Goldman Sachs stock dips after Q3 expenses, headcount climb; earnings and revenue beat

[Goldman Sachs Tower]
Dan Totilca

Goldman Sachs (NYSE:GS [https://seekingalpha.com/symbol/GS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) stock slid 2.1% in Tuesday premarket trading after the bank's Q3 expenses exceeded the average analyst estimate. Meanwhile, earnings, revenue and net interest income came in higher than Wall Street consensus estimates, helped by increased investment banking activity and growth in its assets and wealth management unit.

Q3 GAAP EPS [https://www.goldmansachs.com/pressroom/press-releases/current/pdfs/2025-q3-results.pdf] of $12.25, topping the average analyst estimate of $11.09, rose from $10.91 in Q2 and $8.40 in last year’s Q3.

Total revenue of $15.2B, beating the $14.3B consensus, increased from $14.6B in the prior quarter and $12.7B a year ago.

"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 said.

Q2 net interest income of $3.85B, exceeding the Visible Alpha consensus of $3.00B, climbed from $3.10B in Q1 and $2.35B in last year's Q2.

Provision for credit losses of $339M, lower than the Visible Alpha consensus of $361M, declined from $384M in the previous quarter and $397M a year ago.

Total operating expenses of $9.45B, vs. the Visible Alpha estimate of $8.98B, rose from $9.24B in Q2 and $3.32B in last year's Q3. Headcount totaled 48,300, up from 45,900 at the end of Q2.

"Longer term, we are prioritizing the need to operate more efficiently to seamlessly deliver the firm to our clients helped by new AI technologies," Solomon said.

Annualized return on average common shareholders' equity was 14.2%, up 1.44 percentage points from the prior quarter and 2.6pp from the year-ago quarter.

Loans of $222B at Sept. 30, 2025, grew from $217B at June 30, 2025. Deposits of $490B increased from $466B at the end of Q2.

Global Banking & Market net revenue of $10.1B was roughly flat Q/Q and climbed 18% Y/Y. Investment banking fees of $2.66B climbed 21% Q/Q and 42% Y/Y; FICC net revenue of $3.47B was flat Q/Q and increased 17% Y/Y. Equity revenue of $3.74B fell 13% Q/Q and rose 7% Y/Y

Asset & Wealth Management net revenue of $4.40B increased 16% Q/Q and 17% Y/Y; management and other fees totaled $2.95B, rising 5% Q/Q and 12% Y/Y.

Platform Solutions net revenue of $670M dipped 2% Q/Q and rose 20% Y/Y.

Conference call [https://www.goldmansachs.com/investor-relations]at 9:30 AM ET.

Earlier, Goldman Sachs GAAP EPS of $12.25 beats by $1.16, revenue of $15.18B beats by $930M [https://seekingalpha.com/news/4503831-goldman-sachs-gaap-eps-of-12_25-beats-by-1_16-revenue-of-15_18b-beats-by-930m]

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