Goldman Sachs’ Q3 2025 Surge: 42% IB Fee Growth, Wealth Management Bolsters Revenue

The third quarter of 2025 marks a watershed moment for Goldman Sachs, underpinned by a broad-based rebound in investment banking and capital markets. Investment banking fees were buoyed by a sharp upswing in advisory work (up ~60% YoY) and strong performance in both debt and equity underwriting. (Debt underwriting rose ~30%; equity underwriting ~21%.) [5][3][4] This suggests corporations are re-engaging in large-scale deals—both M&A and financing—after a period of hesitation. Deal pipelines appear healthier, with Goldman maintaining a leading share of announced and completed M&A globally. [4][19]

Moreover, the firm’s strength isn’t limited to investment banking. Net revenue of US$15.18 billion—20% higher than Q3 2024—is anchored by solid performance across Global Banking & Markets (up ~18%), FICC (up ~17%), and Equities (up ~7%). [5][3] Asset & Wealth Management revenues increased ~17%, helped by record assets under supervision (AUS) (~US$3.45 trillion) and strong net inflows. [5][0][4]

On profitability, Goldman’s diluted EPS of US$12.25 and ROE of 14.2% reflect value capture from deal flow, higher financing income, and scale in wealth management. Yet, expenses rose ~14% YoY to US$9.45 billion, pressured by compensation, transaction costs, and regulatory/litigation-related outlays. [5][3][0] The efficiency ratio improved modestly but margins remain dependent on continued deal and underwriting momentum. [5]

Strategically, several vectors emerge: first, Goldman’s rebound underscores cyclicality in investment banking—with market clarity and interest rate stabilization likely to further unlock deal activity. Second, wealth management and alternatives are serving as stabilizers against trading volatility. Third, the firm’s ability to harness AI and technology in delivery and risk management is increasingly central to sustaining scale and efficiency. Fourth, leadership in regional activity—e.g., Europe M&A market share hitting highest levels in 25 years—suggests the firm’s global footprint and localized investment are paying off. [15]

Open questions include whether investment banking momentum is sustainable amid macroeconomic headwinds (inflation, rate hikes, geopolitical risk), whether underwriting will live up to elevated expectations, how competition—especially with firms like Morgan Stanley—may intensify, and whether Goldman’s capital return strategy balances regulatory constraints and reinvestment. Especially, performance in equities underwriting vs. estimates showed some softness. [5][7]