The Goldman Sachs upgrade to Buy from Hold by Freedom Broker on October 23, 2026, followed a strong year-over-year increase in third-quarter earnings. However, the broker also lowered its price target to $1,100 from $1,200, pairing a more favorable recommendation with a reduced target.
Key Takeaways
- Freedom Broker raised its recommendation to Buy while cutting its price target by $100.
- Goldman Sachs reported quarterly earnings of $17.01 per share and net revenue of $18.68 billion.
- Equities revenue drove growth, although overall revenue and earnings declined from the second quarter.
Table of Contents
- Goldman Sachs upgrade pairs Buy rating with target cut
- Equities revenue leads annual earnings growth
- Dividend declared as credit provisions rise
- Conclusion
Goldman Sachs upgrade pairs Buy rating with target cut
Freedom Broker's rating change came ten days after Goldman Sachs released results for the quarter ended September 30, 2026. The recommendation and price-target changes moved in different directions: the broker became more positive on the shares while lowering its target price.
Those are separate judgments, rather than evidence that the bank's earnings outlook has uniformly improved. The supplied details do not explain why Freedom Broker reduced the target, so the change should not be treated as a new company forecast.
| Item | Details |
|---|---|
| Annualized return on common equity | 18.7% in the third quarter of 2026. |
| Credit-loss provisions | $368 million, compared with $339 million a year earlier. |
| Operating expenses | $11.31 billion, up 20% year over year. |
| Third-quarter capital returned | $4.49 billion, comprising $3.00 billion of share repurchases and $1.49 billion of common dividends. |
Equities revenue leads annual earnings growth
Goldman Sachs' third-quarter 2026 earnings release reported net earnings of $5.29 billion. Diluted earnings per share rose to $17.01 from $12.25 a year earlier, while net revenue increased 23% to $18.68 billion.
Global Banking & Markets generated $13.46 billion of revenue, up 32% year over year. Within that business, equities revenue rose 72% to $6.44 billion, reflecting stronger financing and intermediation activity. Investment banking fees increased 21% to $3.22 billion, supported by advisory and underwriting activity.
Asset & Wealth Management added $5.05 billion of revenue, up 14%, as higher management and incentive fees outweighed weaker investment and private-banking revenue.
The annual gains contrast with a softer sequential performance. Total revenue fell 8% from the second quarter, and EPS declined from $20.98. Goldman Sachs also said its investment banking fee backlog decreased from the end of June and was slightly below its level at the end of 2025.
Dividend declared as credit provisions rise
Goldman Sachs' board declared a quarterly dividend of $5.00 per common share on October 12. Payment is scheduled for December 30, 2026, to shareholders of record on December 2.
The bank also reported higher credit provisions and operating expenses than a year earlier. Credit-loss provisions primarily reflected wholesale-loan impairments, while expense growth included higher transaction costs and compensation. These figures provide a more concrete view of costs and credit exposure than an unsupported judgment about dividend safety.
Conclusion
The Goldman Sachs upgrade follows substantial annual earnings growth, but the lower price target and sequential slowdown temper that picture. The next confirmed shareholder dates are the December 2 dividend record date and December 30 payment date.
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