Goldman Sachs delivered third quarter results that exceeded Wall Street expectations, driven by a resurgence in investment banking activity and resilient performance across its trading businesses. Management emphasized the firm’s leadership in mergers and acquisitions, highlighting a substantial rebound in completed deals and a deep advisory pipeline. CEO David Solomon credited the “multiplier effect” of the firm’s integrated approach, noting that M&A activity is feeding opportunities in financing and other businesses. The quarter also saw continued growth in asset and wealth management, with a record $3.5 trillion in assets under supervision and robust fundraising in alternatives.
Is now the time to buy GS? Find out in our full research report (it’s free for active Edge members).
Goldman Sachs (GS) Q3 CY2025 Highlights:
- Revenue: $15.18 billion vs analyst estimates of $14.21 billion (19.6% year-on-year growth, 6.8% beat)
- Adjusted EPS: $12.23 vs analyst estimates of $10.57 (15.7% beat)
- Adjusted EBITDA: $5.92 billion (39% margin, 27.4% year-on-year growth)
- Operating Margin: 35.5%, up from 31.7% in the same quarter last year
- Market Capitalization: $241.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Goldman Sachs’s Q3 Earnings Call
- Glenn Schorr (Evercore): Asked about Goldman’s use of synthetic risk transfer to manage credit exposures. CFO Dennis Coleman explained this is part of routine risk management, not a response to specific concerns, and aimed at ensuring ongoing client support.
- Ebrahim Poonawala (Bank of America): Inquired about risks in private credit lending and the impact of regulatory changes on competitive positioning. CEO David Solomon stressed the firm’s strong underwriting standards and noted improving regulatory conditions are enhancing Goldman’s market position.
- Erika Najarian (UBS): Sought details on growth opportunities from the One Goldman Sachs 3.0 initiative and recent acquisitions. Solomon highlighted plans to scale asset and wealth management, particularly through targeted acquisitions like Industry Ventures and new partnerships.
- Christian Bolu (Autonomous Research): Queried the decline in equities intermediation revenues and risk management practices in financing businesses. Coleman attributed softness to cash equities, while emphasizing robust risk controls and portfolio monitoring.
- Betsy Graseck (Morgan Stanley): Asked about further exits from non-core credit card programs and potential for larger wealth management acquisitions. Solomon reiterated the firm’s focus on ultra-high-net-worth clients and stated that any larger deals would face a high bar for approval.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and breadth of M&A and capital markets activity as a signal of investment banking momentum, (2) measurable progress on the rollout and impact of the One Goldman Sachs 3.0 AI-driven operational model, and (3) continued growth and margin improvement in asset and wealth management. Execution on recent acquisitions and partnerships will also be key markers of strategic progress.
Goldman Sachs currently trades at $760.95, down from $787.91 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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