Highlights

  • Goldman Sachs shows 41.08% basic EPS growth, a P/E of 12.60 and PEG of 0.62.
  • Third quarter net earnings were $5,294 million, or $17.01 per diluted share.
  • Net revenues were $18,679 million, 23% higher than the third quarter of 2025.
  • Goldman repurchased 2.9 million shares for $3.00 billion and declared a $5.00 dividend.

Basic earnings per share growth of 41.08% over one year, a trailing twelve-month P/E of 12.60 and a PEG of 0.62 on an expected basis define Goldman Sachs (NYSE:GS) as an undervalued growth stock, with shares trading at USD 923.86 on October 28, 2026, up 1.33%. Alongside those figures, the global financial institution announced agreements in the third quarter to acquire NEOS Investments and LCN Capital Partners, declared a dividend of $5.00 per common share on October 12 and reported third quarter 2026 net earnings of $5,294 million on October 13.

The Goldman Sachs Group, Inc. is incorporated in Delaware and headquartered at 200 West Street in New York. Founded in 1869, it delivers financial services to corporations, financial institutions, governments and individuals, with offices in all major financial centers. It reports three segments: Global Banking & Markets, Asset & Wealth Management and Platform Solutions. Headcount was 47,500 at September 30, 2026.

Growth: Third Quarter Earnings, Net Revenues and Segments

Net earnings were $5,294 million in the third quarter against $4,098 million a year earlier, and $17,552 million for the nine months against $12,559 million. Basic earnings per share were $17.24 against $12.42, and diluted earnings per share were $17.01 against $12.25 and $20.98 for the second quarter of 2026. For the nine months, diluted earnings per share were $55.56 against $37.33.

Net revenues were $18,679 million, 23% higher than the third quarter of 2025 and 8% lower than the second quarter of 2026. Global Banking & Markets net revenues were $13,458 million, 32% higher year on year: investment banking fees were $3,224 million, up 21%, Equities net revenues were $6,441 million, up 72%, and FICC net revenues were $3,471 million, essentially unchanged. Asset & Wealth Management net revenues were $5,051 million, up 14%, with management and other fees of $3,587 million. Nine-month net revenues were $56,244 million.

Valuation: P/E of 12.60, PEG of 0.62 and Returns

The P/E ratio of 12.60 is measured on trailing twelve-month earnings, and the PEG ratio of 0.62 on expected growth. Annualized return on average common shareholders' equity was 18.7% for the third quarter and 20.7% for the nine months. Book value per common share was $372.64, up 1.4% during the quarter and 4.2% during the nine months.

The company said charitable contributions to Goldman Sachs Gives reduced third quarter diluted EPS by approximately $1.00 and annualized ROE by approximately 1.1 percentage points. On the third quarter call, Chairman and Chief Executive Officer David Solomon said durable revenues represent about 45% of year-to-date revenues.

Capital Returns, Capital Ratios and Liquidity

Goldman Sachs returned $4.49 billion of capital to common shareholders in the quarter: $3.00 billion of repurchases, covering 2.9 million shares at an average cost of $1,048.73, and $1.49 billion of common stock dividends. The Board declared the $5.00 dividend on October 12, payable December 30, 2026.

The standardized common equity tier 1 capital ratio was 12.4% against 12.9% at June 30, 2026, which the company tied primarily to higher market and credit risk-weighted assets. The advanced ratio was 13.6%, unchanged. Global core liquid assets averaged $574 billion against $555 billion in the second quarter. Deposits were $568 billion and unsecured long-term borrowings were $352 billion.

Disclosed Risks and Outlook

The provision for credit losses was $368 million against $339 million a year earlier and $102 million in the second quarter, primarily reflecting impairments related to wholesale loans. Operating expenses were $11,308 million, 20% higher year on year, with transaction based expenses up 54%. Platform Solutions net revenues were $170 million, 72% lower, primarily reflecting net markdowns on the Apple Card loan portfolio, which moved to held for sale in the fourth quarter of 2025.

Within Global Banking & Markets, FICC intermediation net revenues were lower, and the investment banking fees backlog decreased from the end of the second quarter and slightly from the end of 2025. The nine-month effective tax rate was 20.4%, up from 18.5% for the first half.

On the call, management said renewed geopolitical tensions and disruption of energy flows had added complexity to the outlook. The company listed tariffs and the conflict in the Middle East among the factors that could affect its backlog.

Management said it expects a full-year effective tax rate of approximately 20%, full-year alternatives fundraising of roughly $150 billion, incentive fees that remain elevated in the fourth quarter and a contribution to charitable causes in the fourth quarter.