It has been about a month since the last earnings report for Goldman Sachs (GS Quick QuoteGS - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Goldman due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for The Goldman Sachs Group, Inc. before we dive into how investors and analysts have reacted as of late.

Goldman Q3 Earnings Beat on Strong Equities & IB Revenues

Goldman reported third-quarter 2026 earnings per share of $17.01, which topped the Zacks Consensus Estimate by 31.9%. The metric also jumped 39% from $12.25 a year ago.

Driven by robust client activity, Goldman posted net revenues of $6.44 billion in Equities, which jumped 72% year over year, while fixed income, currencies and commodities (FICC) revenues remained essentially unchanged at $3.47 billion. Strong dealmaking activity lifted investment banking (IB) fees 21% to $3.22 billion, supported by higher advisory, equity underwriting and debt underwriting revenues. Driven by these positives, shares of Goldman rose nearly 3% in the early trading session. A full day’s trading session will depict a clearer picture.

Goldman’s overall results benefited from strong revenue growth in the Global Banking & Markets and Asset & Wealth Management businesses, while profitability was highlighted by an annualized return on equity of 18.7%. However, higher operating expenses and increased provisions for credit losses created headwinds.

Net earnings attributable to common shareholders were $5.12 billion, up 33% year over year.

Revenues & Expenses Increase

Net revenues were $18.68 billion, rising 23% year over year and comfortably surpassing the Zacks Consensus Estimate of $16.87 billion by 10.75%.

Total non-interest revenues were $14.91 billion, up 32% year over year. The increase reflected higher investment banking revenues, investment management revenues, commissions and fees, and market-making revenues, partially offset by lower other principal transactions revenues. Net interest income was $3.77 billion, down 2% from the prior-year quarter.

On the cost side, operating expenses were $11.31 billion, up 20% from the prior-year quarter. Management attributed the increase primarily to significantly higher transaction-based expenses and higher compensation and benefits expenses, reflecting improved operating performance.

Even with higher costs, Goldman’s efficiency ratio declined 180 basis points to 60.5% for the quarter.

Provision for credit losses was $368 million, up from $339 million in the year-ago quarter, primarily reflecting impairments related to wholesale loans.

Quarterly Segmental Performance

The Asset & Wealth Management business generated net revenues of $5.05 billion, up 14% year over year. The increase primarily reflected significantly higher management and other fees, driven by higher average assets under supervision, and higher incentive fees from fund distributions. These positives were partially offset by lower investments and private banking, and lending revenues. Total assets under supervision increased to a record $4.10 trillion, reflecting $83 billion in total net inflows and $97 billion in long-term net inflows during the quarter.

The Global Banking & Markets business generated net revenues of $13.46 billion, up 32% year over year. Growth was driven by significantly higher Equities revenues and increased investment banking fees, while FICC revenues remained essentially unchanged. Equities benefited from significantly higher financing and intermediation revenues, while investment banking fees were supported by higher advisory, equity underwriting and debt underwriting revenues.

The Platform Solutions business reported net revenues of $170 million, down 72% from the year-ago quarter. The decline primarily reflected net markdowns related to the Apple Card loan portfolio, which had previously been transferred to held for sale.

Balance Sheet & Capital Position

Goldman ended the third quarter with total assets of $2.18 trillion, up from $2.13 trillion at the end of the second quarter, while deposits were $568 billion compared with $558 billion in the previous quarter. Total loans increased sequentially to $276 billion from $261 billion.

Capital ratios showed mixed trends sequentially. The standardized CET1 capital ratio declined to 12.4% from 12.9%, while the advanced CET1 ratio remained unchanged at 13.6%. The supplementary leverage ratio was stable at 4.3%.

During the quarter, Goldman returned $4.49 billion to shareholders, including $3 billion in common share repurchases and $1.49 billion in common stock dividends. 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, Goldman has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Goldman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.