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Morgan Stanley (MS) Q3 2026 Earnings Report
MS Q3 2026 EPS Results
- Actual EPS
- $3.03
- Consensus EPS
- $2.93
- Beat/Miss
- Beat by +$0.10
- One Year Ago EPS
- $2.80
MS Q3 2026 Revenue Results
- Actual Revenue
- $33.28B
- Expected Revenue
- $19.93B
- Beat/Miss
- Beat by +$13.35B
- YoY Revenue Growth
- +6.62%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/14/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 14, 2026
Morgan Stanley's next earnings date is estimated for January 14, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive overall. Morgan Stanley reported record or near-record performance across firmwide results, Wealth Management, client assets, net new assets, fee-based flows, equities, and deposits, while highlighting robust pipelines, continued AI and technology investment, operating leverage, and a strong capital position. The main challenges were slower market activity later in the quarter, geopolitical and interest-rate uncertainty, lower equity underwriting and selected fixed income results, credit provisions, a modest decline in net interest income, and delays in sponsor activity. Management remained confident in the firm's long-term growth opportunities and ability to execute through different market environments.
For the fourth quarter, Morgan Stanley expects a tax rate to be slightly above the third quarter's tax rate, a modest increase in net interest income, subject to rates and client behavior, and full year guidance remains unchanged; net interest income is expected to expand over next year, largely on the back of loan growth, while the pretax margin will expand over time with scale. Management said AI hyperscaler CapEx is running at around $1 trillion a year, could be 1 trillion 2 or a trillion 4 or trillion, and could remain at a run rate that is plus or minus $1 trillion over the course of 5, 10 years; US nominal GDP growth is 5% to 6%, and AI contributes 50, 70 basis points of real GDP in The US.
- Strong Firmwide Third-Quarter ResultsMorgan Stanley reported third-quarter firmwide revenue of $20.3 billion, EPS of $30.03 as cited by Ted Pick and $3.03 as cited by Sharon Yeshaya in the transcript, and a return on tangible equity of 22.6%. The quarter marked the fifth consecutive quarter with ROTCE above 20%.
- Record Wealth and Investment Management Client AssetsTotal client assets across Wealth and Investment Management increased by $400 billion during the quarter to a record $10.5 trillion.
- Record Wealth Management Growth MetricsWealth Management delivered record revenue of $9.1 billion, pretax profit of $2.8 billion, net new assets of $232 billion, and fee-based flows of $80 billion. The pretax margin was 30.4%.
- Sustained Net New Asset and Fee-Based Flow MomentumDuring the first nine months of the year, Wealth Management generated roughly half a trillion dollars of net new assets and approximately $175 billion of fee-based flows. Since the E*TRADE acquisition six years ago, Morgan Stanley has added more than $2 trillion of net new assets.
- Large Wealth Management PlatformMorgan Stanley reported $8.4 trillion in Wealth Management client assets and nearly 21 million relationships. Adviser retention was reported at above 99%.
- Strong Institutional Securities Revenue GrowthInstitutional Securities revenue was $10 billion, up 18% year-over-year, driven by the leading equities franchise and a pickup in advisory.
- Outstanding Equities PerformanceEquities revenue was $5.8 billion, increasing 41% year-over-year, with growth across products and across Asia. Prime brokerage benefited from higher average client balances, derivatives results increased on higher early-quarter client activity and strong risk management, and cash results rose on increased client volumes.
- Investment Banking Revenue and Pipeline StrengthInvestment banking revenue was $2.2 billion, up 2% year-over-year, reflecting strength in the Americas and Asia. Advisory revenue was $887 million, equity underwriting revenue was $525 million, and fixed income underwriting revenue was $747 million. Pipelines remained robust and diversified across products, sectors, and regions.
- Healthy Strategic and Corporate ActivityManagement said boardroom dialogue remained strong, strategic activity remained healthy, and corporate activity reflected ongoing corporate investment, portfolio repositioning, and capital allocation priorities. Pent-up demand, productivity catalysts, and a more constructive regulatory backdrop support the stated favorable outlook for investment banking activity.
- Asset Management Growth and Long-Term InflowsAsset Management revenue grew 16% year-over-year to $5.5 billion, benefiting from higher markets and the cumulative impact of robust fee-based flows. Investment Management reported inflows of $15.8 billion, with Parametric and fixed income contributing to long-term flows.
- Healthy Transactional and Alternative-Sales ActivityTransactional revenue was $1.2 billion, up 6% year-over-year excluding the prior year's DCP benefit. Retail engagement remained healthy, and alternatives delivered another quarter of record sales.
- Deposit and Lending GrowthBank lending balances increased $5 billion sequentially, driven by securities-based lending and mortgages. Total deposits increased nearly $30 billion sequentially to $465 billion. Management said the bank is being used more strategically as a source of funding and that funding benefits are expected to begin emerging next year.
- Expected Net Interest Income GrowthAlthough fourth-quarter net interest income is expected to increase modestly subject to rates and client behavior, management expects NII to expand next year, largely on the back of loan growth.
- Technology and AI InvestmentMorgan Stanley continues to invest across its technology stack and use AI tools to support infrastructure, business growth, productivity, and employees. Management cited applications in reconciliation, spreadsheet and manual-process automation, equities sales tools, and broader digital capabilities across Wealth Management and Institutional Securities.
- AI Ecosystem OpportunityManagement said hyperscaler capital expenditures are running at around $1 trillion annually and that Morgan Stanley is advising clients across chips, data centers, power providers, public and private financing, and the broader AI ecosystem. The firm described itself as 'double overweight' on the AI opportunity and said it is a top priority.
- Broad Wealth Management Funnel and Advice OpportunitiesManagement highlighted the combination of self-directed, workplace, and adviser-led channels. IPO-related flows contributed just over half of overall net new assets, while corporate retirement mandates and assets held away provide additional opportunities to build advice-based relationships.
- Operating Leverage and Long-Term Margin OpportunityThe year-to-date firm efficiency ratio was 66%, with strong revenues driving operating leverage. Management expects Wealth Management's pretax margin to expand over time with scale and emphasized that investments are being managed for long-term, rather than quarter-by-quarter, results.
- Strong Capital and Balance-Sheet PositionMorgan Stanley reported 300 basis points of excess CET1 capital, total spot assets of $1.7 trillion, standardized risk-weighted assets of $590 billion, and a standardized CET1 ratio of 14.9%. The firm repurchased $1.5 billion of common stock during the quarter.
- Global and Integrated Markets CapabilitiesManagement emphasized the integrated solution across equities, fixed income, derivatives, prime brokerage, investment banking, and capital markets, supported by global capabilities in the United States, Europe, Hong Kong, Tokyo, Seoul, India, and other markets.
- Continued Fixed Income InvestmentManagement described the fixed income business as a world-class business generating approximately $2 billion per quarter and said Morgan Stanley will continue to invest in the business over time.
MS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 14, 2027 | 2026 (Q4) | 2.96- | 2.68 | ― | ― |
| Oct 14, 2026 | 2026 (Q3) | 2.933.03 | 2.8 | 8.21% (+0.23) | |
| Jul 15, 2026 | 2026 (Q2) | 2.933.46 | 2.13 | 62.44% (+1.33) | |
| Apr 15, 2026 | 2026 (Q1) | 3.023.43 | 2.6 | 31.92% (+0.83) | |
| Jan 15, 2026 | 2025 (Q4) | 2.432.68 | 2.22 | 20.72% (+0.46) | |
| Oct 15, 2025 | 2025 (Q3) | 2.102.80 | 1.88 | 48.94% (+0.92) | |
| Jul 16, 2025 | 2025 (Q2) | 1.982.13 | 1.82 | 17.03% (+0.31) | |
| Apr 11, 2025 | 2025 (Q1) | 2.212.60 | 2.02 | 28.71% (+0.58) | |
| Jan 16, 2025 | 2024 (Q4) | 1.702.22 | 0.85 | 161.18% (+1.37) | |
| Oct 16, 2024 | 2024 (Q3) | 1.591.88 | 1.38 | 36.23% (+0.50) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.