this year as an opportunity to drive further share gains. This dynamic market backdrop has also reinforced the importance of trusted advice and diversified investment solutions for Asset & Wealth Management clients.

Our scaled and durable platform brings together leading investment capabilities across public and private markets and delivers them through deep institutional relationships, our ultra-premier high-net-worth wealth management franchise, and our expanding third-party distribution network. The strength of this platform continues to drive exceptional growth at scale. 6 billion and surpassed $10 billion for the year to date. 1 trillion supported by $97 billion of long-term net inflows, representing our 35th consecutive quarter of inflows.

1 trillion. For 2026, Wealth Management long-term net inflows are annualizing at 12%, well ahead of our 5% target, which underscores the strength of our client relationships built on trust and long-term performance. In Alternatives, we are driving strong growth, with alternative assets under supervision up 26% year over year to a record $491 billion. We continue to see strong momentum in fundraising, with $37 billion raised in the quarter, driving a total of $122 billion in fundraising for the year to date, reflecting investor demand for experienced investment managers.

Considering the strength, we now expect full-year fundraising of roughly $150 billion. Given the sustained levels of investment performance for clients, our leading Asset & Wealth Management business remains very well positioned for continued growth amid attractive secular tailwinds. At the same time, we are also inorganically accelerating growth and building a stronger platform with a better product offering for clients. In August, we announced agreements to acquire NEOS, a market leader in derivative income ETFs with approximately $35 billion in AUM at quarter end, and LCN Capital Partners, a leading triple-net-lease investment manager.

The NEOS acquisition would bring our global active ETF assets under supervision to over $90 billion, establishing Goldman Sachs among the top eight providers by assets under supervision and top six by revenue, while LCN broadens the range of private real estate investment solutions we can offer. Importantly, these acquisitions also bring talented and entrepreneurial teams to Goldman Sachs. We remain focused on opportunities that enhance distribution, deepen investment capabilities and add products to strengthen Asset & Wealth Management.

Our bar for strategic financial and cultural fitness remains very high, and we will continue to allocate capital dynamically and with discipline as we drive growth. All in, our record year-to-date revenues are the result of years of focused execution that have strengthened our market-leading businesses and increased connectivity across the firm as we harness the power of One Goldman Sachs. Importantly, we have created a higher revenue base, with our more durable revenues having more than doubled since 2020 Investor Day and now representing approximately 45% of revenues for the year to date.

The increased durability, coupled with our expense discipline and prudent capital management, enhances the resilience of our earnings and supports higher returns through the cycle, providing Goldman Sachs with an even stronger foundation for growth. Looking forward, though uncertainty persists, corporates and investors recognize that standing still can be a competitive disadvantage. Clients are taking action to modernize operations, secure critical capabilities, and reallocate capital towards their highest-return opportunities.

All of this is driving demand for M&A, capital formation, financing, risk management, and advice, playing directly to the strength of our franchise. An ongoing theme has been the growth in AI infrastructure investment. S. S.

GDP annually. In our conversations with clients, demand for compute significantly exceeds supply at the moment, creating opportunities to help develop financing structures to meet that capacity shortfall. Our differentiated financing, distribution and investing capabilities position us to play a meaningful role in the mobilization of capital and supporting client activity. While we are proud of the privileged position we play in the AI investment cycle, no one knows how the demands for capital and compute will evolve as the broader AI ecosystem matures.

That will only become clearer as technology and markets continue to develop. This uncertainty reinforces the importance of remaining vigilant around the types of activity we finance and how we manage risk. As we support our clients, we are highly selective about the risk we underwrite and the capital we commit, particularly as client financing needs become larger and more complex. Beyond these financial risks, we also recognize the broader concerns around the accelerating pace of AI technology and the unchecked advancement of frontier models.

Like other transformative technologies, AI presents significant opportunities but also significant risks that must be carefully assessed and managed. However, the choice is not between halting progress and moving forward without guardrails. We must enable innovation and also demand responsibility. The experience of the financial services industry has demonstrated the value of rigorous testing, independent review and continuous monitoring, and clear human accountability.

These principles, applied in ways that reflect the unique characteristics of AI, can help build the trust and confidence needed to deploy the technology responsibly at scale. While companies, developers and governments work together to establish appropriate safeguards, all in, we continue to see meaningful opportunities ahead of us. We are incredibly well positioned given our relentless focus on serving our clients while remaining vigilant to emerging risks. In this dynamic environment, our culture of teamwork, excellence and partnership remains a key differentiator that has enabled us to adapt, innovate and execute through a range of environments.

I have never been more confident in our ability to create long-term value for shareholders by making the right investments to grow the firm and generate sustainable earnings growth. With that, I'll turn it over to Denis to walk through our financial results in more detail. Denis Coleman, Chief Financial Officer Thank you, David. Good morning, everyone.

Let's start with our results on page one of the presentation. 5%. 5% for the year to date. 7 billion reached a quarterly record and rose 18% year over year, driven by higher volumes.

For the year to date, we maintained our number one league table position for announced and completed M&A volumes. In equity underwriting, revenues of $666 million rose 43% year over year on strong IPO and secondary offerings. Activity in debt underwriting revenues was $904 million, up 15% year over year, driven primarily by stronger investment-grade activity. Year to date, we ranked number one in equity underwriting, number two in leveraged loans and number three in high-yield debt underwriting.

Even amid very strong accruals in the quarter, our investment banking backlog remains very robust, as strong revenue realizations in advisory were largely offset by solid replenishment in equity underwriting. Year to date, sponsor share of announced M&A remains below historical averages, presenting further upside when activity picks up. FICC net revenues were essentially unchanged year over year. Intermediation revenues declined 7% as lower results in mortgages, rates and credit were largely offset by strong performance in currencies and commodities.

Financing revenues increased 14% to their second highest level, driven by strength in mortgages and structured financing. 4 billion, up 72% year over year, representing our second best quarter, driven by strong performance in both intermediation and financing. Equities intermediation revenues rose 52% to their second highest level, driven by strength in derivatives. Equities financing revenues rose 96% to a record, driven primarily by elevated average prime balances and strong activity.

Across Asia, demand for equities financing continues to exceed available industry capacity, supporting attractive pricing and allowing us to remain selective in deploying resources following significant multiyear investment. Our focus is increasingly on optimizing a diversified global portfolio guided by our risk management framework, client relationships and returns. More broadly, we continue to see structural tailwinds for the growth in tradable assets and the increasing financing needs associated with those assets, which have helped to support sustained industry growth in equities financing over time.

7 billion were a record and represented over 40% of combined FICC and equities revenues. As David mentioned, growth in financing revenues has contributed to greater durability in FICC and equities and is underpinned by a robust risk framework that includes diversified exposures, limits, concentration management and comprehensive stress testing. Let's turn to page five. 1 billion, up 14% year over year.

6 billion, reflecting the impact of higher average assets under supervision. Incentive fees were $587 million. Through our ultra-high-net-worth wealth management franchise, we provided clients early access to a high-growth investment opportunity and recognized incentive fees following the company's IPO. Based on our current outlook, we expect incentive fees to remain elevated in the fourth quarter.

Private banking and lending revenues were $827 million, up 20% sequentially, driven by higher net interest from consumer deposits. Loan balances were up 6% to $51 billion. Investments revenues were $50 million given the timing of certain monetizations following a strong second quarter and certain markdowns. 1 trillion, supported by $97 billion of long-term fee-based net inflows, marking our 35th consecutive quarter of long-term fee-based net inflows.

1 trillion with $47 billion of long-term net inflows. Turning to page seven, alternative assets under supervision totaled $491 billion at the end of the third quarter, driving $860 million in management and other fees, the best performance since our 2020 Investment Day. Gross third-party alternatives fundraising was $37 billion for the quarter and $122 billion for the year to date. 8 billion.

Our total loan portfolio increased 6% from the prior quarter to $276 billion, reflecting broad-based growth across the portfolio. Our provision for credit losses was $368 million. While overall credit quality and portfolio performance have remained strong, our provisions reflected certain impairments across our portfolio as well as overall growth in lending. 3 billion for the quarter.

4%, improving 270 basis points from the prior year and in line with our target. Our year-to-date compensation ratio, net of provisions, was reduced to 30%. We remain committed to paying for performance and delivering operating leverage for shareholders. 2 billion, 30% higher year over year, driven largely by higher transaction-based expenses.