Morgan Stanley posted a blockbuster third-quarter earnings report on Wednesday, far surpassing analyst expectations and posting its greatest earnings beat in almost 5 years. The New York-based banking large reported document web revenues of $18.2 billion for the quarter ending September 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 revenue surged almost 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 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 underneath the Trump administration.
The financial institution’s CEO Ted Decide and different executives talked about the phrase “exceptional” a number of instances on the next earnings name with analysts. Decide talked about document prime and backside line efficiency and stated, “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.”
On the decision, CFO Sharon Yeshaya commented, “The firm delivered exceptional results in the third quarter, underscoring the power of our global integrated firm.”
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 whole consumer belongings soared to $8.9 trillion with $81 billion in web new asset inflows in the course of the quarter. The division maintained a 30% pre-tax margin, reinforcing its place as a pacesetter within the house.
Morgan Stanley’s asset administration companies benefited from inflated transaction and administration charges as buyers repositioned portfolios amid ongoing market volatility and sector rotation. The continued energy of the wealth and funding administration engines highlighted the agency’s resilience and its skill to generate payment revenue in periods of economic market upheaval.
Morgan Stanley’s shares climbed 4.7% in common buying and selling Wednesday following its earnings announcement, bringing year-to-date features 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 industry-wide rebound, as main US 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 US financial 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 means of the ultimate quarter of the 12 months and into 2026.
With its diversified income streams, document profitability, and robust steerage, Morgan Stanley demonstrated its capability to capitalize on evolving market cycles, setting a excessive bar for monetary providers corporations 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 knowledge earlier than publishing.
