David Solomon flagged weaker FICC results and a $500 million jump in quarterly expenses, sending Goldman shares down as much as 4%
Goldman Sachs CEO David Solomon delivered a double dose of bad news on September 16: the bank’s fixed-income trading unit is underperforming, and costs across the firm are climbing fast. The combination sent Goldman’s stock sliding as much as 4%, dragging broader bank stocks along for the ride.
Solomon said the fixed-income, currencies, and commodities division, known internally as FICC, has come in softer during the third quarter compared to prior periods. At the same time, non-compensation expenses are projected to jump more than $500 million quarter-over-quarter, fueled by heightened client activity and accelerated technology investments.
A tale of two trading desks
The weakness in FICC stands in sharp contrast to Goldman’s equities trading division, which Solomon described as notably strong.
FICC revenue surged 32% year-over-year in Q2 2026, a quarter that looked like a vindication of Goldman’s trading prowess. But Q1 told a different story, with FICC revenue dropping 10% year-over-year to $4.01 billion, partly blamed on geopolitical instability tied to the ongoing Iran conflict.
Solomon also flagged a likely slowdown in investment banking activity for Q3, a reversal from the strong deal-making momentum the bank enjoyed in the prior quarter.
How Goldman stacks up against rivals
JPMorgan Chase is projecting mid-to-high teens percentage growth in trading revenue for Q3 2026. Bank of America, meanwhile, is forecasting relatively flat results, with its own fixed-income performance looking lackluster.
Solomon pointed to the remaining weeks of September as crucial for determining where Q3 ultimately lands.
The expense problem compounds things
A $500 million quarter-over-quarter increase in non-compensation costs arrives at an inopportune time. Goldman attributed the spending surge to two drivers: more client activity requiring operational support, and stepped-up technology investments.
The 4% stock decline suggests investors are doing that math in real time.
