Morgan Stanley
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.60%.
Did MS Beat Earnings? Q1 2026 Results
Morgan Stanley capped a record quarter to open 2026, posting earnings per share of $3.43 and net revenues of $20.58 billion as the firm extended its streak of beating consensus EPS estimates to four consecutive quarters. Net revenues rose 16% year-over-year while net income climbed 29% to $5.57 billion, pushing return on tangible common equity to 27.1% from 23.0% a year earlier. The primary engine behind the blowout results was Institutional Securities, where a powerful combination of equity trading and investment banking drove segment revenues up 19% to $10.72 billion; equity trading alone generated $5.15 billion, up 25%, fueled by exceptional prime brokerage and derivatives activity, while advisory revenues surged 36% on a wave of completed M&A deals. Wealth Management added further ballast, with net revenues of $8.52 billion, $7.34 trillion in total client assets, and $118.40 billion in net new assets gathered during the quarter, underscoring the breadth and durability of Morgan Stanley's earnings power heading into the rest of the year.
- Robust client engagement and increased market volatility driving Institutional Securities results
- Strong M&A completion activity, particularly in the Americas, driving advisory revenues up 74% YoY
- Record Equity trading revenues driven by outperformance in prime brokerage and derivatives
- Commodities strength from energy market volatility boosting Fixed Income trading
- Higher market levels and cumulative fee-based flows driving Wealth Management asset management revenues
- Lending growth and higher average sweep deposits increasing net interest income
- $118 billion in net new assets and $54 billion in fee-based asset flows in Wealth Management
- Improved expense efficiency ratio of 65% vs 68% a year ago
- Lower effective tax rate of 19.6% from higher share-based compensation tax benefits
“Morgan Stanley reported a record quarter. Strong execution resulted in net revenues of $20.6 billion, EPS of $3.43 and a ROTCE of 27.1%. Institutional Securities benefited from robust client engagement and strength globally. Wealth Management demonstrated continued momentum, with net new assets of $118 billion and fee-based asset flows of $54 billion. These results affirm the capabilities of our Integrated Firm as we deliver a higher plane of operating performance.”
Morgan Stanley CEO, on the earnings call
MS YoY Financials
MS Revenue by Segment
MS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.