Results
Morgan Stanley Reports Net Revenues of $21.3 Billion, EPS of $3.46 and ROTCE of 26.6%
6NEW YORK, July 15, 2026 – Morgan Stanley (NYSE: MS) today reported net revenues of $21.3 billion for the second quarter ended June 30, 2026 compared with $16.8 billion a year ago.
Net income applicable to Morgan Stanley was $5.6 billion, or $3.46 per diluted share, compared with $3.5 billion, or $2.13 per diluted share, for the same period a year ago.
Management commentary
2Ted Pick, Chairman and Chief Executive Officer, said, “Active markets and consistent execution across all three regions drove exceptional results for our Integrated Firm, delivering record revenues of over $21 billion and record EPS of $3.46.
Excellent results in Institutional Securities were driven by our leading Equities franchise with continued momentum in Investment Banking and Fixed Income.
Differentiated content from our Research teams continues to drive high levels of client engagement.
1Wealth Management added a record $148 billion in net new assets, with total client assets across Wealth and Investment Management reaching the $10 trillion milestone.
The Integrated Firm is intensifying Morgan Stanley connectivity with clients globally and enhancing financial strength for shareholders.
We continue to accrete capital, giving us incremental flexibility to invest in our core businesses while generating strong returns for shareholders.”
Results
The Firm reported record net revenues and pre-tax income of $21.3 billion and $7.3 billion, respectively.
The Firm delivered a strong ROTCE of 26.6%.
7The expense efficiency ratio was 65% for the first half of the year, demonstrating operating leverage while we continued to invest in our businesses.
The Standardized Common Equity Tier 1 capital ratio was 14.8%.
8Institutional Securities reported record net revenues of $11.0 billion reflecting strong performance in Equity driven by robust client engagement and strength in Investment Banking as momentum built across capital raising and strategic activity.
5Wealth Management delivered record net revenues of $8.9 billion on strong asset management fees, robust client activity and higher net interest income, generating a pre-tax margin of 30.5%.
15 The business added net new assets of $148 billion and fee-based assets of $39 billion for the quarter.
Investment Management results reflect net revenues of $1.6 billion, primarily driven by asset management fees on higher average AUM.
10 The quarter included positive long-term net flows of $7.5 billion.
Second Quarter Results
Institutional Securities
Institutional Securities reported net revenues of $11.0 billion compared with $7.6 billion a year ago.
Pre-tax income was $4.3 billion compared with $2.1 billion a year ago.
Investment Banking net revenues up 58%:
Advisory revenues increased from a year ago on higher completed M&A transactions, particularly in the Americas.
Equity underwriting revenues increased from a year ago on higher IPOs, follow-on offerings and convertibles.
Fixed income underwriting revenues increased from a year ago primarily driven by higher issuances from client capital raising and strategic activity.
Equity net revenues up 69%:
Equity net revenues were a record on strong performance across businesses and regions, with notable strength in Asia, driven by strong client engagement and favorable market conditions.
Fixed Income net revenues up 13%:
Fixed Income net revenues increased from a year ago reflecting higher results in Credit primarily driven by credit corporates and the cumulative impact of consistent lending growth in our securitized products business.
Other net revenues decreased from a year ago primarily due to higher mark-to-market losses on corporate loans, inclusive of hedges.
Provision for credit losses:
Provision for credit losses in the quarter was driven by portfolio growth in corporate loans and secured lending facilities and individual assessments for certain corporate and commercial real estate loans.
Total Expenses:
Compensation expense increased from a year ago primarily driven by higher revenues.
Non-compensation expenses increased from a year ago primarily driven by higher execution-related expenses.
Wealth Management
Wealth Management reported net revenues of $8.9 billion compared with $7.8 billion a year ago.
Pre-tax income of $2.7 billion resulted in a pre-tax margin of 30.5%.
4,15 Strong net new assets for the quarter were $148 billion of which just over half represented inflows related to IPOs of certain clients in our Workplace channel.
3Net revenues up 14%:
Asset management revenues increased from a year ago on elevated assets driven by higher markets and the cumulative impact of strong fee-based flows.
Transactional revenues increased excluding the impact of mark-to-market gains on investments associated with DCP in the prior year quarter which are no longer presented in net revenues.
16 The increase was driven by higher levels of client activity across products.
Net interest income increased from a year ago primarily driven by higher average sweep deposits and the cumulative impact of lending growth.
Total Expenses:
Compensation expense increased from a year ago primarily driven by higher compensable revenues.
Non-compensation expenses increased from a year ago primarily driven by higher marketing and business development expenses and technology spend.
Investment Management
Investment Management reported net revenues of $1.6 billion in the current quarter.
Pre-tax income was $404 million compared with $323 million a year ago.
4Net revenues up 6%:
Asset management and related fees increased from a year ago on higher average AUM driven by higher market levels and the cumulative impact of positive flows.
Performance-based income and other revenues were relatively unchanged from a year ago.
The current quarter primarily reflects net mark-to-market gains in our private funds.
Total Expenses:
Compensation expense decreased from a year ago primarily due to lower compensation associated with carried interest.
Non-compensation expenses increased from a year ago primarily driven by higher brokerage and clearing expenses and increased technology spend.
Capital return
The Firm repurchased $1.5 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.
The Board of Directors reauthorized a multi-year common equity share repurchase program of up to $20 billion, without a set expiration date, beginning in the third quarter of 2026.
The Board of Directors declared a $1.15 quarterly dividend per share, an increase of 15 cents, payable on August 14, 2026 to common shareholders of record on July 31, 2026.
Results
The effective tax rate for the current quarter was 23.1%.
Corporate events
13 During the first quarter of 2026, as a result of a March workforce management action, we recognized severance costs of $178 million in Compensation and benefits expense.
The workforce management action was related to an effort to improve operational efficiency and manage performance, rather than a change in strategy or exit of businesses.
The action occurred
across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time.
We recorded severance costs of $94 million in the Institutional Securities business segment, $61 million in the Wealth Management business segment, and $23 million in the Investment Management business segment.
These costs were incurred across all regions, with the majority in the Americas.
Results
20 The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $97.2 billion and $88.4 billion, and supplementary leverage exposure denominator of approximately $1.97 trillion and $1.62 trillion, for the second quarter of 2026 and 2025, respectively.
62 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.