Morgan Stanley (NYSE:MS) Announces Earnings Results

Morgan Stanley (NYSE:MS) issued its quarterly earnings data on Thursday. The financial services provider reported $2.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.28 by $0.40, Zacks reports. Morgan Stanley had a return on equity of 16.40% and a net margin of 13.85%.The business had revenue of $17.90 billion for the quarter, compared to the consensus estimate of $17.69 billion. During the same period in the prior year, the business posted $2.22 earnings per share. The company’s quarterly revenue was up 10.3% compared to the same quarter last year.

Here are the key takeaways from Morgan Stanley’s conference call:

• Morgan Stanley reported record 2025 results with $70.6B revenue, $10.21 EPS, 21.6% ROTCE and $9.3T total client assets, reflecting broad strength across Institutional Securities, Wealth, and Investment Management.
• Wealth management momentum is a key driver—$356B net new assets, $160B fee-based flows, and a 31%+ pre-tax margin in Q4, with advisor-led assets and lending balances (SBLs, mortgages) growing materially.
• Capital position is strong with a 15% CET1 ratio and >300 bps excess capital; the firm raised the dividend to $1.00, repurchased $4.6B of stock in 2025, and will prioritize dividend growth, client/tech investment and opportunistic buybacks.
• Management is investing across the firm in technology and AI adoption and executing strategic deals (EquityZen, Carta, Zero Hash) to drive long-term operating leverage, product expansion (alts, parametric, digital assets) and distribution reach.
• Leadership is deliberately cautious—declining to raise formal targets despite strong results due to macro and geopolitical risks, and expects some near-term transitional costs from changes to DCP hedging and advisor compensation that will reduce accounting volatility over time.

Morgan Stanley Price Performance

Shares of NYSE MS opened at $191.04 on Friday. The company has a debt-to-equity ratio of 3.27, a current ratio of 0.79 and a quick ratio of 0.79. The company has a market cap of $303.62 billion, a price-to-earnings ratio of 19.59, a price-to-earnings-growth ratio of 1.17 and a beta of 1.20. The stock’s 50-day moving average is $174.68 and its two-hundred day moving average is $159.32. Morgan Stanley has a 1-year low of $94.33 and a 1-year high of $192.16.

Morgan Stanley Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Friday, January 30th will be paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Friday, January 30th. Morgan Stanley’s payout ratio is presently 41.03%.

Morgan Stanley News Roundup

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Q4 earnings beat and dealmaking strength — Morgan Stanley reported $2.68 EPS for Q4 (above estimates) with year‑over‑year revenue growth and a ~47% jump in investment‑banking fees, fueling the rally. Morgan Stanley Reports Fourth Quarter and Full Year 2025
• Positive Sentiment: Declared quarterly dividend — MS announced a $1.00 quarterly dividend (record Jan. 30, payable Feb. 13), which supports income investors and signals management comfort with capital generation. (Company release cited above.)
• Positive Sentiment: Broader sector tailwind and continued deal pipeline — Wall Street peers also reported strong results and Morgan Stanley said it expects more IPOs and a larger deal backlog for 2026, underpinning forward revenue opportunities. Morgan Stanley profit jumps on investment banking revival
• Neutral Sentiment: Market/ETF flows and peer moves are amplifying moves — Financial ETFs and big‑bank names (Goldman, JPM) have been lifting the group, which magnifies MS’s share move but can reverse on group rotation. Big Banks Power Up: JPMorgan, Goldman Sachs, Morgan Stanley Strengthen Financial ETFs
• Negative Sentiment: Cash‑flow and metric nuance — Third‑party summaries flagged a large negative swing in operating cash flow in Q4 and some metric discrepancies (cash generation and certain liability increases), which investors may watch as a near‑term risk. Morgan Stanley (MS) Releases Q4 2025 Earnings: EPS Beats, Revenue Misses; Operating Cash Flow Turns Deeply Negative
• Negative Sentiment: Insider selling noted — SEC/filing summaries show multiple insider sales in recent months; while not uncommon at large firms, continued insider selling can be read negatively by some investors. QuiverQuant: MS earnings & insider notes

Insider Activity at Morgan Stanley

In related news, CEO Edward Pick sold 100,000 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $164.34, for a total value of $16,434,000.00. Following the sale, the chief executive officer owned 574,986 shares of the company’s stock, valued at $94,493,199.24. This trade represents a 14.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Morgan Stanley

Several hedge funds have recently added to or reduced their stakes in the stock. Boston Partners lifted its position in shares of Morgan Stanley by 4.2% during the 3rd quarter. Boston Partners now owns 4,030,967 shares of the financial services provider’s stock worth $640,105,000 after buying an additional 163,808 shares during the last quarter. Marshall Wace LLP lifted its stake in Morgan Stanley by 40.2% in the third quarter. Marshall Wace LLP now owns 2,933,604 shares of the financial services provider’s stock valued at $466,326,000 after buying an additional 841,263 shares during the last quarter. CANADA LIFE ASSURANCE Co boosted its holdings in shares of Morgan Stanley by 2.3% in the third quarter. CANADA LIFE ASSURANCE Co now owns 1,264,037 shares of the financial services provider’s stock valued at $203,647,000 after acquiring an additional 27,887 shares during the period. Two Sigma Investments LP grew its position in shares of Morgan Stanley by 150.3% during the third quarter. Two Sigma Investments LP now owns 1,234,969 shares of the financial services provider’s stock worth $196,311,000 after acquiring an additional 741,651 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of Morgan Stanley by 1.1% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 567,358 shares of the financial services provider’s stock valued at $90,187,000 after acquiring an additional 6,167 shares during the period. 84.19% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Zacks Research upgraded shares of Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 21st. BMO Capital Markets initiated coverage on Morgan Stanley in a research note on Friday, October 3rd. They issued an “outperform” rating and a $180.00 price objective on the stock. Barclays lifted their target price on Morgan Stanley from $183.00 to $219.00 and gave the company an “overweight” rating in a research report on Monday, January 5th. Evercore ISI raised their price target on Morgan Stanley from $165.00 to $175.00 and gave the company an “outperform” rating in a research note on Thursday, October 16th. Finally, JPMorgan Chase & Co. lifted their price objective on Morgan Stanley from $157.00 to $162.00 and gave the company a “neutral” rating in a report on Thursday, January 8th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, Morgan Stanley presently has a consensus rating of “Moderate Buy” and an average target price of $181.85.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company’s chief executive and chairman in recent years.

The firm’s primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.