Morgan Stanley Q3 2026: Equity Trading Surge Fuels Sixth Straight Beat
As seen on the 24/7 Wall St. homepage on October 14, 2026.
Equity trading revenue jumped 41% to $5.80 billion, carrying a sixth straight EPS beat and record Wealth Management revenues.
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Morgan Stanley's GAAP diluted EPS of $3.03 for Q3 2026 beat the consensus estimate, extending the firm's run of consecutive EPS beats to six quarters, a streak stretching back to Q4 2024.
Equity trading inside Institutional Securities generated $5.80 billion in revenue, up 41% year over year on elevated client engagement, with particular strength in Asia. Fixed Income trading slipped 7%, held back by weaker securitized products and commodities.
Wealth Management delivered record net revenues of $9.07 billion, up 10%, on asset management fees lifted by higher market levels. The division pulled in $232 billion in net new assets, with the firm noting over half was tied to IPO-related flows.
CEO Ted Pick highlighted the firm's return on tangible common equity of 22.6% as evidence that scale is translating into operating leverage. Morgan Stanley also repurchased common stock during the quarter and declared a quarterly dividend of $1.15 per share.
Net income rose 6.49% year over year to $4.91 billion as total assets expanded on corporate and secured lending growth. The firm flagged a provision for credit losses tied to corporate and commercial real estate loans, an area worth monitoring as the book grows.