Goldman Sachs (GS) Stock Forecast & Price Target

Goldman Sachs Group is viewed positively because its franchise combines durable leadership in global investment banking with a growing mix of more stable fee-based businesses, including wealth and asset management, which helped AWM generate $5.05 billion of revenue and $4.10 trillion of assets under supervision in 3Q26. Its core earnings power remains exceptional, with total net revenues of $18.68 billion, EPS of $17.01, ROE of 18.7%, and ROTE of 20.5%, while Equities and Advisory delivered standout growth and the firm continued to post strong capital returns. The balance sheet is well capitalized with a 12.4% CET1 ratio, shareholder-friendly buybacks and dividends, and tangible book value per share rising to $341.43, supporting the view that Goldman can compound value through cycles.

Goldman Sachs Group is facing a fundamental earnings deterioration, as Investments net revenues fell to $50.0 million from $441.0 million in the prior quarter and $342.0 million a year ago, while Platform Solutions net revenues dropped to $170.0 million from $221.0 million and $598.0 million. The weakness was driven by net markdowns in debt investments and Apple Card-related markdowns after the portfolio was transferred to held for sale in 4Q25, signaling that even its less cyclical businesses are not yet offsetting volatility elsewhere. At the same time, operating expenses rose to $11.31 billion, up 5.8% sequentially and 30% year over year, with macro risks, higher inflation, and policy uncertainty threatening client activity, capital markets demand, and profitability.