Goldman Sachs appears well-positioned heading into 2027, supported by strong investment banking performance, resilient trading revenues, and continued growth in its asset and wealth management business. The company's focus on operating efficiency and disciplined capital management strengthens its long-term growth prospects. However, potential moderation in merger and acquisition (M&A) activity in 2027, along with policy and regulatory uncertainties following the 2026 U.S. midterm elections, could dampen investment banking momentum. Elevated expenses and macroeconomic headwinds pose additional challenges.
Goldman continues to benefit from the recovery in global investment banking activity, with IB fees jumping 40% year over year to $9.46 billion in the first nine months of 2026. Advisory revenues rose 34% to $4.53 billion, while equity and debt underwriting revenues increased 73% and 29% to $2.19 billion and $2.75 billion, respectively. The company's leadership position and robust deal pipeline bode well for continued growth, despite potential slower M&A activity in 2027.
Goldman's strategic streamlining efforts are paying off, with a focus on Global Banking & Markets (GBM) and Asset & Wealth Management (AWM). The company has acquired NEOS Investments and LCN Capital Partners, expanding its private real estate investment capabilities. In the first nine months of 2026, GBM revenues jumped 34% year over year to $41.72 billion, while AWM revenues rose 15% to $13.73 billion. These initiatives reflect Goldman's progress in building a more diversified earnings base and improving revenue stability.
Goldman is accelerating its firmwide artificial intelligence transformation, integrating AI across its core businesses to enhance efficiency and strengthen its competitive position. The company launched AlphaAI, an AI-focused investment platform, and partnered with Anthropic, Blackstone, and Hellman & Friedman to establish a $1.5-billion AI services venture. Goldman's focus on operating efficiency is also reflected in its latest results, with the efficiency ratio improving to 59.4% from 62.1% in the year-ago period.
Goldman maintains a strong balance sheet, supported by robust liquidity and capital levels. As of Sept. 30, 2026, Goldman's deposits totaled $568 billion, up from $558 billion as of June 30, 2026. The company's average global core liquid assets increased to $574 billion in the third quarter from $555 billion in the preceding quarter, providing a substantial liquidity cushion. This solid financial position allows the company to return capital to shareholders through share repurchases and regular dividend payments while maintaining sufficient flexibility to support business expansion.