Morgan Stanley Stock Earnings Reports

Morgan Stanley reported a record Q1 2026 with revenues of $20.6 billion and EPS (ex DVA) of $3.43, driven by strong performance across Institutional Securities, Wealth Management and Investment Management. ROTCE was 27.1% and the CET1 ratio ended at 15.1%, providing a >300 bps capital buffer versus requirements; the firm repurchased $1.75 billion of stock and closed the EquityZen acquisition. Institutional Securities delivered record revenues ($10.7B) with particularly strong equities and fixed income results and rising investment banking and advisory activity. Wealth Management produced record revenues ($8.5B), $118B of net new assets and $54B of fee-based flows, with bank lending and NII building; management reiterated a long-term target PBT margin of ~30% for Wealth. Investment Management AUM reached $1.9T with continued demand for Parametric and alternatives. Management emphasized: (1) measured confidence amid geopolitical uncertainty and AI-driven change, (2) limited direct exposure to private credit (private credit represents ~1% of Wealth FA assets and <1% of firm AUM), (3) ongoing investments in technology and AI as productivity enhancers, and (4) a pragmatic view on upcoming Basel rule changes (potentially modestly capital neutral/positive overall). Key near-term considerations for investors include continued client activity and pipelines (IB and IPO/sponsor-led), capital deployment decisions as regulatory reforms finalize, disciplined margin/cost management (efficiency ratio ~65% including severance), and continued expansion in Asia and digital/private markets capabilities.