Morgan Stanley Third Quarter 2026 Earnings Results Morgan Stanley Reports Net Revenues of $20.3 Billion, EPS of $3.03 and ROTCE of 22.6%
MORGAN STANLEY (MS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Morgan Stanley Third Quarter 2026 Earnings Results Morgan Stanley Reports Net Revenues of $20.3 Billion, EPS of $3.03 and ROTCE of 22.6% NEW YORK, October 14, 2026 – Morgan Stanley (NYSE: MS) today reported net revenues of $20.3 billion for the third quarter ended September 30, 2
How this was made
The 30-second read
Why it matters
The earnings beat and record asset flows suggest a positive catalyst for the stock, though rising credit‑loss provisions warrant caution.
Market read
The earnings release is a primary catalyst for MS and may lift the broader financial sector.
What to watch
Higher credit‑loss provisions and modest fixed‑income revenue could temper enthusiasm.
Morgan Stanley Reports Net Revenues of $20.3 Billion, EPS of $3.03 and ROTCE of 22.6%
Third-quarter net revenues, net income applicable to Morgan Stanley and diluted EPS increased from the prior-year quarter, led by Equity and record Wealth Management revenue, while Investment Management revenue and Fixed Income revenue declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, Q3 2026GAAP | $20.34B | (5 %) | 12 % |
| Net interest, Q3 2026GAAP | $3.25B | 17 % | 30 % |
| Total non-interest revenues, Q3 2026GAAP | $17.09B | (8 %) | 9 % |
| Investment banking revenues, Q3 2026GAAP | $2,361 | (11 %) | 4 % |
| Trading revenues, Q3 2026GAAP | $5,601 | (17 %) | 12 % |
| Investments revenues, Q3 2026GAAP | $(39) | (17 %) | * |
| Commissions and fees revenues, Q3 2026GAAP | $1,667 | (9 %) | 13 % |
| Asset management revenues, Q3 2026GAAP | $7,254 | 5 % | 13 % |
| Other revenues, Q3 2026GAAP | $244 | 9 % | 53 % |
| Interest income, Q3 2026GAAP | $16.19B | 2 % | 5 % |
| Interest expense, Q3 2026GAAP | $12.94B | (1 %) | — % |
| Provision for credit losses, Q3 2026GAAP | $148M | 51 % | * |
| Compensation and benefits expense, Q3 2026GAAP | $7,997 | (2 %) | 7 % |
| Total non-compensation expenses, Q3 2026GAAP | $5.71B | — % | 20 % |
| Total non-interest expenses, Q3 2026GAAP | $13.71B | (1 %) | 12 % |
| Income before provision for income taxes, Q3 2026GAAP | $6.48B | (12 %) | 7 % |
| Provision for income taxes, Q3 2026GAAP | $1.51B | (11 %) | 10 % |
| Net income, Q3 2026GAAP | $4.97B | (12 %) | 7 % |
| Net income applicable to noncontrolling interests, Q3 2026GAAP | $60M | (17 %) | 33 % |
| Net income applicable to Morgan Stanley, Q3 2026GAAP | $4.91B | (12 %) | 6 % |
| Preferred stock dividends, Q3 2026GAAP | $158M | 9 % | (1 %) |
| Earnings applicable to Morgan Stanley common shareholders, Q3 2026GAAP | $4.75B | (13 %) | 7 % |
| Earnings per basic share, Q3 2026GAAP | $3.07 | (12 %) | 8 % |
| Earnings per diluted share, Q3 2026GAAP | $3.03 | (12 %) | 8 % |
| Return on average common equity, Q3 2026other | 17.8 % | – | – |
| Return on average tangible common equity, Q3 2026non-GAAP | 22.6 % | – | – |
| Book value per common share, Q3 2026GAAP | $68.59 | – | – |
| Tangible book value per common share, Q3 2026non-GAAP | $53.96 | – | – |
| Pre-tax margin, Q3 2026other | 32 % | – | – |
| Firm expense efficiency ratio, Q3 2026other | 67 % | – | – |
| Effective tax rate, Q3 2026GAAP | 23.3 % | – | – |
| Net revenues, nine months ended September 30, 2026GAAP | $62,266 | – | 18 % |
| Net income applicable to Morgan Stanley, nine months ended September 30, 2026GAAP | $16,057 | – | 29 % |
| Earnings per diluted share, nine months ended September 30, 2026GAAP | $9.93 | – | 32 % |
| Firm expense efficiency ratio, nine months ended September 30, 2026other | 66 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Institutional SecuritiesEquity net revenues increased on strong performance across businesses and regions driven by client engagement and strength in Asia; Investment Banking net revenues were up 2%. | $10.03B | – | 18 % |
| Wealth ManagementRecord asset management revenues rose on asset growth primarily driven by higher market levels and the cumulative impact of strong fee-based flows; net interest income increased on lending growth and higher average sweep deposits. | $9,065 | – | 10% |
| Investment ManagementAsset management and related fees increased on higher average AUM, but performance-based income and other revenues decreased due to reversal of accrued carried interest related primarily to certain investments in one private fund. | $1,459 | – | (12%) |
Capital returns
- The Firm repurchased $1.5 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.
- Repurchases ($MM): $1,540 in 3Q 2026, compared with $1,085 in 3Q 2025.
- Number of Shares (MM): 7 in 3Q 2026 and 7 in 3Q 2025.
- Average Price: $212.74 in 3Q 2026, compared with $145.77 in 3Q 2025.
- The Board of Directors declared a $1.15 quarterly dividend per share payable on November 13, 2026 to common shareholders of record on October 30, 2026.
What drove it
- Institutional Securities Investment Banking net revenues were $2,159, compared with $2,108; Advisory revenues were $887, compared with $684.
- Institutional Securities Equity net revenues were $5,799, compared with $4,116.
- Institutional Securities Fixed Income net revenues were $2,011, compared with $2,169.
- Wealth Management asset management revenues were $5,544, compared with $4,789, and net interest revenues were $2,228, compared with $1,991.
- Wealth Management fee-based client assets were $3,155 billion, compared with $2,653 billion; fee-based asset flows were $80.5 billion, compared with $41.9 billion.
- Wealth Management net new assets were $232.4 billion, compared with $81.0 billion; just over half were associated with IPO-related flows.
- Investment Management AUM was $2,046 billion, compared with $1,807 billion; long-term net flows were $15.8 billion, compared with $17.9 billion.
Concerns
- Fixed Income net revenues decreased from a year ago primarily due to declines in credit on lower performance in securitized products and in commodities on lower structured activity.
- Investment Management performance-based income and other revenues were $(106), compared with $117, driven by reversal of accrued carried interest related primarily to certain investments in one private fund.
- Institutional Securities provision for credit losses was $141, compared with $1, primarily driven by growth in corporate and secured lending portfolios; the quarter included charge-offs of $105 million related to certain corporate and commercial real estate loans.
- Firm provision for credit losses was $148, compared with $0.
- Third-quarter net revenues were $20,338, compared with $21,348 in the prior quarter; net income applicable to Morgan Stanley was $4,909, compared with $5,581.
What to watch
- Sustainability of Equity revenue following $5,799 in third-quarter net revenues.
- Wealth Management asset growth, lending growth, sweep deposits and conversion of $80.5 billion in fee-based asset flows.
- The effect of higher execution-related expenses and technology spend on non-compensation expenses.
- Credit performance in corporate, secured lending and commercial real estate portfolios following $105 million of charge-offs.
- Investment Management performance-based income and other revenues after the carried-interest reversal.
Balance sheet and cash flow
- Period end common shares outstanding (millions): 1,565, compared with 1,591 in 3Q 2025 and 1,572 in 2Q 2026.
- Standardized Approach CET1 capital: 14.9 %, compared with 15.1 % in 3Q 2025.
- Advanced Approach CET1 capital: 16.3 %, compared with 15.7 % in 3Q 2025.
- Tier 1 leverage: 5.9 %, compared with 6.8 % in 3Q 2025.
- SLR: 4.8 %, compared with 5.5 % in 3Q 2025.
- The SLR utilized a Tier 1 capital numerator of approximately $98.7 billion and supplementary leverage exposure denominator of approximately $2.04 trillion for the third quarter of 2026.
Analysis
Morgan Stanley reported third-quarter net revenues of $20,338, up 12 % from $18,224 in the prior-year quarter, while net income applicable to Morgan Stanley rose 6 % to $4,909. Diluted EPS increased 8 % to $3.03. The firm generated a 17.8 % return on average common equity and a 22.6 % return on average tangible common equity. Results were lower sequentially, with net revenues down 5 % from $21,348 and net income applicable to Morgan Stanley down 12 % from $5,581.
Institutional Securities was the principal growth contributor, with net revenues of $10,029 versus $8,523. Equity revenue increased to $5,799 from $4,116, supported by client engagement and strength in Asia. Investment Banking revenue was $2,159 versus $2,108, with higher Advisory revenues partly offset by lower equity and fixed income underwriting. Fixed Income revenue declined to $2,011 from $2,169, with declines in credit and commodities. The segment also recorded $141 of provision for credit losses and $105 million of charge-offs related to certain corporate and commercial real estate loans.
Wealth Management delivered record net revenues of $9,065, compared with $8,234, and reported a pre-tax margin of 30.4%. Asset management revenue rose to $5,544, and net interest revenue increased to $2,228. The business added $232.4 billion of net new assets and $80.5 billion of fee-based asset flows, while fee-based client assets reached $3,155 billion. Investment Management was the offset, as net revenues declined to $1,459 from $1,651 because performance-based income and other revenues moved to $(106) from $117, despite higher asset management and related fees and AUM of $2,046 billion.
Expenses rose from the prior-year quarter, with compensation and benefits expense at $7,997 and total non-compensation expenses at $5,715. The firm expense efficiency ratio was unchanged at 67 %, while the nine-month ratio was 66 % versus 69 %. The firm returned capital through $1.5 billion of common-stock repurchases and declared a $1.15 quarterly dividend per share. Standardized Approach CET1 capital was 14.9 %, while Advanced Approach CET1 capital was 16.3 %.
No forward financial guidance was provided in the filing. The central reported items to monitor are the durability of Equity performance, Wealth Management fee-based flows and asset levels, the trajectory of credit losses, and whether Investment Management performance-based income recovers following the carried-interest reversal.
Management, verbatim
Morgan Stanley reported another strong quarter with net revenues of $20.3 billion, EPS of $3.03 and a ROTCE of 22.6%. The Integrated Firm is connecting the full breadth of Morgan Stanley to deliver differentiated solutions and advice for our clients. Institutional Securities benefited from global strength, led by our Equity franchise, and Wealth Management reported record revenues and added $232 billion in net new assets and $80 billion in fee-based flows. Across Wealth and Investment Management, total client assets grew to $10.5 trillion, demonstrating the scale of our platform and the strength of our franchise. We continue to invest for growth while delivering strong returns for shareholders.
Ted Pick, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-outlook guidance comparison
- Gross margin
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Full balance sheet
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Morgan Stanley filed a Form 8‑K reporting its third‑quarter 2026 financial results, highlighting record wealth‑management inflows and solid institutional securities performance.
Ticker impact
Morgan Stanley reported Q3 2026 earnings with net revenue $20.3B, EPS $3.03 and ROTCE 22.6%, a fresh 8‑K disclosure.
likely upward pressure as investors price in the earnings beat and record wealth‑management inflows
Quarterly results exceed prior year and show record asset flows, prompting buying interest.
Market effects
Wealth management and institutional securities segments may see broader buying in financial services.
U.S. financial sector likely gains modestly in early trading.
Large-cap US bank earnings can influence global risk sentiment.
Counterpoint
If the market has already priced in a strong quarter, the stock may face profit‑taking pressure.
Key entities
- companyMorgan Stanley
U.S. investment bank and financial services firm (ticker MS).
