Goldman Sachs Sees $600 Billion of U.S. Equity Issuance in 2027 and Moves Back to Overweight Stocks

Goldman Sachs expects U.S. companies to raise about $600 billion through stock sales in 2027, according to an October 9 report by strategist Ben Snider. The forecast splits into about $175 billion of IPOs and $425 billion of follow-on offerings, convertibles and SPACs. It follows a record pace this year: about $431 billion had been issued so far in 2026, up 98% from a year earlier, and Goldman expects the full year to reach $675 billion, above the $540 billion record set in 2021.

Artificial intelligence is a central driver. AI-related follow-on offerings raised about $65 billion in 2026, or 45% of U.S. follow-on issuance, and Goldman estimates that about $1.7 trillion of shares could become eligible for sale in 2027 as lockups expire. Eligible for sale is not the same as sold, so the lockup figure is an upper bound on new supply rather than a forecast of selling.

Separately, Goldman strategist Christian Mueller-Glissmann moved back to an overweight position on equities over three months on Monday and upgraded bonds to overweight over 12 months, saying lower valuations have improved the setup heading into third-quarter earnings. "We believe bonds should gradually move from portfolio headwind to hedge," the note said. The bank still favors equities over credit and remains overweight cash. Watch whether IPO and follow-on calendars hold up through the fourth quarter, and how the equity call fares as bank earnings begin on Tuesday.