Morgan Stanley Stock Earnings Reports

Morgan Stanley reported a record quarter (Q1 2026) with revenues of $20.6 billion and EPS of $3.43, driven by strength across its integrated model: Institutional Securities (record $10.7B, strong equities and fixed income), Wealth Management (record revenues $8.5B, $118B net new assets, $54B fee-based flows, PBT margin 30.4%) and Investment Management (AUM $1.9T). The firm emphasized operating leverage (ROTCE ~27%), continued investments in technology (including early AI pilots and a digital asset pilot), and disciplined capital management (CET1 ratio 15.1%, $1.75B opportunistic buybacks, ~$15B capital accretion over 9 quarters). Management flagged measured confidence amid geopolitical uncertainty and AI adoption, modest exposure to private credit (private credit ~1% of Wealth assets, < $20B in Investment Management private credit exposure), and noted a bank reorganization that moved ~$100B of assets onto the U.S. bank to improve funding competitiveness over time. Management reiterated focus on strategic priorities—raising, managing and allocating capital—while continuing to invest in clients, advisers and technology. They reaffirmed a long-term Wealth Management target (30% pretax margin) and expect NII to build through the year. Management also commented on evolving capital rules (Basel proposals) and believes net impact could be capital neutral to modestly positive once finalized.