Goldman Sachs CEO David Solomon said the firm’s equities business continues to perform strongly in the third quarter, while fixed income, currencies and commodities activity has been somewhat softer, according to Reuters. Solomon also signaled higher expenses as Goldman accelerates technology investments and absorbs increased transaction costs.
Speaking at Barclays’ Global Financial Services Conference, Solomon said equities remain particularly strong on a relative basis, while FICC performance has moderated. He noted that several weeks remain in September, leaving time for trading conditions to change before the quarter closes.
The update follows a volatile first half for Goldman’s markets businesses.
FICC net revenue increased 32% year over year during the second quarter after declining 10% in the first quarter, when volatility associated with the Iran war weighed on the firm’s rates business. Goldman’s second-quarter results were also helped by increased deal activity and market volatility, with equities revenue reaching a record.
Solomon’s latest comments suggest that strength has continued in equities even as other parts of the trading franchise have experienced a more moderate quarter.
Goldman is also preparing investors for higher operating expenses.
Solomon said transaction expenses are running above previous levels and the firm has accelerated some technology investments. As a result, Goldman expects non-compensation expenses to be more than $500 million higher sequentially.
The increased technology spending is notable as major Wall Street firms continue investing in artificial intelligence, automation, cloud infrastructure and other systems intended to improve productivity across trading, investment banking, asset management and internal operations.
Goldman has been expanding its use of AI across the organization, making technology an increasingly important component of both its operating strategy and expense base.
Solomon also said provisions for bad debt will rise because of what he described as a couple of idiosyncratic items, although he did not provide additional details.
Another area investors are watching closely is investment banking.
Solomon cautioned that Goldman’s investment activity is likely to be significantly more muted in the third quarter after a particularly active second quarter.
The comment comes amid signs that the broader investment banking recovery has been uneven.
Global investment banking revenue totaled about $21.19 billion during the third quarter through September 15, compared with $23.77 billion during the comparable period a year earlier, according to Dealogic data cited by Reuters. Slower merger and acquisition activity and debt issuance contributed to the decline.
Bank of America CEO Brian Moynihan separately said this week that industry investment banking fees could decline about 10% in the third quarter, with Bank of America itself potentially experiencing a larger decrease.
Despite the softer industry environment, the largest Wall Street banks continue to capture a substantial share of major transactions. Goldman, JPMorgan and Morgan Stanley accounted for nearly one-quarter of global investment banking fees through September 15, up from 19% for the full third quarter of 2025, according to LSEG figures cited by Reuters Breakingviews.
Goldman’s broader asset and wealth management business is also continuing to deploy significant capital.
A day before Solomon’s conference comments, Goldman Sachs Alternatives announced that it had raised $11.7 billion across new private equity funds and related vehicles. That included $9.6 billion for West Street Capital Partners IX, more than $1.6 billion for its first dedicated Asia private equity strategy and approximately $500 million for related co-investment vehicles.
More than one-third of the flagship private equity fund has already been invested, and Goldman Sachs Alternatives had $459 billion in assets under supervision as of June 30. The business is targeting $750 billion by the end of 2030.
Those fundraising figures highlight another part of Goldman’s growth strategy beyond the more cyclical trading and advisory businesses.
The firm has spent years expanding recurring revenue streams across asset and wealth management while retaining leading positions in investment banking and global markets.
Solomon’s third-quarter comments therefore present a mixed operating picture rather than a broad slowdown.
Equities remain strong, FICC has softened relative to that performance, investment activity is expected to moderate from the second quarter, and spending is increasing as Goldman accelerates technology investments.
The market reacted cautiously. Goldman shares were down about 4% during afternoon trading on September 16 as bank stocks weakened more broadly.
For Goldman, one of the major questions heading into the remainder of 2026 will be how quickly investment banking activity reaccelerates and whether continued strength in equities can offset softer performance elsewhere in the markets franchise.
The firm’s decision to increase technology investment even while quarterly expenses rise also suggests management continues to prioritize longer-term operating capabilities despite near-term pressure on costs.
