Morgan Stanley Q2 2026 Earnings Beat
Morgan Stanley announced its second‑quarter 2026 results on 15 July 2026, delivering earnings per share of $3.46, well above the consensus estimate of $2.93. Total revenue for the quarter was $21.3 billion, surpassing the $19.62 billion forecast.
Equities sales and trading generated $6.30 billion, considerably higher than the $4.47 billion analysts expected. Institutional investment‑banking revenue was $2.44 billion versus the $2.20 billion consensus, while advisory revenue reached $798 million. Both equity and fixed‑income underwriting revenues also exceeded forecasts, though specific amounts were not disclosed.
The strong performance was underpinned by robust merger‑and‑acquisition activity, with announced deal value of $2.8 trillion in the first half of 2026, representing a 48 % increase from the prior year and the highest first‑half total recorded by LSEG since it began tracking in 1980. During the quarter Morgan Stanley advised Fertitta Entertainment on its $17.6 billion acquisition of Caesars Entertainment, acted as lead underwriter for SpaceX’s $2 trillion market debut and for chipmaker Cerebras’ initial public offering, and served as joint book‑running manager for Alphabet’s recent equity capital raise.
Return on equity for the quarter was 20.7 %, above the 17.4 % estimate, and return on tangible equity was 26.6 % versus the expected 22.1 %. The bank’s standardized Common Equity Tier 1 (CET1) ratio remained at 14.8 %, in line with forecasts. Assets under management grew to $2.00 trillion, exceeding the $1.94 trillion consensus, and the expense‑efficiency ratio improved to 65 % compared with the projected 68.1 %.
Morgan Stanley’s shares rose approximately 1 % in pre‑market trading following the release.