Companies /Financial Services

Morgan Stanley

NYSE: MS Capital Markets
$215.37
â–² $1.29 (+0.60%) today
Markets open · 1:21pm ET

Q1 2025 Earnings

Reported Apr 11, 2025, 7:45am ET · SEC source
$2.60
Beat +18.59%
EPS · est. $2.19
$17.7B
Beat +7.17%
Revenue · est. $16.6B
+11.2%
Beating market
MS vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%−2%0+2%Apr 11Apr 11report 7:45am ETearnings+1.7%+0.5%
−4%−2%0+2%Apr 11Apr 11earnings+1.7%+0.5%
MS +0.5%S&P 500 +1.7%
−4%−2%0+2%Apr 11Apr 11report 7:45am ETearnings+1.6%+0.5%
−4%−2%0+2%Apr 11Apr 11earnings+1.6%+0.5%
MS +0.5%NASDAQ +1.6%
−2%0+2%+4%Apr 10Apr 17report 7:45am ETearnings+0.0%+1.9%
−2%0+2%+4%Apr 10Apr 17earnings+0.0%+1.9%
MS +1.9%S&P 500 +0.0%
−2%0+2%+4%Apr 10Apr 17report 7:45am ETearnings−0.6%+1.9%
−2%0+2%+4%Apr 10Apr 17earnings−0.6%+1.9%
MS +1.9%NASDAQ −0.6%
+1.44%
Day of report
+0.92%
Next session
−1.68%
One week
+21.20%
30 days

S&P 500 over the same 30 days: +10.05%.

Did MS Beat Earnings? Q1 2025 Results

Morgan Stanley kicked off 2025 with a record first quarter, posting earnings per share of $2.60 against a consensus estimate of $2.19, a beat of 18.59%, while revenue of $17.74 billion topped expectations by 7.17%. The headline numbers were driven in large part by a historic performance in Institutional Securities, where equity trading revenues surged 45% year-over-year to a record $4.13 billion, fueled by heightened market volatility and particular strength in prime brokerage, derivatives, and Asian markets. That momentum helped lift firm-wide net revenues 17% from a year ago, even as the reported year-over-year comparison reflects a -30.0% change against the structured data baseline. Return on tangible common equity climbed to 23.0% from 19.7%, underscoring the durability of Morgan Stanley's integrated model. Wealth Management contributed $7.33 billion in revenues, up 6%, while net new assets reached $93.80 billion, pushing total client assets across Wealth and Investment Management to $7.70 trillion. The results arrived as peers including Citigroup also reported trading-driven earnings strength in the quarter.

Key Takeaways
  • Record Equity trading revenues driven by strong client activity amid volatile trading environment, particularly in Asia, with outperformance in prime brokerage and derivatives
  • Higher completed M&A transactions driving advisory revenue growth
  • Strong fixed income underwriting on higher non-investment grade loan issuances
  • Wealth Management asset management revenues up 15% on higher asset levels and cumulative positive fee-based flows
  • Investment Management benefiting from higher average AUM and increased accrued carried interest in infrastructure funds
  • Strong FX trading in volatile environment and securitized products on higher lending revenues

“The Integrated Firm delivered a very strong quarter with record net revenues of $17.7 billion and EPS of $2.60, and an ROTCE of 23.0%. Institutional Securities strong performance was led by our Markets business with Equity reporting a record $4.1 billion in revenues. Total client assets of $7.7 trillion across Wealth and Investment Management were supported by $94 billion in net new assets. These results demonstrate the consistent execution of our clear strategy to drive durable growth across our global footprint.”

Morgan Stanley CEO, on the earnings call

MS YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$7.0B$14.0B$21.0B$25.3B$17.7BRevenue$4.4B$5.5BOperating Income$3.4B$4.3BNet Income
$0$7.0B$14.0B$21.0BRevenueOperating IncomeNet Income

MS Revenue by Segment

Institutional Securities$9.0B+28.0%
Wealth Management$7.3B+6.0%
Equity Trading$4.1B+45.0%
Wealth Management Asset Management
Fixed Income Trading$2.6B+5.0%
Investment Banking$1.6B+8.0%
Wealth Management Net Interest Income
Investment Management$1.6B+16.0%

MS Revenue by Geography

Americas$13.1B+13.0%
Asia$2.3B+35.0%
EMEA$2.3B+25.0%

Figures from SEC filings and company reports. Not investment advice.