Morgan Stanley Q3 2026 earnings: EPS rises to $3.03 as equities revenue jumps 41%

Morgan Stanley earned $3.03 a share in the third quarter, up 8% from $2.80 a year earlier, as its equities business surged and wealth management posted record revenue, the firm said Wednesday in a regulatory filing.

Net revenue rose to $20.3 billion from $18.2 billion, and net income climbed to $4.9 billion from $4.6 billion. Return on tangible common equity was 22.6%, versus 23.5% a year ago.

The trading floor drove the quarter. Institutional Securities revenue rose to $10.0 billion from $8.5 billion, led by a 41% jump in equity net revenue to $5.8 billion on strength across businesses and regions, particularly Asia. Fixed income revenue fell 7% to $2.0 billion, and investment banking rose 2% as higher advisory fees offset weaker equity underwriting.

Wealth Management delivered record net revenue of $9.1 billion, up 10%, with a 30.4% pre-tax margin. The unit pulled in a record $232 billion of net new assets — just over half tied to IPO-related flows — plus $80 billion of fee-based flows.

Total client assets across wealth and investment management reached $10.5 trillion. Investment Management revenue slipped to $1.5 billion from $1.7 billion.

“Morgan Stanley reported another strong quarter,” Chairman and CEO Ted Pick said, pointing to the firm’s equity franchise and wealth flows.

Expenses rose with activity: compensation expense increased to $8.0 billion from $7.4 billion, and non-compensation expenses climbed to $5.7 billion from $4.8 billion. The firm set aside $148 million for credit losses, compared with none a year earlier.

By the numbers

• EPS: $3.03, up from $2.80
• Net revenue: $20.3 billion, up from $18.2 billion
• Equity net revenue: $5.8 billion, up 41%
• Wealth Management revenue: record $9.1 billion
• Net new assets: record $232 billion
• Standardized CET1 ratio: 14.9%

Sources

1. Morgan Stanley, Form 8-K (Item 2.02), Exhibit 99.1, Third Quarter 2026 Earnings Results, filed Oct. 14, 2026, accession 0000895421-26-000288.

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