Goldman Sachs GS-N on Tuesday posted a higher third-quarter profit as deal-making remained steady and volatile markets tied to the Middle East conflict boosted the Wall Street giant’s equities revenue.
U.S. equity markets were volatile during the quarter, driven by the Federal Reserve’s September interest-rate hike, rising fuel costs and a selloff in chip stocks. Investors aggressively reshuffled portfolios, resulting in higher revenue for the trading desks of banks.
The equities business posted a 72-per-cent jump in quarterly revenue to US$6.44-billion. The fixed income, currency and commodities business revenue, however, came in at US$3.47-billion, down 1 per cent from a year ago.
Goldman’s FICC business has been volatile this year. Net revenue surged 32 per cent in the second quarter, but had dropped 10 per cent in the first quarter when its rates business was hit by volatility from the Iran war.
CEO David Solomon said the bank was expecting a softer number from FICC in the third quarter.
“Notwithstanding the current complexity and uncertainty in the world, we remain very well positioned to continue to deliver for our clients,” Solomon said in a statement.
Total profit was US$5.29-billion, or US$17.01 per share, for the three months ended Sept. 30. That compares with US$4.10-billion, or US$12.25 per share, a year ago.
Shares of Goldman Sachs climbed about 1.5 per cent in volatile trading before the bell. They have gained about 1.7 per cent so far in 2026, underperforming closest peer Morgan Stanley and the S&P 500.
Investment banking holds
Goldman’s investment banking division navigated a brief slowdown in deal-making as M&A activity in the third quarter fell 41 per cent from the prior three months to US$993-billion, falling below US$1-trillion for the first time since the second quarter of 2025, LSEG data showed.
Investment banking fees rose 21 per cent from a year ago to US$3.22-billion. Goldman defied the broader market slowdown through higher debt and equity underwriting, alongside an 18-per-cent jump in advisory revenues.
The investment bank acted as joint lead bookrunner for Intel’s US$23-billion equity offering and global co-ordinator for SK Hynix’s US$26.5-billion U.S. offering.
It also advised the New York Yankees on a US$2.6-billion financing deal with Apollo Sports Capital affiliates and Nvidia on its US$3.5-billion investment in MediaTek.
On a sequential basis, owing to significant activity in the second quarter, investment banking fees dropped 5 per cent.
Stress-free private credit
Goldman Sachs’ private credit fund said in September investor requests to pull money slowed further in the third-quarter tender offer, keeping the number under the threshold 5-per-cent cap for the second straight quarter at a time when other private credit players have been facing redemption requests.
Private credit firms are facing pressure from investors seeking to pull their capital, driven by concerns that artificial intelligence could disrupt software companies in their portfolio.
However, withdrawal requests at major funds have slowed in the third quarter as asset managers clear backlogs and investor sentiment rebounds.
The asset and wealth management division, which houses the bank’s private credit fund, reported a 14-per-cent jump in its revenue, marking another strong quarter. That helped total revenue rise 23 per cent to US$18.68-billion.
The bank has expanded its asset and wealth management business in recent years to generate steadier earnings and reduce reliance on its volatile trading and investment banking units.
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