Goldman Sachs Q3 Earnings Preview: Investment Banking Revival Meets Market Euphoria

Goldman Sachs Group Inc. GS reports third-quarter results before the market opens on Tuesday, October 14, 2025. Analysts expect EPS of $11.02 on revenue of $14.12 billion. The stock has been on a remarkable run. Up 32% year to date and over 50% in the past twelve months, rallying more than 70% from April lows and sitting just 7% below its record $825.25. Expectations, in short, are high.

After two years of sluggish M&A and muted equity issuance, Goldman's advisory and underwriting units are benefiting from renewed corporate confidence and a healthier IPO market. On the Q2 call, CEO David Solomon mentioned the firm's backlog remains strong for the second half of 2025. Now, investors will listen for his tone on the pipeline heading into 2026 and how much of the rebound feels cyclical versus structural.

Recently, Solomon has also highlighted AI's expanding role in the bank's operations, noting its use in risk management and client analytics. Yet he recently warned of a possible market drawdown amid the AI boom, cautioning that optimism may be running ahead of fundamentals.

Volatility in trading remains a key swing factor. The quarter saw renewed volatility in rates and commodities, helping fixed-income desks, while equity trading may normalize after a strong first half. Analysts will focus on return on equity, expense control, and guidance on balance-sheet deployment and capital returns could shape sentiment heading into year-end.