On Thursday, Morgan Stanley delivered earnings reports for the fourth quarter of 2025 that topped market estimates, propelled by robust performance in its wealth management division.
Net income for the quarter increased to $4.40 billion, or $2.68 per share, compared to $3.71 billion, or $2.22 per share, a year ago. Revenue inched higher from $16.22 billion to $17.89 billion. The figure beat the $17.77 billion anticipated by LSEG.
The wealth management division generated $8.4 billion in net revenue, an increase from $7.5 billion the previous year. For the entire year, net revenue from the segment hit a record $31.8 billion. Client assets in the bank’s wealth and investment management arm rose to $9.3 trillion, underpinned by inflows surpassing $350 billion in net new assets.
Ted Pick, CEO and chairman, noted in a statement: “Morgan Stanley delivered outstanding performance in 2025. Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm.”
A sharp rebound was also seen in investment banking, where net revenue rose 47% to $2.41 billion, up from $1.64 billion a year earlier. This was supported by higher advisory fees as M&A activity gained pace globally.
Morgan Stanley repurchased $1.5 billion of shares during the fourth quarter, bringing the annual buyback total to $4.6 billion.
Notably, shares of Morgan Stanley surged by around 6% following the release of the results, with a surge of more than 43% over the past year.
