Morgan Stanley delivered third-quarter financial results ahead of analyst projections, helped by a substantial surge in equities trading revenue and strong inflows in its wealth management division. Volatility sparked by interest rate shifts and global conflicts intensified trading activity, boosting the bank’s earnings and offsetting weaker fixed income performance.
The firm reported net profit of $4.91 billion, or $3.03 per share, for the three months ending September 30. This compares with $4.61 billion, or $2.80 per share, in the prior-year period. Analysts polled by LSEG had anticipated earnings of $2.91 per share.
Overall revenue advanced to $20.34 billion from $18.22 billion a year earlier, surpassing average estimates of $19.95 billion. The centerpiece of these results was equities trading, where revenue soared 41% to $5.8 billion, outperforming consensus by approximately $909 million. Executives highlighted broad strength in equities across multiple regions, with Asia noted as a significant driver of activity.
Fixed income trading, in contrast, saw a decline of 7% year over year to $2.01 billion, trailing expectations by about $260 million. The decrease was primarily linked to weaker results in credit and commodities trading.
In investment banking, revenue edged up by 2% to $2.16 billion, despite falling short of forecasts by $110 million. The division benefited from higher advisory fees as completed deals increased, though these gains were partially offset by lower proceeds from equity and fixed income underwriting activities.
On major M&A assignments, Morgan Stanley acted as lead financial adviser for Uber’s $14.8 billion acquisition of Delivery Hero and for Consolidated Precision Products during its $11.75 billion sale to GE Aerospace. The bank also secured roles in upcoming artificial intelligence IPOs, including Anthropic and OpenAI.
Despite a generally solid quarter, shares of Morgan Stanley declined about 3% on Wednesday. The stock has advanced 5.1% so far in 2026, trailing the broader market but outpacing key rival Goldman Sachs.
CEO Ted Pick described the current environment as a blend of momentum from artificial intelligence investments and persistent geopolitical and inflation-related uncertainties, factors that moderated Wall Street activity from early September. He conveyed a sense of cautious optimism for the fourth quarter.
