A global financial services firm, Morgan Stanley helps corporations, governments, and individual investors raise capital, manage wealth, and trade across markets. Its name comes from its two founders, Henry Sturgis Morgan (grandson of the legendary financier J.P. Morgan) and Harold Stanley, who left the J.P. Morgan partnership in 1935 to start the firm after new law forced a split between commercial and investment banking.
Morgan Stanley Q2 revenue rose 27% to $21.3B as Institutional Securities grew 44%
Institutional Securities rose 44% this quarter, the 's fastest pace in the reported series. Consolidated revenue rose 27% to $21.3B and rose 62% to $3.46, driven by a 69% increase in Equity revenues and a 58% rise in Investment Banking. The firm returned more capital and held a CET1 ratio of 14.9%, leaving it with earnings at a 20.7% .
Key takeaways
Institutional Securities net revenues rose 44% to $11.0B, led by a 69% increase in Equity revenues on higher client financing and execution services and a 58% rise in Investment Banking.
Consolidated net revenues rose 27% to $21.3B and rose 58% to $5.6B, with of $3.46, up 62% from $2.13 a year earlier, and at 34.4%.
Wealth Management net revenues grew 14% to $8.9B as rose 19% from higher market levels and fee-based flows and rose 18%.
Section summaries
Management's Discussion and Analysis
Morgan Stanley Q2 FY2026 net revenues rose 27% to $21.3B, driven by strong Equity and Investment Banking, with net income up 58% to $5.6B.
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Consolidated net revenues increased 27% to $21.3B, with up 58% to $5.6B, delivering an of 20.7% and of 26.6%.
Investment Management net revenues rose 6% to $1.6B on higher asset management fees from increased , partly offset by lower .
Non-interest expenses increased 14% to $13.9B, mainly from higher compensation tied to growth and increased execution-related and technology costs.
The firm repurchased $1.5B of common stock, raised its quarterly to $1.15 per share, and ended with a of 14.9%.
What changed
Q2 2026 Institutional Securities rose 44% after a 19% rise in Q1, accelerating from the 9% Q2 2025 pace flagged as a slowdown to watch.
Wealth Management rose 18% in Q2, sustaining the 14% Q1 recovery that reversed the deposit-mix-driven declines through 2024.
Credit loss provision was not reported this quarter; prior watchers tracked it after $135M in Q1 2025 and $196M in Q2 2025 tied to commercial real estate.
pace was $1.5B in Q2 versus $1B in Q2 2025, and the quarterly rose to $1.15 from $0.925.
was 14.9%, down from 15.1% in Q1 2026 and 15.0% in Q2 2025, a slight step below the 15.0% end-2025 level.
What to watch
Q3 2026 Institutional Securities to see if the 44% Q2 rise holds as Equity financing and underwriting normalize
Q3 2026 credit loss provision, unreported this quarter, to confirm commercial real estate office loan trajectory
Wealth Management in Q3 to confirm the 18% Q2 rise sustains
Pace of buybacks and the $1.15 in Q3 under the $20B program
Institutional Securities net revenues surged 44% to $11.0B, driven by a 69% jump in Equity revenues on higher client financing and execution services, and a 58% rise in Investment Banking.
Wealth Management net revenues grew 14% to $8.9B, fueled by a 19% increase in Asset management revenues from higher market levels and positive fee-based flows, plus an 18% rise in .
Investment Management net revenues rose 6% to $1.6B on higher asset management fees from increased average , partially offset by lower performance-based income.
Non-interest expenses increased 14% to $13.9B, primarily from higher compensation tied to growth and increased execution-related and technology costs.
The Firm's Standardized was 14.9%, and it repurchased $1.5B of common stock while increasing its quarterly to $1.15 per share.