Goldman Sachs reported strong earnings for the third quarter for 2025, with figures surpassing analyst forecasts and indicating a significant rebound in capital markets, investment banking, and wealth management. The firm's net revenues for the period reached $15.18 billion, a 20% increase from the prior year's quarter and a new record for the investment bank. Net earnings climbed 37% to $4.1 billion. Diluted earnings per common share stood at $12.25, considerably higher than the $8.40 from the previous year and current consensus estimates.
TL;DR
- Goldman Sachs achieved record third-quarter revenue of $15.18 billion, a 20% year-over-year increase.
- Investment banking fees surged 42% to $2.66 billion, driven by M&A and debt underwriting.
- Asset and wealth management earnings grew 17% to $4.4 billion, boosted by higher fees.
- CEO David Solomon cited a more favorable market climate and strategic execution for the strong results.
A strong resurgence in dealmaking propelled investment banking fees to $2.66 billion, a staggering 42% increase year over year. The firm cited “a significant increase in completed mergers and acquisitions volumes, and in debt underwriting, primarily driven by an increase in leveraged finance activity.” Advisory fees saw a remarkable 60% rise, while trading desks profited from renewed investor interest and portfolio rebalancing. Equities trading revenue rose 7% to $3.74 billion as investors embraced higher risk in response to AI-driven market highs and major shifts in U.S. Economic policy under President Donald Trump.
Asset & wealth growth
Goldman's asset and wealth management arm posted $4.4 billion in earnings, a 17% increase compared to the same period last year, thanks to elevated management fees and a significant boost in private banking and lending profits. This expansion stemmed from increased average assets under management and a singular interest payment received on a loan that had previously been devalued.
“This quarter’s results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment,” chairman and CEO David Solomon wrote in the earnings release. He added that the bank knows “conditions can change quickly, and so we remain focused on strong risk management. Longer term, we are prioritizing the need to operate more efficiently to seamlessly deliver the firm to our clients helped by new AI technologies.”
Shareholder returns, balance sheet
The annualized return on average common shareholders’ equity was 14.2%, up from prior periods and demonstrating healthy profitability. Book value per share rose 1.2% during the quarter, reaching $353.79, and 5.1% over the first nine months of the year.
Shares of Goldman Sachs were down slightly in premarket trading, with broader investor sentiment remaining cautious amid muted sector-wide reactions to positive earnings surprises. The stock is up more than 36% year to date.
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