Morgan Stanley Reports 27% Revenue Growth to $21.3 Billion in Quarterly Results

Morgan Stanley reported significant financial growth in its quarterly results for the period ending June 30, 2026, with net revenues reaching $21.3 billion, a 27% increase from $16.8 billion in the same quarter of the previous year. The firm’s net income applicable to shareholders was $5.6 billion, up 58% from $3.5 billion year-over-year, resulting in diluted earnings per share of $3.46, a 62% increase compared to $2.13 in the prior year. For the first half of 2026, net revenues totaled $41.9 billion, a 21% rise from $34.5 billion in the first half of 2025, while net income applicable to Morgan Stanley was $11.1 billion, reflecting a 42% increase from $7.9 billion.

The firm’s performance was bolstered by strong results across its business segments. Institutional Securities generated $11.0 billion in net revenues, primarily driven by increased activity in equity trading and higher investment banking revenues. Wealth Management reported $8.9 billion in net revenues, benefiting from strong asset management revenues and increased client activity, which led to a pre-tax margin of 30.5%. Investment Management contributed $1.6 billion in net revenues, largely due to higher average assets under management (AUM) and positive long-term net flows of $7.5 billion.

Morgan Stanley's operational metrics also showed positive trends, with total client assets rising to $10.1 trillion, up from $9.3 trillion at the end of 2025. The firm added $148 billion in net new assets during the quarter, with fee-based assets increasing by $39 billion. The firm maintained a workforce of approximately 83,000 employees, consistent with the previous period. The firm’s capital ratios remained strong, with a Common Equity Tier 1 capital ratio of 14.9% as of June 30, 2026, slightly down from 15.0% at the end of 2025.

Strategically, Morgan Stanley completed the acquisition of Morgan Stanley Europe SE and merged its Fixed Income business into Morgan Stanley Bank, N.A. in early 2026, enhancing its operational capabilities. The firm also announced a multi-year share repurchase program of up to $20 billion, reflecting its commitment to returning capital to shareholders. Looking ahead, Morgan Stanley anticipates continued growth driven by favorable market conditions, although it remains vigilant regarding potential economic uncertainties and geopolitical risks that could impact its operations.