TLDR
- Morgan Stanley delivered Q4 EPS of $2.68, surpassing the $2.44 consensus estimate, while revenue hit $17.89 billion versus $17.77 billion expected.
- Wealth management generated $8.4 billion in net revenue as client assets reached $9.3 trillion with over $350 billion in net new assets.
- Investment banking revenue surged 47% to $2.41 billion driven by increased M&A advisory activity across all global regions.
- The firm repurchased $1.5 billion in shares during Q4 and $4.6 billion throughout 2025 under its buyback program.
- MS stock climbed 38% over the past year but dipped 3% this week alongside other bank earnings reports.
Morgan Stanley crushed fourth-quarter expectations on Thursday. The bank posted earnings of $2.68 per share against analyst estimates of $2.44. Revenue reached $17.89 billion, topping the $17.77 billion forecast.
$MS (Morgan Stanley) #earnings are out: pic.twitter.com/MKqldw2AGK
— The Earnings Correspondent (@earnings_guy) January 15, 2026
Net income climbed to $4.40 billion from $3.71 billion in the year-ago quarter. That works out to $2.68 per share versus $2.22 per share last year. Revenue grew from $16.22 billion in the prior-year period.
The wealth management unit carried the quarter. It delivered $8.4 billion in net revenue, up from $7.5 billion a year earlier. For all of 2025, the division generated record revenue of $31.8 billion.
Client assets in wealth and investment management hit $9.3 trillion. The firm attracted more than $350 billion in net new assets during the year.
CEO Ted Pick highlighted the performance. “Morgan Stanley delivered outstanding performance in 2025,” he said. The results reflect investments made over several years across the firm.
Investment Banking Rebounds Strong
The investment banking division posted impressive growth. Net revenue jumped 47% to $2.41 billion from $1.64 billion in the same quarter last year.
Advisory fees drove the increase. Completed M&A deals rose across all geographic regions during the period.
Morgan Stanley also expanded into new areas. The bank filed paperwork for spot Bitcoin and Solana ETFs. The move could open new revenue streams from crypto products.
The firm’s private equity arm took majority control of engineering company Olsson. This expansion into alternative investments may boost fee income over time.
Share Buybacks and Stock Movement
Morgan Stanley returned capital to shareholders during the quarter. The bank bought back $1.5 billion worth of stock in Q4. For the full year, buybacks totaled $4.6 billion.
MS stock gained 38% over the past 12 months. But shares fell nearly 3% this week as major banks reported earnings. The stock opened at $180.77 on Thursday with a market cap of $287.30 billion.
Wall Street analysts remain generally positive. Three analysts rate MS as a strong buy. Eight assign buy ratings while eight give hold ratings. The consensus rating stands at “Moderate Buy” with an average price target of $181.85.
Jefferies Financial Group recently raised its target from $186 to $212. UBS Group increased its target from $156 to $165.
CEO Edward Pick sold 100,000 shares in October at $164.34 per share. The sale totaled $16.43 million. He still owns 574,986 shares directly.
Institutional investors hold 84.19% of Morgan Stanley stock. The bank reported a return on equity of 16.40% and a net margin of 13.85%. The company trades at a price-to-earnings ratio of 18.54.
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