Goldman Sachs delivered robust earnings for the third quarter of 2025, posting numbers that exceeded analyst expectations and reflected a sharp recovery in capital markets activity, investment banking, and wealth management. Net revenues for the period were $15.18 billion, representing a 20% jump compared with the same quarter last year and a record for the investment bank, while net earnings soared 37% to $4.1 billion. Diluted earnings per common share were reported at $12.25, well above both the $8.40 reported last year and recent consensus estimates.
A strong resurgence in dealmaking propelled investment banking fees to $2.66 billion, a staggering 42% increase year over year. The firm cited “a significant increase in completed mergers and acquisitions volumes, and in debt underwriting, primarily driven by an increase in leveraged finance activity.” Advisory fees saw a remarkable 60% rise, while trading desks profited from renewed investor interest and portfolio rebalancing. Equities trading revenue rose 7% to $3.74 billion as investors embraced higher risk in response to AI-driven market highs and major shifts in U.S. economic policy under President Donald Trump.
Asset and wealth management growth
Goldman’s asset and wealth management division reported $4.4 billion in revenues, up 17% from the third quarter last year, driven by higher management fees and strongly improved earnings from private banking and lending operations. The growth was attributed to higher average assets under supervision and a one-time interest payment on a previously impaired loan.
“This quarter’s results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment,” chairman and CEO David Solomon wrote in the earnings release. He added that the bank knows “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.”
Shareholder returns and balance sheet
The annualized return on average common shareholders’ equity was 14.2%, up from prior periods and demonstrating healthy profitability. Book value per share rose 1.2% during the quarter, reaching $353.79, and 5.1% over the first nine months of the year.
Shares of Goldman Sachs were down slightly in premarket trading, with broader investor sentiment remaining cautious amid muted sector-wide reactions to positive earnings surprises. The stock is up more than 36% year to date.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.