Goldman Sachs Group Inc. (NYSE:GS) shares are trading lower on Tuesday after the firm reported third-quarter results.
The firm beat analyst expectations, boosted by growth across all segments.
Net revenue rose 20% year over year (Y/Y) to $15.18 billion, topping the consensus estimate of $14.10 billion.
Net Interest Income surged 64% Y/Y to $3.85 billion in the quarter on a decline in funding costs and higher interest-earning assets.
Provision for credit losses declined to $339 million, compared with $397 million a year ago and $384 million last quarter, driven by net provisions related to the credit card portfolio.
GAAP earnings came in at $12.25 per share, up from $8.40 a year ago and above the $10.86 consensus.
Operating expenses rose 14% Y/Y to $9.45 billion, on higher compensation and transaction-based costs.
The firm’s efficiency ratio improved to 62.1% for the first nine months of 2025, down from 64.3% a year ago.
The firm’s Standardized CET1 capital ratio stood at 14.4%, while the Advanced CET1 ratio came in at 15.2%.
Quarterly Highlights
Goldman Sachs reported its third-highest quarterly net revenues, driven by strong investment banking fees and equities performance, including a record in equities financing.
The firm ranked first in announced and completed M&A and second in high-yield debt and leveraged loan offerings.
Assets under supervision (AUS) reached a record $3.45 trillion, marking the 31st consecutive quarter of long-term fee-based net inflows.
Management and other fees, as well as private banking and lending net revenues, also hit record levels. The quarter included the completed sale of the General Motors credit card program.
David Solomon, Chairman and CEO of Goldman Sachs, commented, “This quarter’s results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment. Across our business, clients continue to turn to us for their most complex and consequential matters.”
“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.”
Segment Highlights
Global Banking and Markets revenue rose 18% Y/Y to $10.12 billion, led by a 42% Y/Y rise in investment banking fees and strong performance in FICC (+17% Y/Y) and equities (+7% Y/Y).
Asset and Wealth Management revenue surged 17% Y/Y to $4.40 billion, led by increased Management and other fees and significantly higher net revenues in Private banking and lending. Wealth management client assets totaled approximately $1.8 trillion.
Platform Solutions revenue jumped 71% Y/Y to $670 million, on easier Y/Y comparison.
Dividend And Share Buyback
Goldman returned $3.25 billion to shareholders, including $2 billion in buybacks and $1.25 billion in dividends.
On October 13, the Board increased the quarterly dividend to $4.00 per common share from $3.00, payable on December 30, 2025, to common shareholders of record on December 2, 2025.
Investors can gain exposure to the Goldman Sachs stock via Shares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI), and Global X Funds Global X Dow 30 Covered Call ETF (NYSE:DJIA).
Price Action: GS shares were trading lower by 3.16% to $761.93 premarket at last check Tuesday.
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