Goldman Sachs Group, Inc. (NYSE: GS) had a pretty good quarter. The stock, however, did not have a pretty good Wednesday.

Shares fell 2.13% to $872.95, and the culprit was less about Goldman and more about the weather. September consumer prices rose 3.7% year over year, hotter than the 3.6% forecast, and core inflation topped expectations too. That combination raised the likelihood of another Federal Reserve rate hike and pushed Treasury yields higher, which is the kind of thing that makes bank stocks sweat.

Then came the analysts, who trimmed their price forecasts even while praising the quarter.

Analysts Trim Goldman Sachs Price Forecasts

On Tuesday, RBC Capital Markets analyst Gerard Cassidy lowered his price forecast to $1,010 from $1,220 while keeping a Sector Perform rating.

To be clear, Cassidy wasn't sour on the business. He highlighted Goldman's strong capital markets performance. Revenue rose 23% year over year to $18.7 billion, while adjusted earnings of $18.01 per share blew past RBC's $13.04 estimate and the $12.86 consensus.

Equities revenue surged 72% to $6.4 billion, driven by record financing revenue. Investment banking fees increased 21% to $3.2 billion, though the deal backlog declined sequentially. Asset and wealth management revenue climbed 14% to $5.1 billion, supported by record management fees and $97 billion in long-term net inflows.

Stronger Earnings Outlook Despite Lower Valuation

Cassidy also raised his 2026 earnings estimate to $72.45 from $65.10 and his 2027 estimate to $74 from $72.39. Those upward revisions reflect stronger revenue expectations, partly offset by higher expenses. The lower price target, meanwhile, incorporates RBC's return-on-equity assumptions, projected book value and Treasury yields.

Separately, on Wednesday, Keefe, Bruyette & Woods analyst Christopher McGratty maintained a Market Perform rating on Goldman Sachs but reduced his price forecast to $1,100 from $1,130.

So the quarter was strong, the outlook got better, and the targets still came down. That's the market's way of saying the numbers are fine but the backdrop is doing the talking.

GS Price Action: Goldman Sachs Group shares were down 2.13% at $872.95 at the time of publication on Wednesday, according to market data.