Morgan Stanley posted a blockbuster third-quarter earnings report on Wednesday, far surpassing analyst expectations and posting its largest earnings beat in practically 5 years. The New York–primarily based banking big reported report internet revenues of $18.2 billion for the quarter ended Sept. 30, 2025, up 18% from the earlier 12 months, pushed by sturdy efficiency throughout equities buying and selling, funding banking, and wealth administration divisions. Internet earnings surged practically 44% 12 months over 12 months 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 outlined by an ideal storm of favorable market dynamics, together with heightened buying and selling exercise and a revival in dealmaking. Equities buying and selling income jumped 35% to $4.12 billion, a determine that not solely exceeded inside estimates but additionally overtook rival Goldman Sachs. Funding banking revenues surged 44% to $2.11 billion, supported by a wave of accomplished mergers, preliminary public choices, and company fundraising, all aided by optimism surrounding financial progress and prospects for rate of interest cuts below the Trump administration.
The financial institution’s CEO, Ted Choose, and different executives talked about the phrase “distinctive” a number of instances on the subsequent earnings name with analysts. Choose talked about report top- and bottom-line efficiency and mentioned: “The capital markets flywheel is taking maintain because the administration seeks to execute on its three-pronged technique to reshape the economic system with Fed charge cuts more likely to proceed into subsequent 12 months.”
On the decision, CFO Sharon Yeshaya commented, “The agency delivered distinctive ends in the third quarter, underscoring the ability of our world built-in agency.”
Wealth administration and asset progress
The agency’s wealth administration division additionally posted spectacular outcomes on the again of rising asset balances and consumer exercise. Income from wealth administration rose 13% to $8.23 billion, about $500 million forward of analysts’ expectations, as complete consumer property soared to $8.9 trillion with $81 billion in internet new asset inflows in the course of the quarter. The division maintained a 30% pretax margin, reinforcing its place as a frontrunner within the area.
Morgan Stanley’s asset administration companies benefited from an uptick in transaction and administration charges as buyers repositioned portfolios amid ongoing market volatility and sector rotation. The continued power of the wealth and funding administration engines highlighted the agency’s resilience and its capability to generate charge earnings in periods of monetary market upheaval.
Morgan Stanley’s shares climbed 4.7% in common buying and selling Wednesday following its earnings announcement, bringing year-to-date features of over 30% as buyers cheered the outcomes and the agency’s reaffirmed outlook.
Outlook and aggressive setting
Morgan Stanley’s third quarter outcomes mirrored an industrywide rebound, as main U.S. banks like JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo additionally reported above-consensus earnings amid a resurgence in capital markets and dealmaking exercise. The sturdy U.S. economic system and President Donald Trump’s newly carried out regulatory and tax reforms have additional stoked optimism for continued capital markets growth. Morgan Stanley’s administration indicated expectations for the latest momentum to persist by the ultimate quarter of the 12 months and into 2026.
With its diversified income streams, report profitability, and robust steering, Morgan Stanley demonstrated its capability to capitalize on evolving market cycles, setting a excessive bar for monetary providers companies heading into the ultimate months of 2025.
For this story, Fortune used generative AI to assist with an preliminary draft. An editor verified the accuracy of the data earlier than publishing.
