Goldman Sachs CEO Foresees Positive Economic Outlook
In a recent third-quarter earnings call, Goldman Sachs CEO, David Solomon, shared his insights on the U.S. economy amidst a more stable trade policy environment than earlier this year. Solomon’s perspective on the economy has fluctuated in 2025, but he now sees the tide rising for businesses as they move forward with long-term decisions, including mergers and acquisitions (M&As).
Goldman Sachs reported third-quarter earnings that surpassed Wall Street’s expectations, boosted by rising net revenues in all its major businesses. According to Solomon, Goldman Sachs is not the only company benefiting from the more “constructive” political and economic conditions. He stated that many businesses have successfully navigated and adapted to the current state of affairs, focusing more on long-term strategic decision-making in a supportive regulatory environment.
A Shift in Business Sentiment
Earlier this year, Solomon expressed optimism about the Trump administration’s deregulatory agenda, which he believed would propel Goldman Sachs’ businesses. However, the introduction of steep tariffs against almost 90 countries by President Trump in April resulted in a wave of uncertainty, leading Solomon to express concerns about the increasing risk of a recession.
However, the current situation seems to have alleviated these fears. Solomon predicts a significant boost to M&As due to the more stable climate for business decisions. He expects a “constructive” M&A environment through the end of 2025 and into 2026, indicating that the economic cycle is improving.
Goldman Sachs’ Own M&A Activity
During the earnings call, Solomon also highlighted Goldman Sachs’ recent M&A activities. The investment giant just announced a deal to acquire Industry Ventures, a San Francisco-based venture capital firm with $7 billion of assets under supervision. The deal, valued at $665 million at closing, could increase by up to $300 million based on the firm’s performance by 2030. Solomon expressed that this acquisition complements Goldman Sachs’ secondaries investing franchise and could drive new opportunities, particularly in investment banking and wealth management.
Third Quarter Earnings Surpass Expectations
Goldman Sachs’ third-quarter earnings exceeded many of Wall Street’s forecasts. Earnings per share for the firm rose to $12.25, well above analysts’ estimates of $11.10, and net income climbed to $4.10 billion, a 37% increase from the same period last year. Revenue for the quarter reached $15.18 billion, a 20% increase from last year, with Goldman Sachs attributing this growth to “higher net revenues across all segments”.
Even Goldman Sachs’ venture into consumer banking, which previously faced challenges, showed improvement. Net revenues for the segment known as Platform Solutions came out to $670 million, a 71% increase from the same period last year.
Looking Towards the Future
Despite the past challenges faced by Goldman Sachs, particularly in the realm of consumer banking, Solomon remains optimistic about the future. As the uncertainty around tariffs recedes and the Trump administration continues its focus on deregulation, Goldman Sachs anticipates brighter prospects for itself and its clients. “I absolutely think that the regulatory direction of travel is improving our competitive position significantly,” Solomon said.
These insights, based on Solomon’s expertise and the company’s performance, provide a trustworthy and authoritative perspective on the current economic environment and future trends in the business world. It remains to be seen how these predictions will play out, but the current outlook appears promising.
Source: Here
