Morgan Stanley reported earnings that exceeded Wall Street expectations, propelled by a robust performance in its wealth management division. The unit generated $8.43 billion in net revenue for the quarter, a 13 percent increase from the $7.5 billion recorded a year earlier, and helped lift the firm’s overall profit to its highest level in more than a decade.
Wealth Management Drives Growth
The wealth management segment posted net revenue of $8.43 billion, up 13 percent year‑over‑year, as higher market valuations and strong client inflows boosted investment activity. Total client assets under management rose to $9.3 trillion at quarter‑end, reflecting continued confidence in the firm’s advisory capabilities and its diversified product suite.
Overall Earnings Beat Estimates
Morgan Stanley’s quarterly earnings per share came in at $2.69, surpassing analysts’ consensus estimate of $2.55. Net income climbed to $5.2 billion, driven largely by the wealth management surge and modest gains in the investment banking and trading divisions.
Strategic Outlook
Chief Executive James Gorman highlighted the firm’s “balanced business model” that leverages the stability of wealth management alongside the upside potential of capital markets. He reaffirmed the 2026 earnings guidance, noting that the wealth management platform is expected to continue delivering double‑digit revenue growth as market conditions remain favorable.
Market Reaction
Following the release, Morgan Stanley’s shares rose approximately 4 percent in after‑hours trading, reflecting investor confidence in the firm’s ability to sustain earnings momentum through its diversified revenue streams.
