Goldman Sachs Q3 profits surge as dealmaking tops expectations
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The news: Goldman Sachs posted record revenue for the third-quarter, notching the group’s largest Q3 haul in the bank’s history, and its third highest overall for all quarters.
The numbers: Goldman reported net revenues of USD15.18 billion ($23.50 billion) and net earnings of USD4.1 billion for the third quarter ended September 30, 2025. Net revenues were USD44.83 billion and net earnings were USD12.56 billion for the first nine months of 2025.
Diluted earnings per common share was USD12.25 and annualised return on average common shareholders’ equity was 14.2% for the third quarter of 2025.
In Goldman’s investment banking division, the firm raked in USD2.66 billion in fees, ahead of the USD2.18 billion forecast by Bloomberg analysts. Investment-banking fees included USD1.4 billion from its advisory unit, USD465 million from equity underwriting and USD788 million from debt underwriting.
The context: A slate of large mergers and acquisitions and public offerings has boosted dealmaking across US banks after a period of trade instability softened deal appetite. During the third quarter, global deal values topped USD1 trillion for the second time on record, Bloomberg data shows.
Chairman and CEO of the bank, David Solomon said: “We know that 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.”
Both Wells Fargo and Citi also topped profits estimates in Q3, indicating a resilience across consumers’ financial health.
Wells Fargo reported net income of USD5.6 billion on revenue of USD21.4 billion, ahead of expectations, as the bank posted its second set of earnings since the removal of its punitive asset cap in June. The US bank’s investment banking revenue rose 32% year on year to USD554 million.
Citi’s net income rose 16% year on year to USD3.8 billion, while revenue rose to USD22.1 billion, in line with expectations. Revenues from Citi’s markets division grew 15% year on year to USD5.6 billion.
The sources: Goldman Sachs earnings, Wells Fargo earnings, Citi earnings, Bloomberg
