Key Stats for Morgan Stanley Stock
- Price Change for $MS stock: 4.7%
- Current Share Price: $163
- 52-Week High: $167
- $MS Stock Price Target: $165
What Happened?
Morgan Stanley (MS) stock surged nearly 5% on Wednesday after the investment bank reported blockbuster third-quarter results that crushed Wall Street expectations by the widest margin in almost five years.
The company posted earnings of $2.80 per share, smashing the analyst estimate of $2.07. Revenue hit a record $18.22 billion, well above the $16.7 billion forecast, and net income jumped 47% from last year to $4.45 billion, while revenue climbed 18.5%.
The standout performance came across the board.
- Equities trading revenue soared 35% to $4.12 billion, beating estimates by $720 million.
- The bank’s prime brokerage business serving hedge funds delivered record results.
- Investment banking revenue surged 44% to $2.11 billion, roughly $430 million above expectations, driven by a rebound in completed mergers, IPOs, and fixed income fundraising activity.
- Morgan Stanley’s massive wealth management division also delivered strong results with revenue rising 13% to $8.23 billion, about $500 million more than expected. The unit now manages $7 trillion in client assets and achieved a reported margin of 30%.
- The company added $81 billion in net new assets during the quarter, with $42 billion flowing into fee-based accounts.
CEO Ted Pick emphasized that the company’s “integrated firm” strategy is paying off, pointing to the “capital markets flywheel taking hold” as the regulatory environment becomes more business-friendly and clients increasingly seek advice on deploying capital in both public and private markets.
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What the Market Is Telling Us About Morgan Stanley Stock
The strong rally in Morgan Stanley stock reflects investor enthusiasm for the bank’s positioning in what Pick called an ideal environment for Wall Street-centric firms.
With stocks near record highs, credit spreads tight, and the IPO market reopening, Morgan Stanley is firing on all cylinders.
The wealth management business continues to benefit from market appreciation and new client acquisition through its workplace channel, as more companies go public.
Investment banking pipelines look healthy across all three global regions, suggesting the momentum could continue into 2026.
Management highlighted over 300 basis points of excess capital above regulatory minimums, providing flexibility for share buybacks, dividends, and strategic investments.
The banking giant repurchased $1.1 billion in stock during the quarter and maintains its $1 per share annual dividend.
However, investors should note that the results do reflect favorable market conditions. Pick acknowledged uncertainty around geopolitics and the economic cycle.
If asset prices correct or volatility spikes, some of the trading and wealth management momentum could reverse.
Still, the diversified business model and investments in technology and talent position Morgan Stanley stock well for sustained growth as capital markets activity normalizes after years of sluggish deal flow.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!