Morgan Stanley Q3 2025 Earnings Recap

Morgan Stanley reported record third-quarter results with revenues of $18.2 billion and earnings per share of $2.80, reflecting exceptional operating leverage and a robust performance across all business segments.

Key Takeaways

• Achieved a return on tangible common equity (ROTCE) of 23.5%, demonstrating strong profit generation capability.
• Total client assets grew to $8.9 trillion, with $81 billion in net new assets and continued strong demand for wealth management services.
• Investment banking revenues rose to $2.1 billion, driven by a resurgence in M&A activity and a supportive environment for IPOs.
• Consistent operational efficiency with a year-to-date efficiency ratio of 69%, highlighting effective cost management amid growth investments.
• Continued investment in technology, with early AI initiatives showing promise in enhancing productivity and client engagement.