Total revenue from trading fell 2.4 percent to $3.36 billion, the lowest in five quarters.
Revenue from fixed-income securities, currencies and commodities trading rose just 1.3 percent to $1.69 billion.
"The operating environment was mixed, with client activity challenged in certain market-making businesses...," Chief Executive Lloyd Blankfein said in a statement.
Goldman's trading results were in sharp contrast to those from JPMorgan Chase & Co (JPM.N) and Bank of America (BAC.N), which reported a rise in trading revenue.
Shares of Goldman were down 3 percent in premarket trading.
Goldman has historically relied more on trading than other big banks, but has been trying to shift to stable businesses such as investment management.
Earnings per share rose to $5.15 from $2.68. (bit.ly/2nYyF63) Analysts on average had expected earnings of $5.31 per share, according to Thomson Reuters I/B/E/S.
Investment banking revenue, which includes M&A, debt underwriting and stock underwriting, rose 16.4 percent to $1.7 billion.
Total operating expenses rose 15.2 percent to $5.49 billion.
Morgan Stanley (MS.N), Goldman's traditional rival, reports earnings on Wednesday.
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