"Morgan Stanley posted a blockbuster third-quarter earnings report on Wednesday, far surpassing analyst expectations and posting its biggest earnings beat in nearly five years. The New York-based banking giant reported record net revenues of $18.2 billion for the quarter ending September 30, 2025, up 18% from the previous year, driven by robust performance across equities trading, investment banking, and wealth management divisions. Net income surged nearly 44% year-over-year to $4.6 billion, or $2.80 per diluted share, handily above consensus forecasts of $2.10 per share."
"Morgan Stanley's third quarter was defined by a perfect storm of favorable market dynamics, including heightened trading activity and a revival in dealmaking. Equities trading revenue jumped 35% to $4.12 billion, a figure that not only exceeded internal estimates but also overtook rival Goldman Sachs. Investment banking revenues surged 44% to $2.11 billion, supported by a wave of completed mergers, initial public offerings, and corporate fundraising, all aided by optimism surrounding economic growth and prospects for interest rate cuts under the Trump administration."
"The capital markets flywheel is taking hold as the administration seeks to execute on its three-pronged strategy to reshape the economy with Fed rate cuts likely to continue into next year."
"The firm delivered exceptional results in the third quarter, underscoring the power of our global integrated firm."
Morgan Stanley generated record net revenues of $18.2 billion in Q3 2025, up 18% year-over-year, and net income rose nearly 44% to $4.6 billion ($2.80 per diluted share). Equities trading revenues climbed 35% to $4.12 billion, surpassing a key rival, while investment banking revenues increased 44% to $2.11 billion amid stronger M&A, IPOs, and corporate fundraising. Wealth management revenue grew 13% to $8.23 billion, about $500 million above analyst expectations, supported by rising asset balances and client activity. Executives described results as exceptional and attributed gains to an integrated capital markets environment and favorable market dynamics.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]