Morgan Stanley beats Q4 expectations, shares rise on strong results

Investing.com -- Morgan Stanley reported fourth-quarter earnings that exceeded analyst expectations, with net revenues of $17.9 billion and earnings per share of $2.68, surpassing the consensus estimates of $17.72 billion and $2.41, respectively. The investment bank’s shares rose 1.3% following the announcement.

The financial giant’s fourth-quarter revenue increased 10.3% compared to $16.2 billion in the same period last year, driven by strong performance across its business segments. Investment Banking revenues surged 47% YoY to $2.41 billion, while Equity revenues rose 10% to $3.67 billion. These gains were partially offset by a 9% decline in Fixed Income revenues to $1.76 billion.

For the full year 2025, Morgan Stanley reported record net revenues of $70.6 billion, up 14.3% from $61.8 billion in 2024, with net income of $16.9 billion or $10.21 per diluted share. The firm achieved a return on tangible equity (ROTCE) of 21.6% for the year.

"Morgan Stanley delivered outstanding performance in 2025," said Ted Pick, Chairman and Chief Executive Officer. "Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm. Total client assets in Wealth and Investment Management grew to $9.3 trillion, supported by over $350 billion in net new assets."

The Wealth Management division posted strong results with net revenues of $8.43 billion, up 13% YoY, while Investment Management revenues increased 5% to $1.72 billion. The firm’s Standardized Common Equity Tier 1 capital ratio stood at 15.0% at year-end.

Morgan Stanley’s board declared a quarterly dividend of $1.00 per share.

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