Morgan Stanley Stock Earnings Reports

Morgan Stanley reported a record Q1 2026: revenues of $20.6 billion, EPS (ex DVA) of $3.43, and ROTCE of 27.1%. The firm highlighted the strength of its integrated model across Institutional Securities (record $10.7B revenues, equities >$5B and record fixed income), Wealth Management (record revenues of $8.5B, $118B net new assets, $54B fee-based flows, PBT margin 30.4%, growing lending balances and deposits) and Investment Management (AUM $1.9T, continued demand for Parametric and alternatives). Management emphasized capital strength (standardized CET1 15.1%, >300 bps buffer to requirement, $15B capital accreted over 9 quarters) and opportunistic buybacks ($1.75B). Strategic moves: closed EquityZen acquisition, launched a digital asset pilot with Zero Hash, and continue investing in AI and technology. Management is constructive on pipeline for M&A, equity and sponsor-led activity while noting selectivity. They view private credit as a growing but still small exposure (private credit ~1% of Wealth assets; < $20B of firm AUM), calling recent market stress an "adolescent/coming of age" moment rather than a structural failure. Management expects NII to continue building through 2026, plans to deploy capital to support client activity, and reiterated focus on disciplined investment in advisers, technology and global footprint (notably Asia). They reaffirm Wealth Management medium-term targets (30% pretax margin) and indicated that proposed Basel reforms could be roughly capital-neutral to modestly positive for the firm, while they continue engaging with regulators. Key risks flagged: geopolitical uncertainty (Middle East), asset price and rate environment, and operational/cyber considerations tied to AI adoption.