Morgan Stanley · MS-PA · FY2026 Q1 · Calendar Q2 2026
Morgan Stanley posts record Q1 revenue as wealth management and trading lead
The results support a constructive operating thesis: Morgan Stanley's integrated platform produced record revenue, strong wealth-management flows and robust institutional performance, while management continued investing in AI, digital assets, private credit and Asia-Pacific growth. The thesis remains exposed to credit-cycle, regulatory, geopolitical and operational-resilience risks.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
The quarter added several strategic developments: a digital-asset pilot with Zero Hash for select eTrade clients, completion of the Equity Zen acquisition to strengthen private credit, and beta testing of Anthropic's Claude Mythos AI model for internal and client-facing tools. Management also emphasized continued Asia-Pacific expansion and technology investment.
Guidance delta
Management guidance sentiment was maintained; no quantitative guidance change was supplied.
Key takeaways
- Management reported record Q1 revenue of $20.6 billion and EPS of $3.43, with 27% ROTCE.
- Wealth Management generated $118 billion of net new assets and $54 billion of fee-based flows, with revenue of $8.5 billion.
- Institutional Securities reported $10.7 billion of revenue, including more than $5 billion from equities.
- Management cited a 15.1% CET1 ratio and a $1.75 billion share repurchase.
- The firm highlighted AI, digital assets, private credit and Asia-Pacific expansion as strategic priorities.
Management priorities
- Scale the digital-asset pilot and explore broader crypto offerings.
- Continue AI integration across advisory, trading and operational platforms.
- Invest in technology and adviser education to deepen client relationships.
- Pursue targeted expansion in Asia-Pacific, especially Japan, Korea, Taiwan and India.
- Maintain share repurchases and disciplined capital allocation.
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Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Wolfe Research | Peer Perform | Underperform | Upgrade | Oct 19, 2023 |
| Oppenheimer | Outperform | Outperform | Maintain | Oct 18, 2023 |
| Evercore ISI Group | Outperform | Outperform | Maintain | Oct 18, 2023 |
| BMO Capital | Outperform | Outperform | Maintain | Oct 18, 2023 |
| UBS | Neutral | Buy | Downgrade | Oct 10, 2023 |
| JP Morgan | Overweight | Overweight | Maintain | Oct 4, 2023 |
| RBC Capital | Sector Perform | Sector Perform | Maintain | Sep 24, 2023 |
| Atlantic Equities | Neutral | Neutral | Maintain | Jul 31, 2023 |
| Odeon Capital | Buy | Hold | Upgrade | Jul 11, 2023 |
| Citigroup | Neutral | Neutral | Maintain | Jun 21, 2023 |
| CFRA | Buy | Strong Buy | Downgrade | Apr 19, 2023 |
| Barclays | Overweight | Overweight | Maintain | Apr 11, 2023 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Apr 2, 2023 |
| Credit Suisse | Outperform | Outperform | Maintain | Jan 18, 2023 |
| Goldman Sachs | Buy | Buy | Maintain | Oct 3, 2022 |
| Deutsche Bank | Hold | Hold | Maintain | Sep 11, 2022 |
| Piper Sandler | Neutral | Neutral | Maintain | Jun 30, 2022 |
| Berenberg | Hold | Buy | Downgrade | Sep 27, 2021 |
| Seaport Global | Neutral | Buy | Downgrade | Aug 12, 2021 |
| Argus Research | Buy | Buy | Maintain | Jul 15, 2021 |
| Jefferies | Buy | Buy | Maintain | Jun 9, 2021 |
| B of A Securities | Buy | Buy | Maintain | Jun 3, 2021 |
| Daiwa Capital | Outperform | Neutral | Upgrade | Mar 1, 2021 |
| DA Davidson | Buy | Neutral | Upgrade | Jun 23, 2020 |
| JMP Securities | Market Perform | Market Outperform | Downgrade | Jan 12, 2020 |
| Societe Generale | Sell | Hold | Downgrade | Jan 31, 2019 |
| HSBC | Hold | Buy | Downgrade | Oct 1, 2018 |
| Bernstein | Market Perform | Underperform | Upgrade | Jul 18, 2018 |
| Keefe, Bruyette & Woods | Outperform | Market Perform | Upgrade | Dec 12, 2017 |
| Buckingham Research | Buy | Buy | Maintain | Oct 17, 2017 |
| Guggenheim | Buy | Neutral | Upgrade | Oct 19, 2016 |
| Macquarie | Outperform | Outperform | Maintain | Oct 4, 2016 |
| Nomura | Buy | Buy | Maintain | Jan 10, 2016 |
| Susquehanna | Neutral | Neutral | Maintain | Apr 6, 2015 |
| Mediobanca Securities | Outperform | Neutral | Upgrade | Oct 22, 2013 |
| SunTrust Robinson Humphrey | Buy | Neutral | Upgrade | Apr 22, 2013 |
| ISI Group | Hold | Hold | Maintain | Jan 3, 2013 |
| FBR Capital | Outperform | Outperform | Maintain | Jun 3, 2012 |
| Collins Stewart | Hold | Buy | Downgrade | Feb 7, 2012 |
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Start freeCompany context
Snapshot as of publicationMorgan Stanley, a distinguished financial holding company established in New York in 1924, provides a comprehensive range of financial solutions and services worldwide. Its diverse clientele includes corporations, government entities, financial institutions, and individual clients spanning the Americas, Europe, the Middle East, Africa, and Asia. The firm operates through three core divisions: 1. Institutional Securities: This segment focuses on capital markets and strategic financial advisory. It assists clients with raising capital by underwriting debt, equity, and other securities, and offers expert counsel on mergers and acquisitions, corporate restructurings, real estate transactions, and project financing. Furthermore, it delivers extensive sales and trading services, including market-making, prime brokerage, financing, and trading across equities, fixed income, foreign exchange, and commodities.…
Historical context
All MS-PA earningsFinancial Services peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| STT State Street Corporation | FY2026 Q3 · Calendar Q4 2026 | +0.3% | -4.1% | State Street raises growth outlook as fee revenue reaches a record |
| STT-PG State Street Corporation | FY2026 Q3 · Calendar Q4 2026 | +0.3% | — | State Street posts strong Q3 and raises fee, NII guidance |
| MS-PO Morgan Stanley | FY2026 Q3 · Calendar Q4 2026 | +3.4% | — | Morgan Stanley Q3: Record Wealth Flows and AI Financing Focus |
| MS-PE Morgan Stanley | FY2026 Q3 · Calendar Q4 2026 | +3.4% | — | Morgan Stanley Q3: Wealth flows and AI financing support growth |
| MS-PL Morgan Stanley | FY2026 Q3 · Calendar Q4 2026 | +3.4% | — | Morgan Stanley Q3: Record flows strengthen the integrated-firm case |
| BAC-PS Bank of America Corporation | FY2026 Q3 · Calendar Q4 2026 | 0.0% | — | BofA: Loan Growth and NII Support Raised Outlook |
Latest beats and misses
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-15. For educational purposes only; not investment advice.