Key Points
Bank of America has maintained remarkably consistent quarterly revenue, generating approximately $46 billion to $49 billion each quarter since late 2024.
Goldman Sachs has experienced greater revenue fluctuations, including a sharp decline in the first quarter of 2026.
Bank of America's diversified consumer banking and lending operations provide a relatively consistent revenue base, while Goldman Sachs is more exposed to fluctuations in investment banking and financial market activity.
Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) are two of Wall Street's biggest names, but their revenue trends reveal an interesting contrast.
While both benefit from lending, trading, and overall investment activity, their businesses respond differently to current market conditions. With inflation remaining stubborn and capital markets active, the question for investors is which business is better positioned for sustained growth.
Bank of America: Steady Quarterly Revenue Trends
Bank of America generates revenue through consumer banking, lending, wealth management, and investment banking services, serving individuals, businesses, and institutions worldwide.
The company's latest earnings highlight the strength of its diversified business model. In the third quarter of 2026, net interest income increased 8% year over year to $16.4 billion, supported by higher loan and deposit balances. Meanwhile, its wealth management division reported 13% revenue growth, benefiting from rising asset management fees and growing client assets. Together, these businesses provide multiple sources of income, helping Bank of America maintain relatively consistent revenue even as financial market conditions change.
Goldman Sachs: Recent Quarterly Revenue Volatility
Goldman Sachs earns revenue through investment banking, securities trading, asset management, and wealth management services, serving corporations, institutional investors, and individuals worldwide.
The company's latest earnings highlight its sensitivity to financial market activity and corporate dealmaking. In the third quarter of 2026, Goldman Sachs reported $18.7 billion in net revenue, supported by strong trading activity and demand for investment banking services. During the first nine months of 2026, investment banking fees increased 40% year over year, while equities revenue jumped 57%. These results demonstrate how Goldman Sachs can benefit from increased market activity, but also why its revenue can fluctuate more significantly than that of traditional banks when trading conditions and dealmaking slow.
Why Revenue Matters for Investors
Revenue here refers to the data provider's standardized income-statement revenue line item, which for banks in this dataset is defined as interest income plus non-interest income and is not net of interest expense, providing investors a fundamental top-line measure to evaluate how much money a business effectively generates.
Bank of America vs. Goldman Sachs Revenue over the last 8 quarters.
Bank of America and Goldman Sachs Quarterly Revenue
| Calendar quarter | Bank of America Revenue | Goldman Sachs Revenue |
|---|---|---|
| Q4 2024 | $47.0 billion (quarter ended Dec. 31, 2024) | $32.2 billion (quarter ended Dec. 31, 2024) |
| Q1 2025 | $47.0 billion (quarter ended March 31, 2025) | $31.6 billion (quarter ended March 31, 2025) |
| Q2 2025 | $46.7 billion (quarter ended June 30, 2025) | $31.3 billion (quarter ended June 30, 2025) |
| Q3 2025 | $48.2 billion (quarter ended Sept. 30, 2025) | $32.2 billion (quarter ended Sept. 30, 2025) |
| Q4 2025 | $49.7 billion (quarter ended Dec. 31, 2025) | $30.1 billion (quarter ended Dec. 31, 2025) |
| Q1 2026 | $47.9 billion (quarter ended March 31, 2026) | $17.2 billion (quarter ended March 31, 2026) |
| Q2 2026 | $49.4 billion (quarter ended June 30, 2026) | $38.4 billion (quarter ended June 30, 2026) |
| Q3 2026 | $47.8 billion (quarter ended Sept. 30, 2026) | $37.7 billion (quarter ended Sept. 30, 2026) |
Foolish Take
The current economic environment presents an interesting opportunity for both Bank of America and Goldman Sachs. Consumer spending remains resilient, corporate investment continues, and financial markets are active. However, persistent inflation and the prospect of higher interest rates for longer could affect each bank differently.
Bank of America stands to benefit from this environment. Higher interest rates can support lending income, particularly as existing loans and securities mature and are replaced at higher yields. With consumer spending holding up and loan balances continuing to grow, the bank has a solid foundation for generating income.
Goldman Sachs offers a different opportunity. Despite elevated interest rates, corporate dealmaking, financing activity, and securities trading remain strong. Market volatility can actually benefit its trading operations, while continued corporate investment creates opportunities for advisory and underwriting fees. The company's latest earnings demonstrate that higher rates and economic uncertainty don't necessarily translate into weaker capital markets.
For long-term investors, Bank of America looks like the more balanced choice. Its diversified sources of income offer greater consistency, while Goldman Sachs provides more upside if capital markets remain active and corporate dealmaking accelerates. Both are positioned to benefit from the current environment, but Bank of America's more predictable earnings foundation makes it the more compelling long-term holding.
Bank of America is an advertising partner of Motley Fool Money. RJ Fulton has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.