Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) is entering a new phase of operational transformation dubbed “OneGS 3.0,” focused on artificial intelligence and centralized efficiency, following what Jefferies described as a “constructive” third quarter marked by surging deal activity and durable trading momentum.
Jefferies said it raised its 2026 earnings estimate for Goldman Sachs by about 1% to $54.45 a share, citing improving capital markets conditions and the firm’s deepening pipeline of investment banking mandates.
“Investment banking backlogs are at the highest levels in three years,” the analysts noted, with sponsor activity tracking 40% higher year-on-year.
The rise in investment banking revenue coupled with similar gains in debt capital markets and leveraged finance activity led Jefferies to label Goldman the top ranked advisor for M&A.
Jefferies said management highlighted “continued strong customer engagement” across markets and that momentum in Goldman’s Asset & Wealth Management division “is firing on all cylinders.” Revenue from that segment grew around 11% year-on-year, excluding a one-time benefit, while third-party alternatives fundraising reached $33 billion in the quarter.
The bank raised its full-year fundraising guidance to $100 billion, implying a similar pace in the fourth quarter.
The firm added that Goldman’s on-balance-sheet investments are showing signs of improvement, offering “more margin stability going forward.” Unrecognized incentive fee balances stood at $4.6 billion, supported by $393 billion of third-party alternatives commitments since 2019.
Looking ahead, Jefferies said Goldman’s new “OneGS 3.0” initiative aims to use AI to enhance efficiency and growth across six key areas: client experience, profitability, productivity, scalability, employee experience, and risk management.
“In the near term, we expect some degree of related headcount management through year-end,” Jefferies wrote.
Further details and quantification of the OneGS 3.0 strategy are expected during the fourth quarter.