Morgan Stanley (MS) earnings Q3 2025

Morgan Stanley exceeded expectations in the third quarter, with earnings per share coming in at $2.80 compared to the expected $2.10. Revenue also outperformed, reaching $18.22 billion against the projected $16.7 billion.

The bank reported a 45% increase in profit from the previous year, totaling $4.61 billion, or $2.80 per share. Revenue saw a significant 18% rise, setting a record at $18.22 billion.

Following the positive earnings report, Morgan Stanley’s shares surged by almost 5% in premarket trading. Year-to-date, the stock had climbed approximately 24% by the close of trading on Tuesday.

The strong performance was attributed to robust activity in equities trading, investment banking, and wealth management. Wall Street trading desks experienced heightened levels of activity, while investment banking saw an increase in mergers and IPOs. Additionally, the wealth management division benefited from stocks reaching or approaching record highs.

Morgan Stanley’s equities trading revenue soared by 35% to $4.12 billion, surpassing analysts’ expectations by $720 million. The prime brokerage business, which caters to hedge funds, achieved record results due to increased activity across various business lines and regions.

Fixed income trading also saw an 8% increase to $2.17 billion, aligning closely with estimates.

Investment banking revenue experienced a substantial 44% jump from the previous year, reaching $2.11 billion, exceeding expectations by $430 million. The surge was attributed to a higher number of completed mergers, IPOs, and fixed income fundraising activities.

Wealth management revenue rose by 13% to $8.23 billion, surpassing expectations by $500 million, driven by rising asset levels and transaction fees.

Other major financial institutions, including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo, also reported earnings that exceeded analysts’ forecasts for both earnings and revenue.

This story is developing. Please stay tuned for updates.