Goldman Sachs blew past Wall Street's earnings expectations in the third quarter, enjoying growth in all its major businesses amid what it called an "improved market environment."
In the three months that ended on Sept. 30, earnings per share for Goldman rose to $12.25, well above analysts' estimates of $11.10, according to S&P.
Net income for the New York-based financial giant was $4.10 billion, up 37% from the same period last year and beating analysts' forecasts of $3.48 billion, per S&P.
"This quarter's results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment," CEO David Solomon said in a prepared statement. "Across our business, clients continue to turn to us for their most complex and consequential matters."
Revenue for the quarter reached $15.18 billion, a 20% increase from last year and surpassing S&P analysts' predictions of $14.13 billion. In an earnings release, Goldman credited this growth to "higher net revenues across all segments."
One of those segments was Goldman's global banking unit, which took in revenue of $10.12 billion, up 18% from the third quarter of 2024. That included a 42% jump in investment banking fees, which reached $2.66 billion.
Revenue for wealth management rose to $4.40 billion, a 17% increase from the same period last year. Goldman credited this partly to an uptick in management and other fees, which rose 12% from last year.
Even the unit encompassing Goldman's ill-fated foray into consumer banking showed improvement. Net revenues for the segment known as Platform Solutions came out to $670 million, a 71% increase from the same period in 2024.
In the same period last year, the Platform Solutions unit took a hit in connection with its General Motors credit card. Goldman ultimately sold the GM card to Barclays just two years after launching it. The credit card proved to be an expensive misstep — at the end of 2024's third quarter, Goldman reported a $415 million charge in connection to the GM card portfolio.
Amid this year's turbulent political backdrop, Solomon's assessment of the macroeconomic environment has fluctuated from quarter to quarter.
At the start of the year, the CEO told investors he was "optimistic" that the new Donald Trump administration's deregulatory agenda would provide a "tailwind" for Goldman's businesses. But in April, after Trump unveiled steep tariffs against almost 90 countries, Solomon lamented the uncertainty around trade policy and said the risk of a recession was increasing.
In the two quarters since then, Goldman has enjoyed robust growth in its bottom line — its trading revenue hit a record level in the second quarter — and Solomon has returned to his sunnier outlook. But in Tuesday's earnings announcement, he said Goldman is taking nothing for granted.
"We know that conditions can change quickly and so we remain focused on strong risk management," Solomon said in his statement. "Longer term, we are prioritizing the need to operate more efficiently to seamlessly deliver the firm to our clients helped by new AI technologies."
