The Goldman Sachs Group, Inc. Just Recorded A 10% EPS Beat: Here's What Analysts Are Forecasting Next

The Goldman Sachs Group, Inc. (NYSE:GS) just released its third-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.6% to hit US$15b. Goldman Sachs Group reported statutory earnings per share (EPS) US$12.25, which was a notable 10% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 18 analysts covering Goldman Sachs Group are now predicting revenues of US$61.5b in 2026. If met, this would reflect an okay 7.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to US$54.89. In the lead-up to this report, the analysts had been modelling revenues of US$60.7b and earnings per share (EPS) of US$53.73 in 2026. So the consensus seems to have become somewhat more optimistic on Goldman Sachs Group's earnings potential following these results.

Check out our latest analysis for Goldman Sachs Group

The consensus price target was unchanged at US$778, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Goldman Sachs Group, with the most bullish analyst valuing it at US$898 and the most bearish at US$625 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Goldman Sachs Group's rate of growth is expected to accelerate meaningfully, with the forecast 5.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. Goldman Sachs Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Goldman Sachs Group's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Goldman Sachs Group going out to 2027, and you can see them free on our platform here..

Even so, be aware that Goldman Sachs Group is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.