Softer FICC and Higher Expenses Weigh on Goldman's Q3 Momentum

Goldman Sachs' third-quarter outlook suggests pressure on Global Banking & Markets performance due to softer fixed-income trading and higher expenses, which may partly offset continued strength in investment banking. CEO David Solomon pointed out relatively softer activity in fixed income, currencies, and commodities at the Barclays 24th Annual Global Financial Services Conference on Sept. 16.

However, Solomon noted that equity trading has been very strong in the third quarter. The moderation in FICC follows a strong first half of 2026, during which Goldman generated $6.24 billion in IB fees, up 52% year over year, supported by robust advisory and underwriting activity.

The softer FICC backdrop is worth watching because trading remains a key contributor to Goldman's Global Banking & Markets revenues and provides earnings diversification, alongside investment-banking fees. Weaker fixed-income trading could reduce the incremental revenue support from Markets, though continued strength in equities should provide a partial cushion.