Morgan Stanley Q3 2026 Earnings Overview
Morgan Stanley (NYSE: MS) reported third‑quarter 2026 results that beat analyst expectations, with the stock trading up about 0.7 % in pre‑market following the release.
Adjusted earnings per share were $3.03, surpassing the consensus estimate of $2.94. Net revenues reached $20.3 billion, exceeding the $20.0 billion forecast and representing a 12 % increase from $18.2 billion in the same quarter a year earlier.
The Institutional Securities division drove the headline performance; equity trading revenue climbed 41 % year‑over‑year to $5.8 billion, reflecting strong client engagement and particularly robust activity in Asia.
Wealth Management generated a record $9.1 billion in revenue, up 10 % YoY, and attracted $232 billion of net new assets together with $80 billion of fee‑based flows during the quarter.
Investment Banking revenue rose 2 % to $2.2 billion, supported by higher completed M&A activity in the Americas.
Net income applicable to Morgan Stanley was $4.9 billion, compared with $4.6 billion a year ago. The firm posted a return on tangible common equity (ROTCE) of 22.6 % and maintained an expense efficiency ratio of 67 %.
Fixed Income trading revenues declined 7 % to $2.0 billion, primarily due to lower credit and commodities trading. Investment Management revenues fell 12 % YoY to $1.5 billion, driven by a reversal of accrued carried interest related to certain investments in one of its private funds.
The bank’s Standardized Common Equity Tier 1 (CET1) capital ratio stood at 14.9 %.
Ted Pick, Chairman and Chief Executive Officer, said: “Morgan Stanley reported another strong quarter with net revenues of $20.3 billion, EPS of $3.03 and a ROTCE of 22.6 %. The Integrated Firm is connecting the full breadth of Morgan Stanley to deliver differentiated solutions and advice for our clients.”