Morgan Stanley (MS) Q4 2025 Earnings
How Did MS Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −0.86%.
Did MS Beat Earnings? Q4 2025 Results
Yes. Morgan Stanley reported Q4 2025 earnings of $2.68 a share on Jan 15, 2026, beating the $2.45 consensus estimate by 9.4%. Revenue was $17.9B against a $17.8B estimate.
Morgan Stanley closed Q4 2025 with a decisive beat, posting diluted EPS of $2.68 against a consensus estimate of $2.40, an 11.67% positive surprise, as the firm's Integrated Firm model continued to demonstrate its earnings power. Revenue came in at $17.89 billion, with net revenues rising 10% year-over-year despite a reported period-over-period decline of 31.1%, driven in large part by a standout performance in Institutional Securities, where investment banking revenues surged 47% to $2.41 billion on the back of accelerating M&A completions and a pickup in equity underwriting activity. Wealth Management added further ballast, attracting $122.30 billion in net new assets during the quarter alone and pushing total client assets to $7.38 trillion, keeping the firm firmly on track toward its $10 trillion client asset goal. With ROTCE reaching 21.8% for the quarter, <a href="https://247wallst.com/investing/2026/01/15/stock-market-live-january-15-ai-bank-earnings-lift-sp-500-voo-after-2-days-of-declines/">bank earnings lifting broader markets</a> in January, and management reiterating targets of 20%+ ROTCE and a 30% Wealth Management pre-tax margin, Morgan Stanley enters 2026 with considerable momentum.
- Investment banking revenues surged 47% YoY on higher M&A completions, IPOs, and event-related fixed income issuance
- Record Equity trading revenues driven by strong client activity and higher prime brokerage balances
- Wealth Management asset management revenues increased on elevated assets from higher markets and cumulative fee-based flows
- Wealth Management net new assets of $122.3 billion in Q4 and $356.3 billion for the full year
- Investment Management AUM grew 14% to $1.895 trillion on higher market levels and net inflows
- Expense efficiency ratio improved to 68% from 71%, demonstrating operating leverage
- Net interest income increased in Wealth Management from cumulative lending growth and balance sheet mix changes
“Morgan Stanley delivered outstanding performance in 2025. The Firm produced full-year revenues of $70.6 billion, EPS of $10.21 and a ROTCE of 21.6%. Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm. Total client assets in Wealth and Investment Management grew to $9.3 trillion, supported by over $350 billion in net new assets. Our Institutional Securities business served as a trusted advisor to clients as investment banking activity accelerated and global markets remained strong. The four pillars of the Integrated Firm – Strategy, Culture, Financial Strength and Growth – support our ability to drive long-term value for shareholders.”
Morgan Stanley CEO, on the earnings call
What Was Morgan Stanley's Outlook in Q4 2025?
Morgan Stanley has articulated firmwide strategic goals including: reaching $10 trillion+ in total client assets, maintaining ROTCE of 20%+, achieving a Wealth Management pre-tax margin of 30%, a firm expense efficiency ratio of 70%, and durable ISG wallet share gains. The firm highlighted accelerating M&A and IPO backlogs, opportunities in the institutionalization of credit markets, equitization of global markets, and cross-asset capital formation. Future Wealth Management growth areas include alternatives, private markets, tax-efficient investing, crypto and tokenization, family office solutions, OCIO, and tailored lending.
MS YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $17.9B | $26.0B | −31.1% |
| Net Income | $4.4B | $3.7B | +18.4% |
| Operating Income | $5.8B | $4.9B | +17.4% |
MS Revenue by Segment
MS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.