Morgan Stanley Q3 2026 Earnings Recap

Morgan Stanley fell 4.2% after earnings, suggesting investors focused on signs that activity cooled as the quarter progressed. Client activity and markets moderated through September amid higher interest rates and energy prices, while equity underwriting revenue declined from a prior-year period marked by broad-based strength.

Key Takeaways

• Revenue was $20.3 billion, EPS was $3.03, and return on tangible equity was 22.6%; year-to-date efficiency ratio was 66%.
• Wealth Management reported record revenue above $9 billion, with $232 billion in net new assets and $80 billion in fee-based flows.
• Institutional Securities revenue rose 18% year over year to $10 billion, led by equities at $5.8 billion; activity moderated after July.
• Investment banking revenue increased 2% to $2.2 billion. Advisory revenue was $887 million, equity underwriting was $525 million and down year over year, and fixed-income underwriting was $747 million.
• Management cited robust pipelines and active boardroom dialogue, but flagged higher rates, energy prices, and geopolitical tensions as risks to activity into year-end.