Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Firm Net Revenue | $20.3 billion | Not stated |
| Earnings Per Share | $3.03 | Not stated |
| Return on Tangible Equity | 22.6% | Not stated |
| Wealth Management Net New Assets | $232 billion | Not stated |
| Institutional Securities Revenue | $10 billion | up 18% year-over-year |
| Equities Revenue | $5.8 billion | up 41% year-over-year |
Guidance and outlook
- For the fourth quarter, we expect our tax rate to be slightly above the third quarter's tax rate.
- We expect a modest increase in Wealth Management net interest income in the fourth quarter, subject to rates and client behavior.
- Our full year guidance remains unchanged.
How management sounded
Positive (+5 on our -10 to +10 scale). Management delivered record wealth management results and strong institutional performance while maintaining a balanced perspective on the AI-driven capital expenditure cycle and geopolitical risks. Management sounded more upbeat than on 6% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
AI CapEx Cycle
Asked: Analysts asked about the sustainability of the AI CapEx super cycle and if it is overbuilt.
Answer: Management stated that hyperscaler CapEx is running at around $1 trillion a year and remains a critical generational shift, though they acknowledged moments of uncertainty and the need to act as a trusted adviser.
Wealth Management Funnel
Asked: Analysts asked about the sustainability of the $232 billion in net new assets and the IPO tail.
Answer: Management explained that the funnel is durable, with IPO flows often continuing beyond a single quarter as assets move into advice-based relationships.
Deposit Growth
Asked: Analysts asked about the robust deposit growth and its impact on funding.
Answer: Management noted the growth was a strategic choice to strengthen the bank, which will provide funding benefits over time as assets move into the bank.
Wealth Management Margins
Asked: Analysts asked if the conversion of workplace clients to advice will improve pretax margins.
Answer: Management confirmed that pretax margins will expand over time with scale, though they are focused on long-term investment rather than short-term margin targets.
What to watch before the next call
- The interaction between the two known unknowns: the acceleration of AI at the enterprise level and geopolitical risks.
- The finalization of the bank capital regulatory framework by regulators.
- The pace of IPO-related flows and their conversion into fee-based advisory relationships.
