The bank reported a record quarterly revenue of $18.2 billion, surpassing forecasts of $16.7 billion, while profit jumped to $4.6 billion, or $2.80 per share, well above analysts’ estimates of $2.10. Shares rose 6.7% following the announcement, marking a 32% gain since the start of the year.
Investment banking revenue surged 44% to $2.11 billion, supported by major transactions such as Union Pacific’s $85 billion acquisition of Norfolk Southern, the largest global deal of the year. Equity underwriting climbed 80%, with Morgan Stanley participating in high-profile IPOs including Figma and Klarna. Fixed income underwriting also rose 39%, driven by increased loan issuances.
Equities trading revenue soared 35% to $4.12 billion as the S&P 500 reached new highs, highlighting strong performance in the prime brokerage segment. Wealth management revenue grew 13% to a record $8.2 billion, with assets under management nearing $8.9 trillion, close to the company’s $10 trillion target, and a pre-tax margin of 30.3%.
CEO Ted Pick and CFO Sharon Yeshaya emphasized that the investment banking pipeline is at “all-time highs,” with optimism about surpassing 2021’s deal volume records. The bank’s leadership also noted favorable macroeconomic conditions, lower borrowing costs, and regulatory relief under the Trump administration as key contributors to the resurgence in corporate activity.
Citigroup analyst Keith Horowitz described the results as “a great quarter for MS with beats across the board,” reflecting broad strength across business lines and a positive market response.
