Morgan Stanley Reports Exceptional Results as M&A Activity Rebounds

Morgan Stanley delivered strong results in the second quarter of 2026, exceeding market expectations thanks to robust performance in trading and investment banking, along with continued growth in wealth management.

Revenue rose to $21.35 billion, a 27.1% year-over-year increase, while net income jumped 57.6% to $5.58 billion. Earnings per share reached $3.46, surpassing expectations of $2.94.

This performance was driven by a record 69% increase in equity trading revenue to $6.3 billion, along with growth in fixed-income trading revenue, improved M&A and IPO activity, and the attraction of $148.1 billion in net new assets in the wealth management sector.

Morgan Stanley shares decline

Despite these record results, Morgan Stanley shares fell by approximately 1.3% in pre-market trading. This decline is attributed to investors taking profits after the stock's recent strong performance, coupled with high expectations ahead of the earnings announcement, which prompted some traders to sell despite the bank exceeding market estimates.