Morgan Stanley Reports Q3 2026 Net Revenues of $20.3B and EPS of $3.03

Morgan Stanley Reports Strong Third Quarter 2026 Earnings

Morgan Stanley (NYSE: MS) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) disclosing financial results for the quarter ended September 30, 2026.

Key Financial Metrics

• Net Revenues: $20.34 billion, an increase of 11.6% compared to $18.22 billion in Q3 2025.
• Net Income Applicable to Morgan Stanley: $4.91 billion, compared to $4.61 billion in the prior-year period.
• Diluted Earnings Per Share (EPS): $3.03, up 8.2% from $2.80 in Q3 2025.
• Return on Tangible Common Equity (ROTCE): 22.6% (compared to 23.5% in Q3 2025).
• Return on Equity (ROE): 17.8% (compared to 18.0% in Q3 2025).
• Expense Efficiency Ratio: 67% (66% year-to-date).
• Book Value Per Share: $68.59; Tangible Book Value Per Share: $53.96.
• CET1 Capital Ratio (Standardized): 14.9%.

Segment Breakdown

1. Institutional Securities:

   • Net Revenues: $10.03 billion vs. $8.52 billion in Q3 2025.
   • Equities: $5.80 billion (+41% YoY), driven by strong client engagement globally and strength in Asia.
   • Investment Banking: $2.16 billion (+2% YoY), bolstered by advisory revenues from completed M&A activity in the Americas.
   • Fixed Income: $2.01 billion (-7% YoY), lower due to declines in credit securitized products and structured commodities.

2. Wealth Management:

   • Net Revenues: Record $9.07 billion vs. $8.23 billion in Q3 2025, supported by higher asset management fees and net interest income.
   • Pre-Tax Margin: 30.4%.
   • Asset Flows: $232.4 billion in net new assets and $80.5 billion in fee-based asset flows.
   • Fee-Based Client Assets: Reached $3.16 trillion.

3. Investment Management:

   • Net Revenues: $1.46 billion vs. $1.65 billion in Q3 2025.
   • Assets Under Management (AUM): $2.05 trillion, with positive long-term net flows of $15.8 billion.

Combined total client assets across Wealth and Investment Management reached $10.5 trillion.