- Morgan Stanley‘s net revenue for the third quarter reached $18.22 billion, surpassing the estimated $16.64 billion.
- Wealth Management division net revenue was $8.23 billion, exceeding the forecast of $7.78 billion.
- Equities sales and trading generated $4.12 billion, higher than the estimated $3.41 billion.
- FICC (Fixed Income, Currencies, and Commodities) sales and trading revenue came in at $2.17 billion, above the $2.07 billion estimate.
- Revenue from Institutional Investment Banking was $2.11 billion, compared to an estimated $1.67 billion.
- Advisory revenue hit $684 million, beating the expectation of $648.5 million.
- Equity underwriting revenue recorded $652 million, above the projected $488.1 million.
- Fixed Income Underwriting brought in $772 million, exceeding the estimate of $538.8 million.
- Reported Earnings Per Share (EPS) was $2.80.
- Total deposits stood at $405.48 billion, over the forecasted $391.71 billion.
- Non-interest expenses totaled $12.20 billion, higher than the $11.84 billion estimate.
- Compensation expenses were $7.44 billion, compared to an estimation of $7.12 billion.
- Non-compensation expenses were $4.75 billion, slightly above the $4.68 billion estimate.
- The Wealth Management pretax profit was $2.50 billion, greater than the estimated $2.24 billion.
- Book value per share was $62.98, while tangible book value per share was $48.64.
- Return on equity was reported at 18%, above the 13.4% estimate.
- Return on tangible equity reached +23.5%, surpassing the prediction of +17.6%.
- The Standardized Common Equity Tier 1 (CET1) ratio was 15.2%, slightly above the 15% estimate.
- The effective tax rate was 22.8%, lower than the expected 24.2%.
- Assets under management were reported at $1.81 trillion, exceeding the forecast of $1.76 trillion.
- Fee-based asset flows amounted to $41.9 billion, far surpassing the $30.39 billion estimate.
- Negative equity net flows stood at $6.1 billion, compared to the estimated negative $2.89 billion.
- Alternatives and Solutions net flows totaled $14.2 billion, outpacing the anticipated $5.78 billion.
- The expense efficiency ratio was 67%, better than the 71.4% estimate.
- Fixed Income net flows reached $8.4 billion, significantly exceeding the $2.97 billion forecast.
Morgan Stanley on Smartkarma
Analysts on Smartkarma, an independent investment research platform, have recently covered Morgan Stanley in a primer report titled “Primer: Morgan Stanley (MS US) – Sep 2025″ by Ξ±SK. The report highlights Morgan Stanley‘s strategic shift towards Wealth and Investment Management, which has led to more stable, fee-based revenue streams. This shift has made the firm more resilient to the cyclicality of its traditional Institutional Securities business. The analysts note the firm’s strong financial performance, consistent earnings growth, and a commitment to capital returns through dividend increases and share buyback programs over the past 11 years.
The report also recognizes Morgan Stanley‘s premium valuation compared to some peers but emphasizes the robust brand, diversified business model, and leadership in key segments that provide a strong foundation for long-term growth. However, analysts caution that the firm faces risks from market volatility and increased regulatory scrutiny. Investors are advised to verify independently before acting on the insights provided in the report.
A look at Morgan Stanley Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Morgan Stanley, a global financial services company, appears to have a stable long-term outlook. With balanced scores in Value, Dividend, Growth, and Resilience at 3 each, the company demonstrates a solid foundation across various important factors. Notably, the Momentum score of 4 suggests that Morgan Stanley has positive market momentum, indicating potential growth opportunities in the future.
Morgan Stanley, as a bank holding company offering diversified financial services worldwide, operates a global securities business catering to individual and institutional investors, as well as investment banking clients. Additionally, the company runs a global asset management business. The overall Smartkarma Smart Scores show a company with a steady outlook, supported by a combination of key factors that could contribute to its long-term success in the financial services industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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