Goldman Sachs Raises Equity Outlook, Upgrades Bonds Ahead of Q3 Earnings

By EC Assets · Published 12 October 2026

Goldman Sachs has adopted a more bullish stance on equities, upgrading its outlook ahead of the third quarter earnings season. The firm also upgraded bonds. Goldman Sachs is leaning more heavily into stocks for the remainder of the year. The firm's broader outlook for the market remains constructive. Goldman Sachs forecasts S&P 500 earnings per share (EPS) of $375 for 2026, marking a 36% increase from 2025. It projects S&P 500 EPS to reach $415 in 2027. The year-end 2026 S&P 500 target is 8,000. Goldman Sachs expects AI spending to drive another strong S&P 500 earnings season. Goldman Sachs itself is scheduled to report its third quarter 2026 results. Strong equity trading and investment banking revenues are likely to support growth for the firm. However, softer fixed income, currencies, and commodities (FICC) activity and higher expenses pose risks to its results. Goldman Sachs remains a buy, supported by robust deal activity, high market volatility, and strong capital markets performance. It benefits from leading high-profile IPOs like SpaceX and major equity transactions. US equity investors will monitor mega-cap banks' earnings, inflation data, and crude oil moves this week. They will also watch surging government bond yields. The market has overall become cheaper. Investors will be watching for the release of Q3 earnings reports. September's inflation data will also be a focus. This article is intended for informational purposes only. It does not constitute investment advice.