Morgan Stanley is a global financial services firm based in New York City. It was founded in 1935. The company operates in over 40 countries worldwide. It serves corporations, governments, institutions, and individuals.
Its business has three main segments: Institutional Securities, Wealth Management, and Investment Management. Institutional Securities includes investment banking, trading, and capital markets. Wealth Management offers financial planning and advisory services. Investment Management handles assets across equities, fixed income, and alternatives. It earns fees based on assets under management.
Morgan Stanley focuses on innovation and client service. It aims to deliver long-term value and sustainable growth. The firm maintains strong capital ratios and returns capital to shareholders. It pays dividends and repurchases stock regularly.
Morgan Stanley Fiscal Q3 2025
Morgan Stanley (MS) reported strong 3Q results, with net revenues rising to $18.2 billion from $15.4 billion a year earlier. Net income reached $4.6 billion, or $2.80 per share, up from $3.2 billion and $1.88 per share last year.
Both revenue and earnings per share exceeded forecasts, and the firm posted a return on tangible common equity of 23.5%.
Highlights:
- Net revenues reached a record $18.2 billion, with strong performance across all business areas and regions
- Return on tangible common equity (ROTCE) was 23.5%
- Year-to-date expense efficiency ratio was 69%, showing solid operating leverage
- Institutional Securities earned $8.5 billion in revenue, driven by strong Equity results and a rebound in Investment Banking
- Fixed Income net revenues grew 8%
- Equity net revenues surged 35%
- Investment Banking net revenues jumped 44%
- Wealth Management posted $8.2 billion in net revenue which rose 13%
- Investment Management generated $1.7 billion in revenue, surge 13%, supported by higher asset management fees long-term net flows
- The firm repurchased $1.1 billion in common stock during the quarter
- A $1.00 quarterly dividend per share was declared, payable on November 14, 2025 to shareholders of record as of October 31, 2025
Board Statements
The Chairman and Chief Executive Officer Ted Pik, stated that the firm delivered an outstanding quarter, with strong performance across all global business segments.
Strategic execution led to record revenues of $18.2 billion, earnings per share of $2.80, and a return on tangible common equity of 23.5%. Wealth Management achieved a 30% pre-tax margin and attracted $81 billion in net new assets.
Institutional Securities benefited from strength in the Equity business and a rebound in Investment Banking activity. Total client assets across Wealth and Investment Management reached $8.9 trillion. The firm remains focused on generating durable growth and delivering long-term value for shareholders.
Impact on the Market
Morgan Stanley’s stock (MS) rose 4.5% after the firm reported better-than-expected third-quarter earnings.
Net revenues reached a record $18.2 billion, and earnings per share climbed to $2.80, both beating analyst forecasts.
The strong results were driven by significant growth in investment banking (up 44%), equity trading (up 35%), and wealth and investment management (each up 13%).
The firm also posted a return on tangible common equity of 23.5% and maintained solid operating efficiency. These results boosted investor confidence and drove the stock higher.
