Recent articles have discussed an acceleration in leadership transition. Can David Solomon address this to clarify his plans?

David Solomon stated he is very pleased with the firm's progress and enjoys his role, along with the leadership team's excitement for future growth. He explicitly clarified that there is no succession transition or timeline underway at Goldman Sachs, and the Board and he are singularly focused on growing the firm and serving clients. “I'm really enjoying the job, but more importantly, as a team, we're super excited about what's in front of us in the coming years and how we can continue to grow the franchise and really accelerate the earnings potential of the firm. So I just want to be clear, there is no succession transition or time line underway at Goldman Sachs.”

How do higher long-end rates affect the pipeline and client discussions? What is the outlook for capital consumption in Q4, especially given the firm's CET1 buffer?

David Solomon noted that while rates moved significantly, a 5% 10-year treasury is not historically alarming and effective capital markets can operate in such an environment. He emphasized the strong underlying U.S. economy, tech super cycle, and regulatory environment as positive factors. He described the current market as a 'top quartile environment' for capital markets activity. Denis Coleman added that the firm has a 100 bps CET1 buffer, generates significant earnings, and feels comfortable with adequate capital for Q4, prioritizing client deployment before shareholder returns. “But I think one of the things that's lost is a historical perspective on-term treasury premium because we've really operated since the financial crisis and a rate in an environment where rates are fundamentally low is a 64-year-old guy, I kind of look back at the last 64 years, and a 5% 10-year treasury doesn't scare me in terms of an operating environment.”

Given concerns about the sustainability of AI CapEx financing, does Goldman Sachs share these concerns, especially with rising rates and unclear returns?

David Solomon acknowledged the significant quantum of financing needed for data center infrastructure and the potential risks of crowding out and pressure on rates. He stated that no one truly knows the future direction but emphasized Goldman Sachs' role as an intermediary, asset manager, and capital provider to make prudent decisions. He highlighted the current strong demand for compute and the certainty of more build-out and financing, while recognizing that a recalibration will eventually occur. “There is going to be a lot of financing to do, and we're going to be in the middle of that. it may be, over time, as the finance needs grow, that there's pressure on rates and that will affect the returns and the viability of certain projects.”

Goldman Sachs (GS) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Sep 2026 (Q3 FY26)· Financials· Oct 13, 2026

Source: earnings call transcript

Executive summary

Goldman Sachs Q3 FY26 — Record Revenues and Strong Capital Markets Performance

Goldman Sachs delivered a very strong quarter, driven by record revenues in Investment Banking advisory and robust performance across Global Banking and Markets, particularly in equities. The firm's Asset & Wealth Management division also achieved record fees and assets under supervision, fueled by consistent net inflows. Management highlighted the increasing durability of its revenue base and its strategic positioning to capitalize on the AI infrastructure investment cycle, while maintaining a disciplined approach to capital allocation and risk management amidst a complex macroeconomic environment.

Highlights

Net revenues reached $18.7 billion, the second highest in the firm's history.
Investment Banking advisory revenues were a record, maintaining the #1 M&A position with $1.5 trillion announced transactions YTD.
Equities net revenues were $6.4 billion, up 72% year-over-year, marking the second best quarter.
Asset & Wealth Management management and other fees increased 22% year-over-year to a record $3.6 billion.
Assets under supervision reached a record $4.1 trillion, supported by $97 billion of long-term net inflows.

Concerns

Provision for credit losses was $368 million, reflecting certain impairments and overall loan growth.
Non-compensation expenses were $6.2 billion, up 30% year-over-year, largely due to higher transaction-based expenses.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year fundraising (Alternatives)	roughly $150 billion medium materiality	FY26 · 2026	High
Incentive fees (Asset & Wealth Management)	remain elevated low materiality	Q4 · 2026	Medium
Effective tax rate	approximately 20% medium materiality	FY26 · 2026	High
Charitable contributions	meaningful contribution low materiality	Q4 · 2026	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Global Banking and Markets Second highest quarterly revenues for the segment. Advisory revenues reached a quarterly record. Equity underwriting driven by strong IPO and secondary offerings. Debt underwriting driven by stronger investment-grade activity. FICC financing revenues reached their second highest level. Equities financing revenues reached a record, driven by elevated average prime balances and strong activity across Asia. Advisory revenues: $1.7BAdvisory revenue growth YoY: 18%Equity underwriting revenues: $666MEquity underwriting revenue growth YoY: 43%Debt underwriting revenues: $904MDebt underwriting revenue growth YoY: 15%FICC net revenues growth YoY: unchangedFICC Intermediation revenues growth: -7%FICC Financing revenues growth: 14%Equities net revenues: $6.4BEquities net revenues growth YoY: 72%Equities Intermediation revenues growth: 52%Equities Financing revenues growth: 96%	$13.5B	—	—	23.5% ROE YTD
Asset & Wealth Management Management and other fees reached a record, reflecting higher average assets under supervision. Incentive fees were recognized following a company's IPO. Private banking and lending revenues driven by higher net interest from consumer deposits. Total AUS reached a record, marking the 35th consecutive quarter of long-term fee-based net inflows. Wealth Management long-term net inflows annualizing at 12%, well ahead of the 5% target. Management and other fees: $3.6BManagement and other fees growth YoY: 22%Incentive fees: $587MPrivate banking and lending revenues: $827MPrivate banking and lending revenues growth QoQ: 20%Investment revenues: $50MTotal assets under supervision: $4.1TLong-term fee-based net inflows: $97BWealth Management client assets: $2.1TWealth Management long-term net inflows: $47BAlternative assets under supervision: $491BGross third-party alternatives fundraising Q3: $37BGross third-party alternatives fundraising YTD: $122B	$5.1B	14%	—	—

GS operating KPIs by quarter

GS operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	This call Sep 2026 Q3 FY26	Change vs prior quarter
Return on tangible common equity (ROTCE)	—	18% In the first quarter, we generated net revenues of $15.1 billion, earnings per share of $14.12, an ROE of 16.9% and an ROTE of 18%. Source: earnings call transcript	—	15.2% In the third quarter, we generated net revenues of $15.2 billion, earnings per share of $12.25, an ROE of 14.2% and an RoTE of 15.2%. Source: earnings call transcript	17.1% I'm very pleased with our strong performance in the fourth quarter, where we generated earnings per share of $14.01, an ROE of 16% and an ROTE of 17.1%. Source: earnings call transcript	21.3% As a result, we delivered a return on equity of 19.8% and an ROTE of 21.3%. Source: earnings call transcript	25.5% In the quarter, we generated record revenues of $20.3 billion, record earnings per share of $20.98 and an ROE of 23.5% and an ROTE of 25.5%. Source: earnings call transcript	20.5% Earnings per share of $17.01, an ROE of 18.7% and an ROTE of 20.5%. Source: earnings call transcript	-5 pt
Long-term net inflows	$22B Total assets under supervision ended the quarter at a record $3.1 trillion, driven by $70 billion of liquidity products net inflows and $22 billion of long-term fee-based net inflows across asset classes. Source: earnings call transcript	$29B We had $29 billion of long-term net inflows across asset classes, representing our 29th consecutive quarter of long-term fee-based net inflows. Source: earnings call transcript	—	$56B Total assets under supervision ended the quarter at a record $3.5 trillion, up sequentially on $80 billion of net market appreciation as well as $56 billion of long-term net inflows across asset classes, representing our 31st consecutive quarter of long-term fee-based net inflows. Source: earnings call transcript	$66B Total assets under supervision ended the quarter at a record $3.6 trillion, driven by $66 billion of long-term fee-based net inflows across asset classes and $50 billion of liquidity inflows. Source: earnings call transcript	$62B We generated $62 billion long-term fee-based inflows, including $22 billion in wealth management flows. Source: earnings call transcript	$91B Total assets under supervision ended the quarter at a record $4 trillion, supported by $91 billion of long-term net inflows across asset classes, particularly in equity assets. Source: earnings call transcript	$97B Our assets under supervision reached another record of $4.1 trillion, supported by $97 billion of long-term net inflows, representing our 35th consecutive quarter of inflows. Source: earnings call transcript	+6.6%
Common equity tier 1 ratio (CET1) Standardized approach	15% Our common equity Tier 1 ratio was 15% at the end of the fourth quarter under the standardized approach, 130 basis points above our current capital requirement of 13.7%. Source: earnings call transcript	14.8% Our common equity Tier 1 ration was 14.8% at the end of the first quarter under the standardized approach, 110 basis points above our current capital requirement of 13.7%. Source: earnings call transcript	14.5% Our common equity Tier 1 ratio was 14.5% at the end of the second quarter under the standardized approach. Source: earnings call transcript	14.4% Our common equity Tier 1 ratio was 14.4% at the end of the third quarter under the standardized approach. Source: earnings call transcript	14.4% Our common equity Tier 1 ratio was 14.4% at the end of the fourth quarter under the standardized approach. Source: earnings call transcript	12.5% Our common equity Tier 1 ratio was 12.5% at the end of the first quarter under the standardized approach, 110 basis points above our current capital requirement of 11.4%. Source: earnings call transcript	12.9% Common equity Tier 1 ratio was 12.9% at the end of the second quarter under the standardized approach, 150 basis points above our current capital requirement of 11.4%. Source: earnings call transcript	12.4% Our common equity Tier 1 ratio was 12.4% at the end of the third quarter under the standardized approach, 100 basis points above our current capital requirement of 11.4%. Source: earnings call transcript	-0.5 pt
Efficiency ratio	—	60.6% Total quarterly operating expenses were $9.1 billion, resulting in an efficiency ratio of 60.6%. Source: earnings call transcript	—	—	—	60.5% Total quarterly operating expenses were $10.4 billion, resulting in an efficiency ratio of 60.5%. Source: earnings call transcript	—	—	—
Long-term net inflows Wealth Management	—	—	—	—	—	$22B We generated $62 billion long-term fee-based inflows, including $22 billion in wealth management flows. Source: earnings call transcript	$19B We delivered our 34th consecutive quarter of long-term net inflows, including $19 billion in Wealth Management. Source: earnings call transcript	$47B In Wealth Management, $47 billion of long-term net inflows contributed to record client assets of $2.1 trillion. Source: earnings call transcript	+147.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline	Details
NEOS	expansion	Q3 FY26
LCM Capital Partners	expansion	Q3 FY26

Deals & partnerships

NEOS Acquisition of a market leader in derivative income ETFs.

NEOS had approximately $35 billion in AUS at quarter end. The acquisition aims to enhance distribution, deepen investment capabilities, and add products to strengthen Asset & Wealth Management.

LCM Capital Partners Acquisition of a leading triple net lease investment manager.

The acquisition aims to enhance distribution, deepen investment capabilities, and add products to strengthen Asset & Wealth Management.

Risks & headwinds

Geopolitical tensions and energy flows Q3 FY26

Increased oil prices, reigniting inflation concerns and driving bond yields higher.

Mitigation:Clients rely on Goldman Sachs' advice and execution to navigate uncertainty.

Interest rate volatility Near-term

Fed raised rates in September for the first time in 3 years; markets pricing in ~75 bps of additional tightening.

Mitigation:Goldman Sachs is well-positioned to intermediate risk and manage capital effectively; a 5% 10-year treasury is not historically alarming.

AI technology risks Long-term

Broader concerns around the accelerated pace of AI technology and unchecked advancement of frontier models.

Mitigation:Emphasizing rigorous testing, independent review, continuous monitoring, and clear human accountability to build trust and deploy responsibly.

Sponsor share of announced M&A below historical averages Current

Year-to-date sponsor share of announced M&A remains below historical averages.

Mitigation:Sponsors are waiting for better monetization opportunities, using continuation funds to extend life of funds; this activity is expected to come eventually.

Credit impairments Q3 FY26

Provision for credit losses of $368 million, reflecting certain impairments across the portfolio.

Mitigation:Impairments were highly idiosyncratic and non-correlated, not necessarily a signal of broader deterioration; overall credit quality remains strong.

What to watch in Q4 FY26

Incentive fees in Asset & Wealth Management

Q4 FY26

Current $587 million

Target remain elevated

Why it matters

Incentive fees can be volatile and contribute significantly to AWM revenues; their sustained elevation indicates continued strong performance and monetization events.

Based on our current outlook, we expect incentive fees to remain elevated in the fourth quarter.

Find out whether GS delivers this. Inve re-checks your case every morning.

Q&A highlights

Are there any one-time factors in the strong Q3 trading results? How is Goldman Sachs addressing long-term market structure changes like tokenization and AI in its markets business?

Management confirmed no unique short-term factors in Q3 trading. They emphasized continuous investment in technology and infrastructure to support clients, citing past adaptations to electronification in equities. They are actively involved in tokenization, building capabilities like the GS app for digital assets, tokenizing bonds and real estate for clients, and participating in industry initiatives like DTCC's tokenization service. They view these developments as expanding the total addressable market (TAM) and driving efficiency, while remaining vigilant about risks.

“Today, tokenization is obviously an important trend we see it across asset classes. We were publicly supportive of Clarity passing wasn't perfect, but we thought it would be good to give the market more clarity, no contended and ensure investor protection. But in the absence of that, we're already seeing agencies big steps to provide clearer rules to the market and we are engaged in those dialogues.”

asked by Glenn Schorr · answered by David Solomon

2 min read 6 chapters

Detailed narrative

Strong Performance Amidst Geopolitical and Macroeconomic Shifts

Goldman Sachs delivered strong Q3 FY26 results with net revenues of $18.7 billion, driven by robust performance across its core businesses. This was achieved despite renewed geopolitical tensions, increased oil prices, and the Fed's first rate hike in three years. Management noted the underlying U.S. economy remained solid with strong corporate earnings and GDP growth of 2.2%, providing a resilient backdrop for client activity.

Investment Banking Dominance and Robust Backlog

The firm reported its second-highest revenues in Global Banking and Markets, with Investment Banking advisory revenues reaching a record. Goldman Sachs maintained its #1 position in M&A, advising on $1.5 trillion in announced transactions year-to-date, leading its closest peer by $430 billion. Despite strong revenue production, the investment banking backlog remains very robust, reflecting sustained client engagement and strategic activity.

Equities and Financing Businesses Drive Durability

Equities net revenues were the second best in the firm's history, up 72% year-over-year, with strength in both intermediation and financing. Financing activities now represent over 40% of FICC and Equities revenues year-to-date, contributing to a more durable revenue base. This growth is underpinned by strong client demand, prudent balance sheet deployment, and multi-year investments, particularly in Asia.

Record Growth in Asset & Wealth Management

Asset & Wealth Management revenues increased 14% year-over-year to $5.1 billion, with management and other fees reaching a record $3.6 billion, up 22% year-over-year. Assets under supervision hit a new record of $4.1 trillion, supported by $97 billion in long-term net inflows, marking the 35th consecutive quarter of inflows. Wealth Management long-term net inflows are annualizing at 12%, significantly exceeding the 5% target for 2026.

Strategic Acquisitions and AI Investment Cycle

Goldman Sachs announced agreements to acquire NEOS and LCM Capital Partners, aiming to enhance distribution, deepen investment capabilities, and add products in Asset & Wealth Management. The firm is also actively engaged in the AI investment cycle, recognizing the significant capital demands for data center build-out (estimated >$10 trillion through 2032 in the US) and positioning itself to play a meaningful role in financing and advising on these opportunities.

Capital Management and Regulatory Environment

The firm's CET1 ratio stood at 12.4%, 100 basis points above its capital requirement, with $3 billion in stock repurchases and $1.5 billion in dividends paid during the quarter. Management welcomed regulatory developments, including the Federal Reserve's rule finalization for CCAR stress tests and progress on Basel III Endgame and G-SIB re-proposals, advocating for appropriately calibrated requirements aligned with actual risks.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.