Goldman Sachs Group Inc. (NYSE:GS) stock traders generated $6.44 billion of revenue in the third quarter, 72% more than a year earlier. Its bond traders generated $3.47 billion, unchanged from a year ago and below Wall Street’s estimate.
The same split appeared at JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC), which also reported before the open on Tuesday.
Investors rewarded the bank most exposed to stock trading.
Goldman shares rose 4.5% in premarket trading. JPMorgan was little changed after missing profit estimates. Wells Fargo fell 1.4% despite beating them.
| Bank | EPS vs. estimate | Revenue vs. estimate | Premarket move |
|---|---|---|---|
| Goldman Sachs | $17.01 vs. $13.08 | $18.68B vs. $16.71B | +4.5% |
| JPMorgan Chase | $5.75 adjusted vs. $5.90 | $50.91B vs. $51.26B | +0.1% |
| Wells Fargo | $1.87 vs. $1.85 | $21.87B vs. $22.31B | -1.4% |
Goldman’s Equities Desk Topped Estimates by $1.35 Billion
Goldman’s equities revenue of $6.44 billion compared with the $5.09 billion analysts expected. The firm cited derivatives and prime financing, which is lending to hedge funds.
Fixed-income desks trade bonds, currencies and commodities. Goldman’s brought in $3.47 billion, below the $3.72 billion estimate. The firm cited lower revenue in mortgages, credit and interest-rate products.
Investment banking fees rose 21% to $3.22 billion.
As a result, Goldman earned $17.01 per share, up from $12.25 a year earlier and above the $13.08 consensus.
Morgan Stanley (NYSE:MS), which reports on Wednesday, rose 2.1%.
Equities revenue rose 72% at Goldman, 49% at JPMorgan and 21% at Wells Fargo. Equities produced about 34% of Goldman’s revenue, against about 10% at JPMorgan and 2% at Wells Fargo.
Fixed-income revenue was flat at Goldman, fell 4% at JPMorgan and fell 7% at Wells Fargo.
JPMorgan Missed Estimates but Raised Its Outlook
JPMorgan earned $15.3 billion, or $5.57 per share, up 6% from a year earlier.
The result included $658 million of net losses on investment securities, which cut earnings by 18 cents per share. Excluding that item, earnings were $5.75 per share, below the $5.90 consensus.
Equities revenue of $4.95 billion beat the $4.47 billion estimate. Yet, fixed-income revenue of $5.37 billion missed the $6 billion estimate.
Chief Executive Jamie Dimon said client activity “did moderate somewhat during the quarter.”
Meanwhile, the bank raised its outlook. It now expects about $106.2 billion of net interest income in 2026.
For 2027, its central case is about $107 billion excluding its markets unit, up from about $97.2 billion this year.
Wells Fargo Beat on Profit and Missed on Revenue
Wells Fargo earned $1.87 per share, up 13% from a year earlier and 2 cents above consensus.
However, revenue of $21.87 billion missed the $22.31 billion estimate. Net interest income of $12.52 billion came in below the $12.59 billion expected.
Chief Executive Charlie Scharf said growth was “partially offset by lower revenue from our venture capital investments” and by lower lease income after the sale of its rail car leasing business.
For the fourth quarter, the bank expects net interest income of about $13 billion, above the $12.86 billion estimate.
Banks Still Trail the Market in 2026
The sector has lagged this year.
The State Street Financial Select Sector SPDR ETF (NYSE:XLF) is up 0.4% in 2026, against 13.5% for the State Street SPDR S&P 500 ETF (NYSE:SPY).
Treasury yields eased on Tuesday. The 10-year yield fell 6 basis points to 5.18%, the 30-year fell 5 basis points to 5.55% and the 2-year slipped 1.5 basis points to 4.78%.
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