Morgan Stanley (MS) Q3 2026 Financial Results Summary
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Morgan Stanley (MS) Q3 2026: Revenue Growth and Record Wealth Management Performance — Positive Outlook
Morgan Stanley (NYSE: MS) reported a strong performance in the third quarter of 2026, with net revenues of $20.3 billion, reflecting an increase of $2.1 billion or +11.5% compared to $18.2 billion in the same quarter last year. This growth was driven by robust results in both Institutional Securities and Wealth Management segments.
Key Financial Metrics:
- Net Revenues: $20.3 billion (up from $18.2 billion, +11.5% YoY)
- Net Income: $4.9 billion (up from $4.6 billion, +6.5% YoY)
- Earnings Per Share (EPS): $3.03 (up from $2.80, +8.2% YoY)
- Return on Tangible Common Equity (ROTCE): 22.6% (down from 23.5% YoY)
- Total Client Assets in Wealth Management: $10.5 trillion
Analyst View:
This quarter is a positive outcome for shareholders, showcasing Morgan Stanley's ability to leverage its integrated business model effectively. The increase in net revenues and EPS indicates strong operational performance, particularly in Wealth Management, which achieved record revenues of $9.1 billion, up from $8.2 billion a year ago. The firm also reported significant net new assets of $232 billion and fee-based flows of $80 billion, underscoring the strength of its client engagement and advisory services.
Detailed Financial Breakdown:
- Institutional Securities:
- Net revenues: $10.0 billion (up from $8.5 billion, +17.5% YoY)
- Pre-tax income: $3.5 billion (up from $3.2 billion, +9.4% YoY)
- Equity revenues: $5.8 billion (up from $4.1 billion, +41.3% YoY)
- Wealth Management:
- Net revenues: $9.1 billion (up from $8.2 billion, +10.5% YoY)
- Pre-tax income: $2.8 billion (up from $2.5 billion, +12.0% YoY)
- Asset management revenues: $5.5 billion (up from $4.8 billion, +15.8% YoY)
- Investment Management:
- Net revenues: $1.5 billion (down from $1.7 billion, -12.2% YoY)
- Pre-tax income: $259 million (down from $364 million, -29.0% YoY)
Shareholder Returns:
Morgan Stanley's Board of Directors declared a quarterly dividend of $1.15 per share, payable on November 13, 2026, to shareholders of record on October 30, 2026. Additionally, the firm repurchased $1.5 billion of its outstanding common stock during the quarter, reflecting its commitment to returning capital to shareholders.
Forward-Looking Catalysts:
Investors should watch for continued growth in Wealth Management and the potential for further gains in Institutional Securities, particularly as market conditions evolve. The firm’s ability to attract net new assets and maintain strong fee-based flows will be critical in sustaining its revenue momentum. Furthermore, any updates on strategic investments or changes in market conditions could provide additional insights into the firm’s performance in the upcoming quarters.
In summary, Morgan Stanley's Q3 2026 results reflect a robust operational performance, particularly in Wealth Management, positioning the firm favorably for future growth. Shareholders can be optimistic about the firm’s strategic direction and its commitment to delivering value through dividends and share repurchases.
Here are the extracted tables from the press release.
Condensed Consolidated Statements of Income (in millions)
Note: Amounts are in millions.
| Firm ($ millions, except per share data) | 3Q 2026 | 3Q 2025 |
|---|---|---|
| Net revenues | $20,338 | $18,224 |
| Provision for credit losses | $148 | $0 |
| Compensation expense | $7,997 | $7,442 |
| Non-compensation expenses | $5,715 | $4,754 |
| Pre-tax income | $6,478 | $6,028 |
| Net income app. to MS | $4,909 | $4,610 |
| Expense efficiency ratio | 67% | 67% |
| Earnings per diluted share | $3.03 | $2.80 |
| Book value per share | $68.59 | $62.98 |
| Tangible book value per share | $53.96 | $48.64 |
| Return on equity | 17.8% | 18.0% |
| Return on tangible common equity | 22.6% | 23.5% |
| Institutional Securities | ||
| Net revenues | $10,029 | $8,523 |
| Investment Banking | $2,159 | $2,108 |
| Equity | $5,799 | $4,116 |
| Fixed Income | $2,011 | $2,169 |
| Wealth Management | ||
| Net revenues | $9,065 | $8,234 |
| Fee-based client assets ($ billions) | $3,155 | $2,653 |
| Fee-based asset flows ($ billions) | $80.5 | $41.9 |
| Net new assets ($ billions) | $232.4 | $81.0 |
| Loans ($ billions) | $201.1 | $173.9 |
| Investment Management | ||
| Net revenues | $1,459 | $1,651 |
| AUM ($ billions) | $2,046 | $1,807 |
| Long-term net flows ($ billions) | $15.8 | $17.9 |
Condensed Consolidated Balance Sheets (in millions)
Note: The Balance Sheet table here is incomplete due to limited data available in the provided text. Adjust the rows or incorporate additional data as needed based on what is typically found in a balance sheet.
| Firm ($ millions) | 3Q 2026 | 3Q 2025 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $... | $... |
| Financial instruments owned, at fair value | $... | $... |
| Receivables from customers and brokers | $... | $... |
| Other assets | $... | $... |
| Total assets | $... | $... |
| Liabilities | ||
| Financial instruments sold, but not yet purchased, at fair value | $... | $... |
| Payables to customers and brokers | $... | $... |
| Other liabilities | $... | $... |
| Total liabilities | $... | $... |
| Shareholders' equity | ||
| Common stock and additional paid-in capital | $... | $... |
| Retained earnings | $... | $... |
| Total shareholders' equity | $... | $... |
| Total liabilities and shareholders' equity | $... | $... |
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