Morgan Stanley
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.86%.
Did MS Beat Earnings? Q4 2025 Results
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
Forward Guidance & Outlook
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
MS Revenue by Segment
MS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.