Morgan Stanley tops estimates as equities trading revenue beats expectations by $909 million
Morgan Stanley exceeded third-quarter estimates with revenue of $20.34 billion and profit of $4.91 billion, a 6.5% increase. Equities trading revenue drove the results, surging 41% to $5.8 billion and beating expectations by $909 million. Earnings per share reached $3.03, surpassing the LSEG consensus estimate of $2.91. While equities performed strongly, fixed income trading declined. Additionally, the firm's wealth management arm reported record new money inflows resulting from a boom in initial public offerings.
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- ✓ Morgan Stanley reported third-quarter profit of $4.91 billion, representing a 6.5% increase.
- ✓ Equities trading revenue rose 41% to $5.8 billion, exceeding estimates by $909 million.
- ✓ The company reported earnings per share of $3.03, beating the LSEG consensus estimate of $2.91.
- ✓ Quarterly revenue reached $20.34 billion, topping the LSEG estimate of $19.95 billion.
What changed
Morgan Stanley released third-quarter 2026 financial results showing a significant beat in equities trading revenue and EPS.
Live updates
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Morgan Stanley Q3 Profit Rises to $4.91 Billion on Equities Trading Surge
Morgan Stanley exceeded third-quarter estimates with revenue of $20.34 billion and profit of $4.91 billion, a 6.5% increase. Equities trading revenue drove the results, surging 41% to $5.8 billion and beating expectations by $909 million. Earnings per share reached $3.03, surpassing the LSEG consensus estimate of $2.91. While equities performed strongly, fixed income trading declined. Additionally, the firm's wealth management arm reported record new money inflows resulting from a boom in initial public offerings.
Why it matters
The results highlight a shift in revenue drivers as equity markets outperform fixed income. The record IPO-related inflows into the wealth arm indicate a broadening of the bank's capture of capital market activity. This performance occurs amid a general climb in wealth revenues across major firms including Merrill Lynch.
What is confirmed
- Morgan Stanley reported third-quarter profit of $4.91 billion, representing a 6.5% increase.
- Equities trading revenue rose 41% to $5.8 billion, exceeding estimates by $909 million.
- The company reported earnings per share of $3.03, beating the LSEG consensus estimate of $2.91.
- Quarterly revenue reached $20.34 billion, topping the LSEG estimate of $19.95 billion.
- Morgan Stanley's wealth management arm brought in record new money from IPOs.
What to watch next
- Detailed reporting on the scale of the fixed income trading decline
- Future growth trends in wealth management revenue relative to Merrill Lynch
confidence 100%Sources used for this update (13)
- www.cnbc.com — Stock Markets, Business News, Financials, Earnings - CNBC
- CNBC — Morgan Stanley tops estimates as equities trading revenue exceeds expectations by $909 million
- Bloomberg.com — Morgan Stanley’s Wealth Arm Brings in Record New Money From IPOs
- Reuters — Morgan Stanley profit rises on equity trading strength
- Yahoo Finance — Wealth Revenues Climb at Morgan Stanley, Merrill Lynch
- AdvisorHub — Morgan Stanley Wealth Arm Rakes in Record Haul From IPOs
- Axios — Morgan Stanley's other IPO boom
- www.cnbc.com — Morgan Stanley tops estimates as equities trading revenue ...
- www.newsbreak.com — Morgan Stanley tops estimates as equities trading revenue ...
- www.cnbc.com — Morgan Stanley tops estimates as equities trading revenue ...
- rocketnews.com — Morgan Stanley tops estimates as equities trading revenue ...
- ground.news — Morgan Stanley tops estimates as equities trading revenue ...
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