Goldman Sachs Q3 Earnings Soar on Strong Investment Banking, Asset Management

TL;DR

**GSCE is crushing it, buy the dip if you can find one, because these numbers scream growth.**

AI Summary

Goldman Sachs Group Inc. (GSCE) reported a robust financial performance for the three and nine months ended September 30, 2025. For the three months, total net revenues increased by 19.6% to $15.184 billion from $12.699 billion in the prior year, driven by a significant 42.6% rise in Investment Banking revenues to $2.659 billion and a 11.4% increase in Investment Management revenues to $2.952 billion. Net earnings applicable to common shareholders surged by 38.8% to $3.860 billion, up from $2.780 billion in the same period last year, resulting in diluted EPS of $12.25, a 45.8% increase from $8.40. For the nine months, total net revenues grew by 13.1% to $44.829 billion, and net earnings applicable to common shareholders rose by 24.1% to $11.916 billion. The firm's balance sheet shows total assets of $1.808 trillion as of September 30, 2025, an increase from $1.676 trillion at December 31, 2024, with deposits growing to $490.249 billion from $433.013 billion. Key risks include market volatility impacting trading assets and liabilities, and credit risk as evidenced by a provision for credit losses of $339 million for the quarter. The strategic outlook appears positive, with strong growth across core segments and a focus on managing capital and liquidity.

Why It Matters

This strong performance from Goldman Sachs signals a healthy environment for investment banking and asset management, which could indicate broader economic confidence and increased corporate activity. For investors, the significant increase in net earnings and diluted EPS suggests strong shareholder value creation and potential for continued growth, making GSCE an attractive prospect. Employees in these segments may see improved compensation and job security. Customers benefit from Goldman's robust capital position and diverse service offerings, particularly in wealth management and corporate financing. Competitively, Goldman's outperformance in key revenue streams like investment banking and investment management positions it favorably against peers like Morgan Stanley and JPMorgan, potentially allowing it to capture greater market share.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent volatility in market making and other principal transactions, which saw a slight decline in market making revenue to $3.868 billion from $4.127 billion year-over-year for the quarter. Additionally, the firm recorded a provision for credit losses of $339 million for the three months ended September 30, 2025, indicating ongoing credit risk exposure, although this was a decrease from $397 million in the prior year period. The firm's substantial holdings in trading assets ($652.585 billion) and available-for-sale securities ($103.962 billion) also expose it to significant market fluctuations.

Analyst Insight

Investors should consider increasing their exposure to Goldman Sachs, given the strong earnings growth and robust performance in core segments. The significant increase in diluted EPS to $12.25 and net earnings applicable to common shareholders to $3.860 billion indicates efficient capital deployment and strong profitability. Monitor market risk factors and credit loss provisions in future filings, but the current trajectory suggests a favorable investment.

Financial Highlights

revenue

$15.184B

total Assets

$1.808T

net Income

$3.860B

eps

$12.25

cash Position

$169.577B

revenue Growth

+19.6%

Revenue Breakdown

Key Numbers

• $15.184B — Total net revenues for Q3 2025 (Increased by 19.6% from $12.699 billion in Q3 2024)
• $3.860B — Net earnings applicable to common shareholders for Q3 2025 (Increased by 38.8% from $2.780 billion in Q3 2024)
• $12.25 — Diluted EPS for Q3 2025 (Increased by 45.8% from $8.40 in Q3 2024)
• $2.659B — Investment banking revenues for Q3 2025 (Increased by 42.6% from $1.864 billion in Q3 2024)
• $2.952B — Investment management revenues for Q3 2025 (Increased by 11.4% from $2.649 billion in Q3 2024)
• $490.249B — Deposits as of September 30, 2025 (Increased from $433.013 billion at December 31, 2024)
• $1.808T — Total assets as of September 30, 2025 (Increased from $1.676 trillion at December 31, 2024)
• $339M — Provision for credit losses for Q3 2025 (Decreased from $397 million in Q3 2024)

Key Players & Entities

• GOLDMAN SACHS GROUP INC (company) — registrant
• Apple Inc. (company) — credit card partnership
• General Motors (company) — credit card program sale
• Marcus by Goldman Sachs (company) — consumer banking digital platform
• NYSE (regulator) — exchange for securities
• SEC (regulator) — filing oversight
• Delaware (regulator) — state of incorporation

FAQ

Risk Factors

• Market Volatility [high — market]: Fluctuations in market prices can adversely affect trading assets and liabilities, impacting revenues and earnings. For the three months ended September 30, 2025, market making revenues decreased by 6.3% to $3.868 billion.
• Credit Risk [medium — financial]: The firm is exposed to credit risk from its lending and trading activities. The provision for credit losses was $339 million for the three months ended September 30, 2025, a decrease from $397 million in the prior year, indicating ongoing credit risk management.
• Regulatory and Legal Environment [medium — regulatory]: The financial services industry is subject to extensive regulation. Changes in regulations or adverse legal proceedings could impact the firm's operations and financial results. Note 27 details ongoing legal proceedings.
• Operational Risk [medium — operational]: The firm faces risks related to its operations, including technology failures, cybersecurity breaches, and human error. Effective risk management systems are crucial to mitigate these impacts.
• Interest Rate Sensitivity [medium — financial]: Changes in interest rates can affect net interest income and the valuation of financial instruments. The significant increase in net interest income to $3.852 billion for Q3 2025 suggests sensitivity to rate movements.

Industry Context

Goldman Sachs operates in a highly competitive global financial services landscape, facing pressure from large universal banks, specialized investment firms, and increasingly, fintech companies. Key industry trends include digital transformation, evolving regulatory frameworks, and a persistent focus on capital efficiency and sustainable growth.

Regulatory Implications

The firm operates under stringent regulatory oversight from bodies like the Federal Reserve. Compliance with capital adequacy requirements (e.g., Basel III/IV), liquidity rules, and consumer protection regulations is paramount and can influence business strategies and profitability.

What Investors Should Do

1. Monitor Investment Banking and Asset & Wealth Management growth drivers.
2. Assess the impact of interest rate environment on Net Interest Income.
3. Evaluate the firm's risk management effectiveness.
4. Observe trends in operating expenses, particularly compensation.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for strong revenue and earnings growth, with total net revenues at $15.184 billion and net earnings applicable to common shareholders at $3.860 billion.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for year-over-year balance sheet comparisons, with total assets at $1.676 trillion and deposits at $433.013 billion.
• 2024-09-30: End of Q3 2024 — Prior year comparison period, showing $12.699 billion in total net revenues and $2.780 billion in net earnings applicable to common shareholders.

Glossary

Variable Interest Entity (VIE)

An entity where the equity investors do not have sufficient equity at risk for the entity to finance its activities independently, and where the firm has a variable interest that provides it with the power to direct its activities and the obligation to absorb losses or right to receive benefits. (Important for understanding consolidation accounting and potential off-balance sheet exposures.)

Provision for credit losses

An expense recognized for estimated losses on loans and lending commitments that are not expected to be collected. (Indicates the firm's assessment of potential credit deterioration in its loan portfolio, with $339 million recorded for Q3 2025.)

Diluted EPS

Earnings per share calculated by dividing net income by the total number of diluted shares outstanding, including all dilutive potential common shares. (A key profitability metric for shareholders, showing a significant increase to $12.25 for Q3 2025.)

Fair Value Measurements

The process of determining the market value of assets and liabilities, crucial for financial instruments like trading assets and derivatives. (Underpins the valuation of a significant portion of the firm's balance sheet, impacting reported earnings and capital.)

Collateralized Agreements

Transactions where securities are purchased under agreements to resell or borrowed, typically involving collateral. (Represents a significant portion of the firm's assets and funding, with securities purchased under agreements to resell at $129.786 billion as of September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Goldman Sachs demonstrated significant top-line growth, with total net revenues increasing by 19.6% to $15.184 billion. This revenue expansion translated into a substantial 38.8% surge in net earnings applicable to common shareholders, reaching $3.860 billion, and a 45.8% rise in diluted EPS to $12.25. The balance sheet also expanded, with total assets growing from $1.676 trillion to $1.808 trillion, and deposits increasing to $490.249 billion, indicating a larger operational scale and funding base.

Key Financial Figures

• $0.01 — h registered Common stock, par value $0.01 per share GS NYSE Depositary Shares,

Filing Documents

• gs-20250930.htm (10-Q) — 9072KB
• gs-9302025x10qexhibit151.htm (EX-15.1) — 3KB
• gs-9302025x10qexhibit311.htm (EX-31.1) — 27KB
• gs-9302025x10qexhibit321.htm (EX-32.1) — 15KB
• gs-20250930_g1.jpg (GRAPHIC) — 29KB
• gs-20250930_g2.jpg (GRAPHIC) — 55KB
• 0000886982-25-001411.txt ( ) — 43047KB
• gs-20250930.xsd (EX-101.SCH) — 203KB
• gs-20250930_cal.xml (EX-101.CAL) — 176KB
• gs-20250930_def.xml (EX-101.DEF) — 1247KB
• gs-20250930_lab.xml (EX-101.LAB) — 1830KB
• gs-20250930_pre.xml (EX-101.PRE) — 1641KB
• gs-20250930_htm.xml (XML) — 10332KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Consolidated Statements of Earnings 1 Consolidated Statements of Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Changes in Shareholders' Equity 3 Consolidated Statements of Cash Flows 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Note 1. Description of Business 5 Note 2. Basis of Presentation 6 Note 3. Significant Accounting Policies 6 Note 4. Fair Value Measurements 13 Note 5. F air Value Hierarchy 18 Note 6. Trading Assets and Liabilities 33 Note 7. Derivatives and Hedging Activities 34 Note 8. Investments 40 Note 9. Loans 43 Note 10. Fair Value Option 52 Note 11. Collateralized Agreements and Financings 54 Note 12. Other Assets 57 Note 13. Deposits 60 Note 14. Unsecured Borrowings 60 Note 15. Other Liabilities 62 Note 16. Securitization Activities 63 Note 17. Variable Interest Entities 65 Note 18. Commitments, Contingencies and Guarantees 69 Note 19. Shareholders' Equity 73 Note 20. Regulation and Capital Adequacy 75 Note 21. Earnings Per Common Share 79 Note 22. Transactions with Affiliated Funds 79 Note 23. Interest Income and Interest Expense 80 Note 24. Income Taxes 80 Note 25. Business Segments 81 Note 26. Credit Concentrations 83 Note 27. Legal Proceedings 84 Page No. Report of Independent Registered Public Accounting Firm 96 Statistical Disclosures 97 Item 2

Management's Discussion and Analysis of Financial Condition

Management's Discussion and Analysis of Financial Condition and Results of Operations 99 Introduction 99 Executive Overview 99 Business Environment 100 Critical Accounting Policies 101 Use of Estimates 103 Recent Accounting Developments 104 Results of Operations 105 Balance Sheet and Funding Sources 124 Capital Management and Regulatory Capital 128 Regulatory and Other Matters 137 Off-Balance Sheet Arrangements 138 Risk Management 139 Overview and Structure of Risk Management 139 Liquidity Risk Management 143 Market Risk Management 150 Credit Risk Management 155 Operational Risk Management 164 Cybersecurity Risk Management 166 Model Risk Management 167 Other Risk Management 168 Available Information 170

Forward-Looking Statements

Forward-Looking Statements 171 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 174 Item 4

Controls and Procedures

Controls and Procedures 174 PART II OTHER INFORMATION 174 Item 1

Legal Proceedings

Legal Proceedings 174 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 174 Item 5 Other Information 174 Item 6 Exhibits 175

SIGNATURES

SIGNATURES 175 Goldman Sachs September 2025 Form 10-Q

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) Three Months Ended September Nine Months Ended September in millions, except per share amounts 2025 2024 2025 2024 Revenues Investment banking $ 2,659 $ 1,864 $ 6,769 $ 5,682 Investment management 2,952 2,649 8,548 7,673 Commissions and fees 1,110 873 3,537 3,001 Market making 3,868 4,127 14,324 14,557 Other principal transactions 743 839 1,800 3,019 Total non-interest revenues 11,332 10,352 34,978 33,932 Interest income 20,822 21,448 59,994 61,443 Interest expense 16,970 19,101 50,143 55,732 Net interest income 3,852 2,347 9,851 5,711 Total net revenues 15,184 12,699 44,829 39,643 Provision for credit losses 339 397 1,010 997 Operating expenses Compensation and benefits 4,680 4,122 14,241 12,947 Transaction based 1,968 1,701 5,773 4,852 Market development 171 159 494 465 Communications and technology 545 498 1,581 1,468 Depreciation and amortization 531 621 1,655 1,894 Occupancy 242 242 709 733 Professional fees 432 400 1,296 1,177 Other expenses 884 572 2,073 1,970 Total operating expenses 9,453 8,315 27,822 25,506 Pre-tax earnings 5,392 3,987 15,997 13,140 Provision for taxes 1,294 997 3,438 2,975 Net earnings 4,098 2,990 12,559 10,165 Preferred stock dividends 238 210 643 563 Net earnings applicable to common shareholders $ 3,860 $ 2,780 $ 11,916 $ 9,602 Earnings per common share Basic $ 12.42 $ 8.52 $ 37.75 $ 28.98 Diluted $ 12.25 $ 8.40 $ 37.33 $ 28.64 Average common shares Basic 309.6 324.8 314.6 330.0 Diluted 315.0 330.8 319.2 335.3 Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended September Nine Months Ended September $ in millions 2025 2024 2025 2024 Net earnings $ 4,098 $ 2,990 $ 12,559 $ 10,165 Other comprehensive income/(loss) adjustments, net of tax: Currency translation 23 ( 25 ) ( 47 ) ( 3 ) Debt valuation adjustment ( 711 ) ( 95

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Description of Business The Goldman Sachs Group, Inc. (Group Inc. or parent company), a Delaware corporation, together with its consolidated subsidiaries (collectively, the firm), is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world. The firm manages and reports its activities in the following three business segments: Global Banking & Markets The firm provides a broad range of services to a diverse group of corporations, financial institutions, investment funds and governments. Services include strategic advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs, and equity and debt underwriting of public offerings and private placements. The firm facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. In addition, the firm makes markets in and clears institutional client transactions on major stock, options and futures exchanges worldwide and provides prime financing (including securities lending, margin lending and swaps), portfolio financing and other types of equity financing (including securities-based loans to individuals). The firm also provides lending to corporate clients, including through relationship lending and acquisition financing, and secured lending, through structured credit and asset-backed lending. In addition, the firm provides commodity financing to clients through structured transactions and also provides financing through securities purchased under agreements to resell (resale agreements). The firm also makes equity and debt investments related to Global Banking & Mar

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 2. Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of Group Inc. and all other entities in which the firm has a controlling financial interest. Intercompany transactions and balances have been eliminated. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the firm's Annual Report on Form 10-K for the year ended December 31, 2024. References to "the 2024 Form 10-K" are to the firm's Annual Report on Form 10-K for the year ended December 31, 2024. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. These unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for a full year. All references to September 2025, June 2025 and September 2024 refer to the firm's periods ended, or the dates, as the context requires, September 30, 2025, June 30, 2025 and September 30, 2024, respectively. All references to December 2024 refer to the date December 31, 2024. Any reference to a future year refers to a year ending on December 31 of that year. Certain reclassifications have been made to previously reported amounts to conform to the current presentation. Note 3. Significant Accounting Policies The firm's significant accounting policies include when and how to measure the fair value of assets and liabilities, measuring the allowance for cr

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Consolidation The firm consolidates entities in which the firm has a controlling financial interest. The firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE). Voting Interest Entities. Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the firm has a controlling majority voting interest in a voting interest entity, the entity is consolidated. Variable Interest Entities. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. The firm has a controlling financial interest in a VIE when the firm has a variable interest or interests that provide it with (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. See Note 17 for further information about VIEs. Equity-Method Investments. When the firm does not have a controlling financial interest in an entity but can exert significant influence over the entity's operating and financial policies, the investment is generally accounted for at fair value by electing the fair value option available under U.S. GAAP. Significant influence generally exists when the firm owns 20% to 50% of the entity's common stock or in-substa

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Revenue from Contracts with Clients. The firm recognizes revenue earned from contracts with clients for services, such as investment banking, investment management, and execution and clearing (contracts with clients), when the performance obligations related to the underlying transaction are completed. Revenues from contracts with clients represent approximately 55 % of total non-interest revenues for the three months ended September 2025 and approximately 50 % of total non-interest revenues for the nine months ended September 2025 (each including approximately 85 % of investment banking revenues, approximately 95 % of investment management revenues and all commissions and fees), and approximately 50 % of total non-interest revenues for the three months ended September 2024 and approximately 45 % of total non-interest revenues for the nine months ended September 2024 (each including approximately 85 % of investment banking revenues, approximately 95 % of investment management revenues and all commissions and fees). See Note 25 for i

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