Track market-moving stories before they get noisy

NEW YORK--(BUSINESS WIRE)--More than eight in 10 asset owners and asset managers globally expect their sustainable investment allocations to grow over the next two years, according to a new “Sustainable Signals” report by the Morgan Stanley Institute for Sustainable Investing. Conducted between August and October 2026, the survey polled 900 institutional investors across North America, Europe and Asia Pacific – all of whom currently practice or plan to practice sustainable investing – to assess attitudes, motivations and emerging trends in the space.

Over 80% of institutional investors expect to increase their sustainable investment allocations in the next two years, but at more modest rates of growth compared to 2025. Roughly 30% of asset owners and asset managers anticipate increasing their allocations by more than five percentage points, down from two-thirds in 2025. Only 2% of asset owners and 4% of asset managers anticipate growth of more than ten percentage points, compared with around one-fifth in 2025.

“Our annual survey of institutional investors indicates that a majority expect to increase sustainable investment allocations in the coming years, recognizing growth opportunities and the rising materiality of sustainability-related risks,” said Jessica Alsford, Chief Sustainability Officer and Chair of the Institute for Sustainable Investing at Morgan Stanley. “In 2026, a consistent picture has emerged across our Sustainable Signals series – with individuals, corporates and institutional investors all showing high levels of continued commitment to sustainability, yet at a more measured pace and with a sharper focus on managing risk.”

Notable survey findings include:

Concerns – Almost two-thirds (64%) of respondents cite data availability and consistency as a very significant concern around sustainable investing, up from 47% in 2025, making it the most pressing challenge. At the same time, concern levels on most issues fell compared to 2025 – including a sharp decrease in significant concerns about negative views of sustainable investing in the media or wider society, from 34% to 8%. Responsible AI – Two-thirds (66%) of respondents consider responsible AI part of their sustainable investing strategy. Most are focused on how companies oversee and govern their use of AI, rather than concentrating primarily on large language model (LLM) providers or AI’s broader economic and social impacts. Climate – Climate adaptation and resilience is the most commonly pursued sustainability theme, cited by 59% of respondents, ahead of climate mitigation at 52%. Most expect physical climate risks to affect asset prices within the next five years. But, almost 90% say it is difficult to assess the impact of physical climate change on their assets, up from 66% in 2025. Bespoke mandates – Asset owners are seeking more control over how their sustainable investments are managed. 41% of their externally managed sustainable assets are held in customized investment mandates or separately managed accounts, and 86% expect that share to rise over the next two years. Key differentiator – More than 90% of asset owners and asset managers say sustainable investing options can help differentiate firms when mandates are awarded or won. A similar share consider sustainability important to managing investment risk, and more than two-thirds cite portfolio risk reduction as a reason to invest sustainably, up from half in 2025. Shareholder engagement – Nearly two-thirds of respondents engage with portfolio companies. Of those, more than half (59%) say they allocate most time to fewer, deeper interactions , and private, direct engagement is seen as most impactful. The Sustainable Signals series was launched in 2015 and measures the views of individual investors, institutional investors and corporates on sustainable investing. View the full results of the latest survey here.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

About Morgan Stanley Institute for Sustainable Investing

The Morgan Stanley Institute for Sustainable Investing (The Institute), established in 2013, aims to accelerate the growth and adoption of sustainable finance across capital markets. The Institute produces thought leadership and develops partnerships and programs to inform and empower clients, investors and the next generation of sustainability leaders. For more information about the Morgan Stanley Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.

Disclosures:

This material was published in October 2026 and has been prepared for informational purposes only and is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Morgan Stanley Research Department and is not a Research Report as defined under FINRA regulations. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.

Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. LLC (collectively, “Morgan Stanley”), Members SIPC, recommend that recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of the transaction or strategy referenced in any materials. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Morgan Stanley, its affiliates, employees and Morgan Stanley Financial Advisors do not provide tax, accounting or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning, and their attorney for matters involving legal matters.

Past performance is not a guarantee or indicative of future performance. Historical data shown represents past performance and does not guarantee comparable future results. Certain statements herein may be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts or statements of current conditions, but instead are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond our control. In addition, this report contains statements based on hypothetical scenarios and assumptions, which may not occur or differ significantly from actual events, and these statements should not necessarily be viewed as being representative of current or actual risk or forecasts of expected risk. Actual results and financial conditions may differ materially from those included in these statements due to a variety of factors. Any forward-looking statements made by or on behalf of Morgan Stanley speak only as to the date they are made, and Morgan Stanley does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.

Certain portfolios may include investment holdings that integrate one or more sustainability factors (referred to as "sustainable investments"). Sustainability refers to the integration of certain environmental and/or social considerations into economic, strategic, and business decisions. While individual activities will be evaluated as appropriate on a case-by-case basis, Morgan Stanley’s sustainability efforts generally entail the integration of the following considerations:

Climate / Carbon Emissions Ethics & Business Conduct Supply Chains Climate, Environmental and Social Risk Management Financial & Economic Inclusion Workforce (including wellness and inclusion practices) Community Engagement Human Rights Shareholder Engagement Corruption & Bribery Nature and Biodiversity Waste You should carefully review an investment product’s prospectus or other offering documents, disclosures and/or marketing material to learn more about how it incorporates sustainability factors into its investment strategy.

Sustainability considerations may include, but are not limited to, environmental factors (e.g., climate change, biodiversity), social factors (e.g., human capital, data privacy, diversity & inclusion), and governance factors (e.g., board oversight, business ethics, risk management). You should carefully review an investment product's prospectus or other offering documents, disclosures and/or marketing material to learn more about how it incorporates sustainability factors into its investment strategy.

Sustainable investments may also be referred to as impact aware investments, socially responsible investments, Environmental, Social and Governance ("ESG") investments, or diversity and inclusion ("D&I") investments. It is important to understand that sustainability definitions and criteria used within the industry can vary, and ESG ratings of the same subject companies and/or securities can vary among different ESG ratings providers for several reasons including, differences in definitions, methodologies, processes, data sources and subjectivity among ESG rating providers when determining a rating. Certain issuers of investments including, but not limited to, separately managed accounts ("SMAs"), mutual funds and exchange traded funds ("ETFs") may have differing and inconsistent views concerning sustainability criteria, and the sustainability claims made in offering documents or other literature may overstate sustainability impact. As a result, it is difficult to compare sustainable investment products. Further, socially responsible norms vary by region, and an issuer's sustainability practices or Morgan Stanley's assessment of an issuer's sustainability practices can change over time.

Portfolios that include investment holdings deemed sustainable investments or that employ sustainability screening criteria as part of an overall strategy may experience performance that is lower or higher than a portfolio not employing such practices. Portfolios with sustainability restrictions and strategies as well as sustainable investments may not be able to take advantage of the same opportunities or market trends as portfolios where sustainability criteria are not applied. There is no assurance that a sustainable investing strategy or technique employed will be successful. Past performance is not a guarantee or a dependable measure of future results. For risks related to a specific fund, please refer to the fund's prospectus or summary prospectus.

Investment managers can have different approaches to sustainability and can offer strategies that differ from the strategies offered by other investment managers with respect to the same theme or topic. Additionally, when evaluating investments, an investment manager is dependent upon information and data that may be incomplete, inaccurate, or unavailable, which could cause the manager to incorrectly assess an investment's sustainability characteristics or performance. Such data or information may be obtained through voluntary or third-party reporting. Morgan Stanley does not verify that such information and data is accurate and makes no representation or warranty as to its accuracy, timeliness, or completeness when evaluating an issuer.

Morgan Stanley's assessment of an issuer's sustainability practices or a sustainability portfolio is as of the date of this material. No assurance is provided that the underlying assets have maintained or will maintain any applicable sustainability designations or any stated sustainability compliance, or that the underlying assets have been operated or will be operated in a sustainability-compliant manner. The sustainability impacts of the securities and any underlying assets may vary over time.

This can cause Morgan Stanley to incorrectly assess an issuer's business practices with respect to its sustainability practices. As a result, it is difficult to compare sustainable investment products.

Morgan Stanley makes no representation as to the compliance of any fund or portfolio with any laws or regulatory guidelines, recommendations, requirements or similar standards relating to sustainability; or in connection with or to meet any of your investing sustainability objectives, metrics, or criteria; or otherwise.

The appropriateness of a particular sustainable investment or strategy will depend on an investor's individual circumstances and objectives. Principal value and return of an investment will fluctuate with changes in market conditions.

Private Funds (which include hedge funds are private equity funds) often engage in speculative investment techniques and are only appropriate for long-term, qualified investors. Investors could lose all or a substantial amount of their investment. They are generally illiquid, not tax efficient, and have higher fees than many traditional investments.

Artificial intelligence (AI) is subject to limitations, and you should be aware that any output from an AI-supported tool or service made available by the Firm for your use is subject to such limitations, including but not limited to inaccuracy, incompleteness, or embedded bias. You should always verify the results of any AI-generated output.

© 2026 Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC. Members SIPC. All rights reserved.

More News From Morgan Stanley

Fueled by the global boom in artificial intelligence stocks, relaxed capital rules and greater lending to hedge funds, big Wall Street banks have already had a banner year for equities trading — even with one quarter left to go.

The five biggest investment banks have generated about $67 billion in equities revenue through Sept. 30, according to company filings. That is $7 billion more than what the group made during all of 2025, which itself was a record haul.

But it's Wall Street's Big Three that have captured the largest slice of what is shaping up to be the industry's most lucrative arena: Goldman Sachs, JPMorgan Chase and Morgan Stanley have made a combined $52 billion in stock trading revenue so far this year, nearly 80% of the total.

"When it comes to the AI mega trade, the Big Three consider each other their main competitors, and that's pretty much it," Mike Mayo, Wells Fargo banking analyst, told CNBC. "They've been best positioned to take advantage of this market."

Wall Street banks are experiencing an epic run of blockbuster profits as the total value of the stock market balloons and trading activity from institutional and retail investors rises across stocks, ETFs and derivatives. Helping drive this activity are the loans that the banks, through their prime brokerages, are extending to hedge funds so that they can amplify their bets.

Prime brokerage — the business of providing hedge funds with margin loans, securities lending and other trading services — has become a key battleground and source of growth. The Big Three's prime brokers are central to the larger equities story because they serve the largest funds across markets and products.

Demand for leverage to make bets on AI hardware, hyperscalers and chip suppliers has reached new heights, bank executives said last week.

At Goldman Sachs, equities financing activities jumped 96% in the third quarter to a record $3.37 billion. JPMorgan and Morgan Stanley don't break out that figure, but said they saw a similar dynamic.

"I like your 'insatiable demand for capital' point. That feels about right," JPMorgan CFO Jeremy Barnum said on the bank's third-quarter conference call, responding to analyst questions about financing demands.

"In this moment where AI is such an overwhelming theme ... there is capital being tapped through all kinds of different mechanisms," Barnum said.

That demand has helped transform equity desks at the Big Three from cyclical, transactional businesses into more durable, high-margin lending engines, Wall Street executives say.

The performance gap between Wall Street's giants and rivals including Bank of America and Citigroup highlights a widening divide in capital markets.

"For clients, the value isn't just a price on one trade, it's coverage and continuity," Rachid Alaoui, JPMorgan global head of equities, told CNBC in an interview. "You want a dealer that can give you the full suite across products, and you want that service to travel with you across regions. That matters in stressed markets and periods of volatility."

Executing multibillion-dollar bets, like leveraged swaps on volatile AI stocks or sector ETFs, can require an enormous balance sheet. The biggest banks can absorb potential $100 million losses without threatening their quarters, according to trading executives. Smaller or more niche banks can't underwrite single-trade risks of that magnitude, forcing them to decline the business or cede share.

U.S. prime brokers have also benefited from the retreat of European banks including Credit Suisse from the equities business, said Bloomberg Intelligence analyst Herman Chan.

"Prime is one of the ultimate scale businesses," Chan said. "If you have a strong equities franchise, the hedge funds will want to transact with you because you have a bigger pool of trading opportunities with counterparties."

Picks and shovelsWhile U.S. markets were swept up in software and cloud computing giants this year, trading executives say the fastest-growing frontier for equities was in Asia.

Institutional investors poured into South Korea and Taiwan, targeting the "picks and shovels" of the AI supply chain: the memory chipmakers and semiconductor manufacturers supporting data center construction, Alaoui said.

For the Big Three, with their footprints across Tokyo; Hong Kong; Seoul, South Korea; and Mumbai, India; the Asia trade was a goldmine. However, trading executives point out that transaction taxes and stamp duties are included in top-line revenue, artificially inflating Asia prime totals.

There is also no agreed-upon definition of what equities trading revenue should include, so some banks include business lines like clearing services that others exclude from their stock trading totals, making apples-to-apples comparisons difficult.

But that doesn't change the overall momentum of the business, boosted by a stock rally that began in October 2022, weeks before OpenAI released ChatGPT.

"We're still in a stock-based world," Morgan Stanley CEO Ted Pick said on the firm's earnings call. "Equities are still, all things being equal, the attractive asset class."

While the CEOs of Goldman Sachs and Morgan Stanley have said the AI buildout is still in its early years, if AI turns out to be not as transformative as hoped, a downturn could impact those banks more than others, analysts said.

The boom has also drawn some concern over the possible risks posed by hedge funds.

The International Monetary Fund warned this month that growing leverage, crowded positions and correlated selling from hedge funds could create potential stability risks. The IMF estimated that global hedge fund assets had reached $13 trillion.

In August, JPMorgan CEO Jamie Dimon said industrywide leverage was "the highest it's ever been," though he stopped short of calling the risk big enough to pose a threat to the financial markets.

Wall Street executives and analysts pointed out that the industry wasn't fazed by the meltdown of several hedge funds this summer. While the hedge fund run by former OpenAI researcher Leopold Aschenbrenner, Situational Awareness, garnered the most headlines, several smaller firms also experienced a forced unwinding.

Prime brokers have learned to leap on margin calls and quickly take down risk when markets move against clients, JPMorgan's Alaoui said.

"In the summer, some investors had positions they were forced to unwind," he told CNBC. "They deleveraged, risk came down, and the market moved on."

'Known unknowns'Another factor driving the equities boom: Trump administration regulators have eased some leverage rules for the largest U.S. banks, giving them more room to expand balance-sheet-heavy businesses including prime brokerage. The revised rules were finalized in 2025, and banks were allowed to adopt them as early as January.

By easing the stringent balance-sheet caps that previously treated Treasurys and prime brokerage loans, which are collateralized, the same as riskier assets, regulators gave dealers greater flexibility to deploy balance-sheet capital.

"Capital did go down, so you have to say the system is somewhat more levered because of the relaxation in regulations," said Darrell Duffie, a finance professor at Stanford University and a leading expert on financial stability. "It's not a good idea, but it hasn't gotten dramatically out of whack."

The larger size of the market and higher volatility can create more trading, derivatives activity and leverage, he said, but that's not inherently alarming.

Wall Street executives also downplayed concerns over leverage, pointing out that they use collateral and frequent stress testing to get ahead of problems.

"Hedge fund leverage as a contributor of risk to the system is very much in the category of known unknowns," JPMorgan's Barnum said last week. "It doesn't mean it's riskless, but we kind of know what it is."

— CNBC's Leslie Picker and Ritika Shah contributed to this report.

watch now

The KBW Nasdaq Bank Index, which tracks 24 of the largest U.S. lenders, has fallen for six straight weeks — its longest losing run since July 2008. It slipped another 1.1% on Monday, putting it on track for a seventh.

Annex Advisory Services LLC reduced its holdings in Morgan Stanley (NYSE:MS – Free Report) by 1.9% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 329,367 shares of the financial services provider’s stock after selling 6,373 shares during the quarter. Morgan Stanley accounts for about 1.0% of Annex Advisory Services LLC’s investment portfolio, making the stock its 27th largest holding. Annex Advisory Services LLC’s holdings in Morgan Stanley were worth $61,947,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Marquette Asset Management LLC raised its holdings in shares of Morgan Stanley by 143.4% during the second quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 76 shares during the period. Atlatl Advisers LLC acquired a new position in Morgan Stanley in the 2nd quarter worth $28,000. Hughes Financial Services LLC increased its holdings in Morgan Stanley by 55.7% during the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider’s stock worth $29,000 after purchasing an additional 49 shares in the last quarter. Purpose Unlimited Inc. acquired a new stake in shares of Morgan Stanley in the 4th quarter valued at about $25,000. Finally, Security National Bank of SO Dak acquired a new stake in shares of Morgan Stanley in the 2nd quarter valued at about $31,000. Institutional investors and hedge funds own 84.19% of the company’s stock.

Morgan Stanley Price Performance
NYSE:MS opened at $180.73 on Friday. Morgan Stanley has a 1-year low of $152.80 and a 1-year high of $232.25. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65. The firm has a fifty day simple moving average of $204.40 and a 200 day simple moving average of $203.48. The stock has a market capitalization of $285.07 billion, a PE ratio of 14.45, a P/E/G ratio of 1.21 and a beta of 1.22.

Morgan Stanley (NYSE:MS – Get Free Report) last announced its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $3.03 EPS for the quarter, beating analysts’ consensus estimates of $2.93 by $0.10. Morgan Stanley had a net margin of 15.63% and a return on equity of 19.40%. The firm had revenue of $20.34 billion during the quarter, compared to analysts’ expectations of $19.93 billion. During the same quarter last year, the company posted $2.80 earnings per share. The company’s revenue for the quarter was up 11.6% compared to the same quarter last year. On average, research analysts expect that Morgan Stanley will post 12.64 EPS for the current fiscal year.
Morgan Stanley Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be paid a $1.15 dividend. This represents a $4.60 annualized dividend and a yield of 2.5%. The ex-dividend date is Friday, October 30th. Morgan Stanley’s dividend payout ratio (DPR) is 37.19%.

Morgan Stanley announced that its board has initiated a stock repurchase plan on Wednesday, June 24th that allows the company to buy back $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 5.6% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

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

Positive Sentiment: Record wealth-management results, including approximately $9.1 billion in revenue, strong net new assets and $10.5 trillion in wealth assets, reinforced Morgan Stanley’s long-term growth strategy. Morgan Stanley Q3 profit hits $4.9bn on wealth gains and IPO inflows
Positive Sentiment: Equities trading revenue surged 41% year over year, helping drive the earnings and revenue outperformance. Management also highlighted opportunities from AI financing and disciplined capital allocation. Morgan Stanley Q3 Earnings Call Highlights Wealth and AI Strategy
Positive Sentiment: Morgan Stanley declared a quarterly dividend of $1.15 per share, equivalent to $4.60 annually and a stated yield of about 2.5%, providing ongoing shareholder support.
Neutral Sentiment: Analyst sentiment remains mixed: JPMorgan raised its target to $198 while maintaining a Neutral rating, but Citigroup, TD Cowen and KBW lowered their targets to $190, $205 and $230, respectively. Morgan Stanley Analysts Cut Their Forecasts After Q3 Results
Negative Sentiment: Investors appeared concerned that growth was concentrated in equities and trading, while profitability metrics and the business mix were less compelling. The strong beat therefore did not translate into higher valuation expectations. Morgan Stanley Beats on Earnings, But Shares Fall on Trading Mix

Analyst Upgrades and Downgrades
MS has been the topic of a number of research reports. Royal Bank Of Canada cut their price target on Morgan Stanley from $243.00 to $195.00 and set a “sector perform” rating on the stock in a report on Thursday. UBS Group decreased their price objective on Morgan Stanley from $260.00 to $236.00 and set a “buy” rating for the company in a report on Monday, October 5th. Oppenheimer downgraded Morgan Stanley from a “market perform” rating to an “underperform” rating in a report on Tuesday, June 30th. Erste Group Bank lowered Morgan Stanley from a “buy” rating to a “hold” rating in a research report on Thursday, October 8th. Finally, Citigroup cut their target price on Morgan Stanley from $210.00 to $190.00 and set a “neutral” rating on the stock in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $214.86.

Check Out Our Latest Research Report on MS

About Morgan Stanley
(Free Report)

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

Read More

Five stocks we like better than Morgan Stanley
Bank of America Stock Sell-Off Looks Like a Buying Opportunity
AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff?
GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking
Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

Want to see what other hedge funds are holding MS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Morgan Stanley (NYSE:MS – Free Report).

Receive News & Ratings for Morgan Stanley Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Morgan Stanley and related companies with MarketBeat.com's FREE daily email newsletter.

3.2K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Morgan Stanley (NYSE:MS) on Wednesday reported better-than-expected third-quarter 2026 results.

SummaryS&P 500® and Nasdaq hit fresh all-time highs, but market breadth remains exceptionally thin. Tech is the only sector at record levels.Initial Q3 results show robust strength, headlined by Micron’s YoY EPS surge, yet sell-side estimate cuts recently outnumbered raises for the first time in months.Reports from major banks (JPM, WFC, C, GS, MS, BAC) will serve as a crucial real-time check on net interest income, loan demand, and overall consumer credit health. alexskopje/iStock via Getty Images

Originally published on October 12, 2026

Strong Early Q3 Beats vs. Decelerating Revisions Both the S&P 500 and the Nasdaq Composite closed at all-time highs last Wednesday, powered by continued momentum across mega-cap growth. However, beneath the surface, the

398 Followers

Morgan Stanley (MS) Q3 2026 Earnings Call October 14, 2026 9:30 AM EDT

Company Participants

Ted Pick - CEO & Chairman of the Board
Sharon Yeshaya - Executive VP & CFO

Conference Call Participants

Steven Chubak - Wolfe Research, LLC
Brennan Hawken - BMO Capital Markets Equity Research
Glenn Schorr - Evercore ISI Institutional Equities, Research Division
Chinedu Bolu - Autonomous Research US LP
Michael Mayo - Wells Fargo Securities, LLC, Research Division
Daniel Fannon - Jefferies LLC, Research Division
Ebrahim Poonawala - BofA Securities, Research Division
Devin Ryan - Citizens JMP Securities, LLC, Research Division
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
L. Erika Penala - UBS Investment Bank, Research Division
Scott Siefers
Benjamin Gerlinger - Citigroup Inc., Research Division

Presentation

Operator

Good morning. Welcome to Morgan Stanley's Third Quarter 2026 Earnings Call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. The call is being recorded. During today's presentation, we will refer to our earnings release and financial supplement, copies of which are available at morganstanley.com.

Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Morgan Stanley does not undertake to update the forward-looking statements in this discussion. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release. This presentation may not be duplicated or reproduced without our consent.

I will now turn the call over to Chairman and Chief Executive Officer, Ted Pick.

Ted Pick
CEO & Chairman of the Board

Thank you, operator. Good morning, and thank you for joining us. In the third quarter, Morgan Stanley delivered strong performance on the top and bottom lines with firm-wide revenue of $20.3 billion and earnings per share of $3.03. With a return on tangible equity of 22.6%, this quarter marks our fifth consecutive quarter above 20%, speaking to

Copeland Capital Management LLC decreased its position in shares of Morgan Stanley (NYSE:MS – Free Report) by 5.4% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 108,216 shares of the financial services provider’s stock after selling 6,172 shares during the quarter. Copeland Capital Management LLC’s holdings in Morgan Stanley were worth $20,353,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of MS. Mitsubishi UFJ Financial Group Inc. bought a new position in shares of Morgan Stanley in the 2nd quarter worth $78,825,883,310. Bank of America Corp DE grew its position in Morgan Stanley by 0.5% in the 1st quarter. Bank of America Corp DE now owns 16,326,676 shares of the financial services provider’s stock valued at $2,686,881,000 after purchasing an additional 87,533 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Morgan Stanley by 1.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,206,144 shares of the financial services provider’s stock valued at $2,342,532,000 after purchasing an additional 188,296 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Morgan Stanley by 4.5% during the 1st quarter. Bank of New York Mellon Corp now owns 9,794,288 shares of the financial services provider’s stock valued at $1,611,846,000 after purchasing an additional 422,775 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in Morgan Stanley by 0.9% during the first quarter. Dimensional Fund Advisors LP now owns 7,235,756 shares of the financial services provider’s stock worth $1,190,585,000 after buying an additional 65,739 shares during the last quarter. Institutional investors own 84.19% of the company’s stock.

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

Positive Sentiment: Morgan Stanley’s earnings release is the immediate catalyst. Options markets are targeting a potential move toward roughly $205, suggesting significant volatility and the possibility of a relief rally if results and guidance exceed subdued expectations. ASML Could Swing $34.8 Billion After Earnings Positive Sentiment: The company is reportedly planning to support tokenized equities on its alternative trading system, adding to its longer-term technology and digital-assets narrative. Morgan Stanley Plans Tokenized Equities Support Neutral Sentiment: Analysts and market commentators are focused on wealth-management flows, asset levels, custody activity, investment-banking revenue and the effect of rising rates. The stock may be “priced for disappointment,” creating upside if operating results are resilient. What to Watch When Morgan Stanley Reports Negative Sentiment: Investment sentiment has weakened after Morgan Stanley’s earlier rally toward $230, as expectations for M&A and IPO growth cooled. Higher Treasury yields, a stronger dollar and elevated energy prices are also tightening financial conditions, potentially pressuring dealmaking and financing activity. Morgan Stanley Stock Selloff Cools Ahead of Earnings Negative Sentiment: Erste Group Bank trimmed its fiscal 2026 EPS estimate slightly to $12.79 from $12.83 and maintained a Hold rating. Although the revised estimate remains above the broader $12.66 consensus, the reduction reinforces caution ahead of earnings. Morgan Stanley Analyst Estimate Update Morgan Stanley Stock Down 1.8% Morgan Stanley stock opened at $186.61 on Wednesday. Morgan Stanley has a fifty-two week low of $151.88 and a fifty-two week high of $232.25. The stock has a market cap of $294.33 billion, a PE ratio of 15.36, a price-to-earnings-growth ratio of 1.26 and a beta of 1.22. The firm’s 50-day simple moving average is $206.49 and its 200 day simple moving average is $203.34. The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.79 and a current ratio of 0.79. Morgan Stanley (NYSE:MS – Get Free Report) last posted its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 EPS for the quarter, topping the consensus estimate of $2.89 by $0.57. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm had revenue of $21.35 billion for the quarter, compared to analysts’ expectations of $19.67 billion. During the same quarter last year, the firm earned $2.13 EPS. The company’s quarterly revenue was up 27.1% compared to the same quarter last year. Research analysts predict that Morgan Stanley will post 12.66 EPS for the current fiscal year.

Morgan Stanley declared that its board has authorized a stock buyback program on Wednesday, June 24th that allows the company to buy back $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 5.6% of its shares through open market purchases. Share repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets A number of brokerages have recently issued reports on MS. Erste Group Bank cut shares of Morgan Stanley from a “buy” rating to a “hold” rating in a report on Thursday, October 8th. BMO Capital Markets decreased their target price on shares of Morgan Stanley from $250.00 to $215.00 and set an “outperform” rating for the company in a research report on Tuesday, October 6th. Citigroup lowered their target price on shares of Morgan Stanley from $235.00 to $210.00 and set a “neutral” rating on the stock in a report on Wednesday, September 30th. Zacks Research cut shares of Morgan Stanley from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 30th. Finally, Jefferies Financial Group raised shares of Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $219.43.

Get Our Latest Research Report on Morgan Stanley

Morgan Stanley Profile (Free Report)

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

Recommended Stories Five stocks we like better than Morgan Stanley A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? Could T-Mobile’s Satellite Competition Fears Create a Buying Opportunity? Surgical Precision, Sustainable Returns: Johnson & Johnson Secures Its Cash Flow Runway Tesla’s Robotaxi Lands in Paris—But Europe’s Real Fight Is Over Cheap EVs Want to see what other hedge funds are holding MS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Morgan Stanley (NYSE:MS – Free Report).

Receive News & Ratings for Morgan Stanley Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Morgan Stanley and related companies with MarketBeat.com's FREE daily email newsletter.

Morgan Stanley MS saw its stock decline today, despite surpassing earnings expectations in its Q3 report. The firm reported earnings per share (EPS) of $3.03, which, while an upside surprise, was less pronounced than in previous quarters. Revenue rose by 11.6% year-over-year to $20.34 billion, with growth in both Institutional Securities and Wealth Management, although results showed a sequential decline due to reduced market activity in September.

Institutional Securities revenue increased by 18% year-over-year to $10.03 billion, but fell 9% quarter-over-quarter. Investment Banking revenue grew by 2% to $2.16 billion, though it declined 11% from the previous quarter, with stronger advisory activity somewhat offset by weaker underwriting. Equities revenue surged 41% to $5.80 billion, bolstered by prime brokerage financing and derivatives, but saw an 8% decline quarter-over-quarter. Fixed Income revenue decreased by 7% year-over-year and 18% quarter-over-quarter to $2.01 billion, impacted by weaker securitized products and commodities. Wealth Management achieved record revenue of $9.07 billion, a 10% year-over-year increase and a 2% rise quarter-over-quarter, driven by higher asset management fees and net interest income growth. Net new assets reached $232 billion, with over half attributed to IPO-related flows. However, Investment Management revenue fell 12% to $1.46 billion due to a carried-interest reversal. The sequential decline in performance aligns with trends observed among banking peers. Goldman Sachs GS reported a 72% year-over-year increase in equities revenue, despite a 13% decline quarter-over-quarter. Both firms faced weaker fixed-income trading sequentially, with GS down 24% quarter-over-quarter, while investment banking fees for GS rose 21% year-over-year but fell 5% sequentially. Profitability and operating efficiency showed a sequential decline, with the expense efficiency ratio rising to 67% from 65%, and return on tangible common equity (ROTCE) dropping to 22.6% from 26.6%. Management remains optimistic about investment banking, citing a strong advisory and capital markets pipeline, and anticipates modest growth in Wealth Management net interest income for Q4. Overall, Morgan Stanley MS delivered a solid quarter, reflecting broader trends across the banking sector, as capital markets activity moderated from elevated levels in Q2, particularly in September. While weaker fixed-income trading and underwriting impacted performance, the equities segment performed relatively well, and Wealth Management continued to be a crucial growth driver. Management's confidence in investment banking pipelines indicates healthy underlying corporate demand, despite the recent slowdown, although short-term performance is likely to be influenced by broader market conditions.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Key Takeaways MS reported Q3 earnings of $3.03 per share, beating estimates, as net revenues rose 11.6% to $20.34 billion.Equity revenues surged 40.9% to $5.8 billion, driving a 17.7% rise in Institutional Securities revenues.Wealth Management revenues hit a record $9.07 billion, while total client assets rose to $8.43 trillion.
Morgan Stanley’s (MS - Free Report)  third-quarter 2026 earnings of $3.03 per share topped the Zacks Consensus Estimate of $2.83. The bottom line rose 8.2% from the year-ago quarter.

Net income applicable to the company increased 6.5% to $4.91 billion.

Net revenues rose 11.6% year over year to $20.34 billion, surpassing the consensus estimate of $19.74 billion.

Total non-interest revenues increased 8.6% year over year to $17.09 billion. Trading revenues climbed 11.6% to $5.60 billion, while consolidated investment banking (IB) revenues grew 4.2% to $2.36 billion. Commissions and fees increased to $1.67 billion from $1.47 billion. Net interest income (NII) surged 30.5% to $3.25 billion.

Morgan Stanley's Costs Rise With Business ActivityTotal non-interest expenses increased 12.4% year over year to $13.71 billion. Compensation and benefits costs climbed 7.5% to $8 billion, reflecting higher revenues across the business.

Non-compensation expenses rose 20.2% to $5.72 billion. Brokerage, clearing and exchange fees increased 28.6% to $1.47 billion, while information processing and communications costs jumped 16.4% to $1.3 billion.

The expense efficiency ratio was 67%, unchanged from the prior-year quarter, while the firmwide pre-tax margin declined to 32% from 33%.

MS Institutional Securities Gains From Equity ActivityInstitutional Securities net revenues increased 17.7% year over year to $10.03 billion. Equity revenues surged 40.9% to $5.8 billion on robust client engagement across businesses and regions, particularly in Asia. Advisory revenues climbed 29.7% to $887 million, reflecting increased completed merger and acquisition activity in the Americas.

The gains were partly offset by a 7.3% decline in fixed-income revenues to $2.01 billion, stemming from weaker credit and commodities performance. Equity underwriting revenues fell 19.5% to $525 million, while fixed income underwriting revenues declined 3.2% to $747 million.

Segment pre-tax income improved 9.1% to $3.47 billion, although the pre-tax margin narrowed to 35% from 37%.

Morgan Stanley's Wealth Business Hits Revenue RecordWealth Management net revenues rose 10.1% year over year to a record $9.07 billion. Asset management revenues jumped 15.8% to $5.54 billion on higher market levels and accumulated fee-based flows. NII increased 11.9% to $2.23 billion, benefiting from lending growth and higher average sweep deposits.

As of Sept. 30, 2026, total client assets reached $8.43 trillion, up 19.5% year over year. Fee-based client assets grew to $3.16 trillion, while fee-based flows surged to $80.5 billion from $41.9 billion.

The segment generated record pre-tax income of $2.75 billion and a pre-tax margin of 30.4%.

MS Investment Management Faces Performance Fee PressureInvestment Management net revenues declined 11.6% year over year to $1.46 billion. Asset management and related fees increased 2% to $1.57 billion, aided by higher average assets under management. However, performance-based income and other revenues swung to a loss of $106 million from income of $117 million, reflecting a reversal of accrued carried interest tied primarily to investments in a private fund.

Assets under management or supervision rose 13.2% to $2.05 trillion as of Sept. 30, 2026. Long-term net inflows totaled $15.8 billion, with positive fixed-income and alternatives flows partly offset by equity outflows.

Segment pre-tax income fell 28.8% to $259 million.

Morgan Stanley Share Repurchase UpdateMS repurchased $1.54 billion of common stock during the quarter compared with $1.09 billion a year earlier.

Our View on Morgan StanleyThe decent IB business performance and an impressive deal-making pipeline are expected to support Morgan Stanley’s financials. Efforts to become less dependent on capital markets-driven revenues and inorganic expansion/strategic alliances will boost top-line growth. However, elevated expenses and volatile trading revenues are concerns.
 

Currently, Morgan Stanley carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Morgan Stanley’s PeersGoldman Sachs’ (GS - Free Report) third-quarter 2026 earnings per share were $17.01, which topped the Zacks Consensus Estimate by 31.9%. The metric also jumped 39% from $12.25 a year ago.

Driven by market volatility, Goldman posted record net revenues in Equities, while its fixed income, currencies and commodities revenues were relatively stable. A solid deal-making activity led to robust growth in IB fees. The company’s Asset & Wealth Management division posted solid revenue growth. However, a rise in expenses was an undermining factor.

JPMorgan (JPM - Free Report) posted third-quarter 2026 adjusted earnings of $5.75 per share, which missed the Zacks Consensus Estimate of $5.94. After considering the net investment securities losses of 18 cents, earnings were $5.57 per share, up 9.9% from the year ago.

Strong equity markets and IB activity powered core growth, while NII got support from decent loan demand. Lower provisions also offered support. However, an increase in operating expenses and lower fixed income markets revenues were the undermining factors for JPMorgan.

Jamie Dimon says dangerous forces are shifting beneath a seemingly calm surface, and the stock market tells a strikingly similar story. The index near record highs conceals a hidden collapse spreading quietly across hundreds of stocks.

Yahoo Finance and Stocktwits both reported on Oct. 13 that JPMorgan Chase (NYSE:JPM | JPM Price Prediction) chief executive Jamie Dimon had warned that large fiscal deficits, sticky inflation, high asset prices, rising interest rates and geopolitical conditions “continue to shift under the surface.” He said these forces may be manageable and that the bank remains prepared for a wide range of outcomes. Stocktwits also reported that he said the U.S. economy remains strong, citing business investment and steady consumer spending.

The stock market has a similar gap between the surface and what lies beneath it. In this article, a bear market means a drop of more than 20% from a peak. Some of the counts below start from June highs and others from 52-week highs. Most of the figures come from secondary coverage.

Dimon Has Sounded This Alarm Before Coverage dates the following wording to July. Dimon wrote that “several risks are shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices.” He added that the firm cannot predict how these forces will play out and that they could cause significant disruptions.

The bank also slowed its buybacks. TIKR data show gross repurchases of about $1.06 billion in the third quarter, down from about $6.70 billion in the second. Yahoo Finance called the cut “the bigger story.”

Half of Russell 3000 Stocks Sit in Bear Territory Mike Wilson, chief equity strategist at Morgan Stanley (NYSE:MS), reported that 51% of Russell 3000 stocks are down more than 20% from their June highs. Two weeks earlier, the figure was just over 40%. These numbers come from reposts of his Oct. 5 note and may have changed since. Yahoo Finance Canada covered his breadth concerns as early as Sept. 28.

The S&P 500 counts below use 52-week highs, so they cannot be compared with Wilson’s June-high figure. TheTradingTools put 34.8% of index members more than 20% below their 52-week highs at the Oct. 9 close. MarketWatch put the share at 44%. Wilson reported that the median S&P 500 stock sits 16% below its 52-week high.

Capital Blueprint reported that 96% of semiconductor stocks are down more than 20% from their June highs, compared with about 4% of banks. Citing Citadel Securities, Capital Blueprint also said four companies added about 300 index points over three quarters: Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL) and Meta Platforms. Over the same stretch, the remaining 496 members took off about 150.

Counterarguments Carry Real Weight On Oct. 2, Opening Bell Daily argued that “narrow market breadth doesn’t mean a bear market is coming.” Capital Blueprint, citing Bloomberg, reported that more S&P 500 stocks hit 52-week lows than highs on 17 of the last 18 trading days. In the past, that pattern has usually shown up near a post-selloff low, and stocks then rose.

Dimon’s own wording is hedged, and he predicted nothing. The quarter also held up. Revenue rose 8% from a year earlier, profit increased, and the chief financial officer said “the consumer is currently very healthy.”

JPMorgan Shares Slipped After an Intraday Rebound JPMorgan shares fell in premarket trading on the earnings miss and recovered through the session, but still closed down 0.82%. The stock traded at $331.57 as of the Oct. 13 delayed quote. A Stocktwits headline said the stock gained despite the miss, which differs from the closing move. Over the past month the shares are down 6.46%, and year to date they are up 4.87%.

Bond Volatility Holds the Key The Dark Side Of The Boom reported on Oct. 5 that, in Wilson’s view, bond volatility will decide how the weak breadth gets fixed. The 10-year Treasury yield was 5.24% on Oct. 9, close to the level he cited. Reports described his conditional scenario: if bond volatility remains high, the S&P 500 could fall about 6% to roughly 7,300 over the following month.

Separately, Motley Fool reported that the Shiller price-to-earnings ratio has crossed 40 for only the second time. This valuation measure is separate from breadth, though the combination of high multiples and narrowing leadership is exactly the setup we walked through in a free handbook on riding a mania without giving it all back.

Investors should watch bond volatility and whether breadth broadens, or whether the index follows the median stock lower.

Contact [email protected] for any questions or corrections.

Did Morgan Stanley (MS) Justify Its 4.3% Overvaluation with Q3 Earnings Beat? EPS: $3.03 vs. Estimate of $2.92, Revenue: $20.3B Key Highlights: Strong Revenue Growth and Solid EPS Performance

Morgan Stanley MS released its 8-K filing on October 14, 2026, reporting net revenues of $20.3 billion for the third quarter ended September 30, 2026. This performance reflects a significant increase from $18.2 billion during the same period a year ago. The firm also achieved earnings per diluted share (EPS) of $3.03, which surpassed analyst estimates of $2.92. Furthermore, a return on tangible common equity (ROTCE) of 22.6% underscores its financial resilience.

Morgan Stanley is a leading global financial services firm providing a wide array of investment banking, securities, wealth management, and investment management services to a diverse client base, including corporations, governments, institutions, and individuals in over 40 countries. The company is structured into three primary segments—Institutional Securities, Wealth Management, and Investment Management—allowing it to leverage different market opportunities and client needs effectively.

Performance Overview and ChallengesThe financial results reflect a strong momentum within both the Institutional Securities and Wealth Management segments. Institutional Securities reported notable revenue growth to $10.0 billion, buoyed by various factors including enhanced equity performance and strategic client engagements. Meanwhile, Wealth Management achieved record revenues of $9.1 billion, demonstrating the firm's capability to attract significant new business despite a competitive landscape.

However, Morgan Stanley faced challenges with fixed income revenues showing a slight decrease. This decline can be attributed to lower performance in certain areas, particularly commodities and structured products. The current economic environment's unpredictability may pose risks to maintaining such robust performance levels moving forward.

Financial Achievements and Industry ImplicationsMorgan Stanley's strong third-quarter results not only illustrate the firm's operational efficiency but also highlight the importance of robust client relationships and market positioning. With a ROTCE of 22.6%, the firm continues to deliver strong returns, which is crucial in an industry focused on capital markets and investor confidence. Additionally, the record net new asset influx of $232 billion in Wealth Management underscores the firm’s efficacy in expanding its asset base and retaining client trust.

The firm's effective expense management is apparent, with an expense efficiency ratio staying consistent at 67%. This demonstrates a balanced approach to growth, ensuring that revenue increases translate effectively into profitability.

Financial Metrics ($ millions)3Q 20263Q 2025Net Revenues$20,338$18,224Net Income Applicable to MS$4,909$4,610Earnings per Diluted Share$3.03$2.80ROTCE22.6%23.5%Book Value per Share$68.59$62.98

Analysis of PerformanceThe results from Morgan Stanley illustrate an impressive execution strategy that not only improved the top line but also maintained strong net income margins. Enhanced client engagement in the Institutional Securities segment, combined with robust fee-based revenue streams in Wealth Management, reflects a well-executed strategic integration across the firm's business units. Nevertheless, maintaining momentum will require adaptive strategies, particularly in navigating fluctuations in market conditions affecting fixed income and commodities.

GuruFocus Valuation CheckAccording to GuruFocus data, Morgan Stanley MS currently holds a GF Score of 82 out of 100, indicating a strong overall rating. The GF Value of $178.87 suggests that the stock is presently undervalued, trading at $186.64, which represents a 4.3% overvaluation when compared to its intrinsic value.

In terms of financial stability, the firm has a low Financial Strength score of 1 out of 10 but boasts a strong Profitability Rank of 8 out of 10 and a Growth Rank of 10 out of 10, illustrating its excellent ability to generate profits and maintain strong growth rates. The predictability of earnings is rated 4 stars, suggesting steady performance over time, while the Moat Score of 7 out of 10 implies a moderate competitive advantage. Importantly, insider activity shows that insiders sold $51.7 million worth of stock over the past 12 months, which may serve as a cautionary signal for investors.

For a deeper dive, visit the Morgan Stanley stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from Morgan Stanley for further details.

GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $178.87 (4.3% overvalued); its GF Score™ is 82/100; 17 gurus currently hold the stock, with 10 adding and 7 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Morgan Stanley MS research.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Morgan Stanley (NYSE:MS), the US investment bank and wealth manager, reported a 12% rise in third-quarter revenue to $20.3 billion as strong equity trading and record wealth management income offset weaker fixed-income markets.

Net income attributable to Morgan Stanley (NYSE:MS) increased 6% to $4.9 billion in the three months to 30 September, while diluted earnings per share rose 8% to $3.03 from $2.80 a year earlier.

The bank’s institutional securities division generated $10 billion in revenue, up 18% year on year, with equity revenue jumping 41% to $5.8 billion due to stronger client activity and performance in Asia.

Investment banking revenue increased 2% to $2.2 billion, supported by higher advisory fees as completed mergers and acquisitions activity increased in the Americas.

However, fixed-income revenue fell 7% to $2 billion, reflecting weaker performance in securitised products and commodities, while lower initial public offerings and block trades weighed on equity underwriting.

That sent shares down 2.8% in premarket trading on Wednesday.

Wealth management delivered record revenue of $9.1 billion, an increase of 10%, as higher asset management fees and net interest income supported the division’s performance.

The business attracted $232 billion in net new assets during the quarter, compared with $81 billion a year earlier, while fee-based asset flows nearly doubled to $80.5 billion from $41.9 billion.

Morgan Stanley (NYSE:MS)’s investment management division was a weaker performer, with revenue falling 12% to $1.5 billion as lower performance-based income and the reversal of accrued carried interest outweighed growth in asset management fees.

The division’s pre-tax income declined to $259 million from $364 million a year earlier.

Total expenses rose 12% to $13.7 billion, reflecting higher compensation, technology spending and execution-related costs, while the provision for credit losses increased to $148 million from zero.

The bank reported a return on tangible common equity of 22.6%, down from 23.5% a year earlier, while its standardised Common Equity Tier 1 capital ratio eased to 14.9% from 15.1%.

Morgan Stanley repurchased $1.5 billion of its shares during the quarter and declared a quarterly dividend of $1.15 per share, payable on 13 November to shareholders on record as of 30 October.

The results extend the bank’s year-to-date momentum, with revenue for the first nine months of 2026 rising 18% to $62.3 billion and net income attributable to Morgan Stanley increasing 29% to $16.1 billion.

Morgan Stanley saw third quarter profit rise as the firm's equity traders topped analysts' estimates and a record amount of money was brought in by the bank's wealth-management operation. Kristine Aquino reports on Bloomberg Television.

Morgan Stanley posted third-quarter results that beat expectations on blockbuster results in its equities trading franchise.

Here's what the company reported:

Earnings per share: $3.03 vs. $2.91 LSEG estimateRevenue: $20.34 billion vs. $19.95 billion estimate The company said profit climbed 6.5% to $4.91 billion, or $3.03 a share. Revenue climbed 12% to $20.34 billion.

The firm's equities trading division, long a marquee business for Morgan Stanley, posted a 41% increase in revenue to $5.79 billion, exceeding the StreetAccount estimate by about $909 million.

Morgan Stanley cited widespread strength across its equities products and regions, but cited Asia as a source of particular strength in the quarter. The gains in that business helped offset disappointments elsewhere.

Fixed income trading revenue fell 7% to $2.01 billion, driven by declines in credit and commodities, which is roughly $260 million below expectations.

Analysts will want to know what CEO Ted Pick has to say on the outlook for mergers and IPOs for the rest of the year amid the churn caused by rising interest rates.

This story is developing. Please check back for updates.

NEW YORK--(BUSINESS WIRE)--Morgan Stanley (NYSE: MS) today announced its third quarter 2026 financial results. The results are now available on the Firm's Investor Relations website at www.morganstanley.com/about-us-ir/earnings-releases. The results will be filed on a Form 8-K with the Securities and Exchange Commission (SEC) on October 14, 2026, which will be available on the SEC's website at www.sec.gov. A conference call to discuss the results will be held today at 9:30 a.m. (ET). The call w.

A federal judge has extended White House access for CNN, MS NOW and ‌Politico journalists, deciding on Tuesday that Donald Trump's attempt to ban them was unlawful.

The journalists originally had their access reinstated temporarily through an emergency order on 24 September by US District Judge Timothy Kelly, who has now elaborated on his decision.

The ruling will see the news organisations retain their access until a final judgment is reached in the lawsuit they brought, unless an appeals court lifts the order.

Judge Kelly wrote that Mr Trump's public remarks made clear that he banned the media outlets because he considered their reporting biased and inaccurate, rather than because of national security concerns as government lawyers later asserted in court.

"Simply put, that is unlawful viewpoint discrimination," the judge wrote, ⁠adding that "no one should read this decision as suggesting that President Trump's ⁠complaints are meritless."

The US president announced the ban in September on his social media platform, ‌saying CNN, Politico, and MS NOW "shouldn't be able to constantly write or report FICTION and LIES when they're covering the President of the United States".

The judge, who was appointed by Mr Trump in 2017, had held a hearing on 8 October to hear arguments from the news outlets and the Justice Department on whether to extend the protection for the journalists.

More on Donald Trump

Taiwan to buy 30% of Alaskan gas for next 20 years, Donald Trump hails 'one of biggest deals ever'

How did the new White House press secretary Katie ​Zacharia do?

Katie ​Zacharia makes her debut as Donald Trump's White House press secretary

The Justice Department defended the bans as fair and justified, while the outlets' attorney said the president "wants to coerce better coverage".

From September: The moment media outlets were allowed back in the White House

More from Sky News:
AI 'supercharging' security threats to UK, MI5 warns
UK economy to grow more than expected

The decision to extend the journalists' access coincided with the first media briefing by new White House press secretary Katie Zacharia, who took only a few questions from reporters during her 14-minute briefing.

Past presidents have battled with the press, but Mr Trump's campaign against the media has been unprecedented.

He has upended decades ‌of tradition by denying basic access to many major news organisations, launching personal attacks on journalists for their reporting, and elevating media outlets seen as more sympathetic to him.

He has also filed lawsuits against multiple news outlets.

powered by

Morgan Stanley (MS)

Buy MS. The selloff is driven by M&A/IPO cooling, but earnings are the near-term catalyst and the options market is pricing only moderate volatility. With MS still above its ascending trendline and the 50-week moving average, a rebound is the base case. Upside path: reclaim ~$200 first, then push toward ~$220 if results beat and guidance doesn’t confirm a deeper banking slowdown.

Key Risk: Earnings/guidance show a sharper investment-banking collapse than expected, breaking the ascending trendline and turning the rebound into a fresh downtrend.

MS 205 Calls

Buy MS 205 call exposure (or a call spread centered around 205). Options positioning is call-heavy and the market is targeting ~$205, suggesting upside skew into the print. If MS stabilizes/rebounds on earnings, calls should outperform stock because implied volatility is already elevated versus history and the move can trigger a fast repricing.

Key Risk: MS misses or guides lower enough that the stock trades below ~$200, causing call premium to decay quickly despite any volatility.

Morgan Stanley stock has slipped substantially in the past few weeks as enthusiasm about mergers and acquisitions (M&A) and IPOs cooled. MS initially jumped to $230 in July and then tumbled to a low of $182.62. Focus now shifts to its upcoming earnings, with the options market pointing to moderate volatility.

Morgan Stanley stock has come under pressure in the past few weeks as recent data shows that mergers and acquisitions activity has cooled. A recent report showed that global M&A activity totalled $993 billion in the third quarter, down 41% compared to the second quarter. It marked the first quarter that the figure dropped below $1 trillion since the second quarter of last year.

Morgan Stanley is highly exposed to the M&A business because it is one of the biggest names in the industry. Dealogic data shows that it has advised deals worth over $1.084 trillion this year, up from $892 billion in the same period last year. It ranks as the third-largest bank after Goldman Sachs and JPMorgan.

Morgan Stanley also ranks as the third-biggest bank in equity capital markets after Goldman and JPMorgan. Its ECM value has jumped to $73.2 billion from $58 billion last year. In total, Dealogic estimates that its investment banking revenue stands at over $5.88 billion from $4.7 billion.

READ MORE: Morgan Stanley: look for opportunities in these two markets

The next important catalyst for Morgan Stanley stock is the upcoming earnings announcement, which will provide more color about its business. Yahoo Finance data shows that the average estimate is that its third-quarter revenue rose by 10% to $20.1 billion, with the earnings-per-share (EPS) rising from $2.8 to $2.92. The company often beats estimates, and this trend may continue. 

The last earnings report showed that Morgan Stanley’s institutional securities revenue rose to $11.04 billion in Q2 from $7.6 billion in the same period last year. Its wealth management revenue rose from $7.7 billion to $8.8 billion, while the smaller investment management segment made $1.6 billion.

The options market expects moderate volatility when it publishes its financial results. Data shows that it has an implied volatility of 51%, up from its historical average of $20. Most of the calls are concentrated at $205, up by about 8% from the current level. It has a put/call ratio of less than 0.50, a sign that there are more calls than puts. 

MS stock chart | Source: TradingView

The weekly chart shows that the MS stock has retreated in the past few weeks. It dropped in the last six consecutive weeks as investors brace for weak earnings. On the positive side, it has remained above the ascending trendline that links the lowest levels in April last year, March this year, and September. It also coincided with the 50-week moving average.

Therefore, there is a likelihood that the stock will rebound after earnings. If this happens, the next initial target to watch will be at $200. A move above that level will point to more gains towards $220. A move below the ascending trendline will invalidate the bullish outlook.

Jason Goldberg, Barclay's U.S. large cap ban analyst, joins 'Closing Bell Overtime' to talk the upcoming slate of bank earnings and the state of the sector.

908 Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Readers are advised to fact-check thoroughly before committing any capital to this idea; this reflects the personal views of the author and should not be pursued as formal financial or investment advice in any manner. While every effort has been made to ensure accuracy, errors may exist in the data and financial projections presented. The author is not responsible for any financial gains or losses incurred from investments made based on this content.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Last year, Morgan Stanley (MS +1.38%) released a report detailing how humanoid robots could become a $5 trillion market by 2050. While it may seem unrealistic now, the rapid advances of artificial intelligence (AI) technology can gradually make humanoid robots mainstream in multiple industries. If that happens, these three stocks could be some of the top beneficiaries.

Micron Micron (MU -0.66%) creates memory chips that robots will need for real-time AI inference and sensor processing. It also helps robots store information and process software updates.

Premium Feature

Moneyball Superscore

91/100

Today's Change

(

-0.66

%) $

-6.84

Current Price

$

1,029.00

You don't have to guess which robotics companies will gain the most market share in the humanoid robot industry with Micron. The chipmaker is already thriving amid the AI boom, with revenue up by 379% year over year in its fiscal 2026 fourth quarter. Micron is well aware of the opportunity and recently cited humanoid robots as a key driver of future memory chip demand.

Image source: Getty Images.

Tesla Tesla (TSLA +2.05%) makes most of its money from electric vehicles, but sees its Optimus humanoid robots as its key source of value. CEO Elon Musk believes Optimus can turn Tesla into a $25 trillion company. This would imply more than a 15x return from current levels.

Premium Feature

Moneyball Superscore

65/100

Today's Change

(

2.05

%) $

7.70

Current Price

$

382.70

It's an ambitious target, but that type of goal matches up with Musk's personality. Tesla's Optimus robots are well developed and position it to be one of the leaders in the industry. Total revenue is on the upswing, up by 26% year over year in the second quarter.

Most of the investment thesis hinges on humanoid robots becoming mainstream and Tesla's Cybercabs delivering autonomous rides for many consumers. Those catalysts and Musk's involvement help to justify a high valuation, similarly to how Space Exploration Technologies (SPCX +1.25%) has become a $2 trillion company under Musk's watch. It's hard to bet against Musk in the long run.

Alphabet Alphabet (GOOG +0.87%) (GOOGL +0.97%) may have the most ways to tap into the humanoid robot boom. Its cloud platform is critical for large-scale AI models, and those models are essential for humanoid robots. Furthermore, Alphabet has its own AI model, Gemini, which can be used for a humanoid robot company or a potential humanoid product from Alphabet in the future.

The tech giant is also selling its own AI chips and recently launched some of them into space to test orbital data centers. Those chips can be the preferred choice for some humanoid robot companies in the future, but Alphabet would be competing with companies like Nvidia in that industry.

Finally, Alphabet has its own robotics company in Waymo. The company's self-driving vehicles deliver more than 500,000 paid robotaxi rides per week. Waymo is establishing itself as the market leader for autonomous rides. While it's not necessarily humanoid robots, Waymo demonstrates how much market share Alphabet already has in the broader robotics industry.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Micron Technology, Nvidia, and Tesla. The Motley Fool has a disclosure policy.

MS faces a challenging Q3 earnings outlook amid rising costs and muted deal activity, despite solid trading prospects and long-term growth potential.

In the latest close session, Morgan Stanley (MS - Free Report) was down 1.2% at $187.44. The stock's change was less than the S&P 500's daily loss of 0.47%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 1.25%.

Coming into today, shares of the investment bank had lost 11.91% in the past month. In that same time, the Finance sector lost 5.13%, while the S&P 500 gained 1.15%.

The investment community will be closely monitoring the performance of Morgan Stanley in its forthcoming earnings report. The company is scheduled to release its earnings on October 14, 2026. The company's upcoming EPS is projected at $2.88, signifying a 2.86% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $19.71 billion, up 8.15% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.68 per share and revenue of $81.75 billion. These totals would mark changes of +24.19% and +15.72%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Morgan Stanley. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.09% lower. Right now, Morgan Stanley possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Morgan Stanley is presently trading at a Forward P/E ratio of 14.96. This represents a premium compared to its industry average Forward P/E of 13.08.

Meanwhile, MS's PEG ratio is currently 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MS's industry had an average PEG ratio of 0.86 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Morgan Stanley (NYSE:MS – Get Free Report) was the recipient of some unusual options trading activity on Thursday. Investors bought 26,930 call options on the stock. This is an increase of 63% compared to the average daily volume of 16,516 call options.

Analyst Ratings Changes MS has been the topic of several research analyst reports. UBS Group decreased their price target on shares of Morgan Stanley from $260.00 to $236.00 and set a “buy” rating on the stock in a report on Monday. The Goldman Sachs Group raised their price target on Morgan Stanley from $211.00 to $233.00 and gave the company a “neutral” rating in a report on Monday, July 6th. Citigroup dropped their price target on Morgan Stanley from $235.00 to $210.00 and set a “neutral” rating for the company in a research report on Wednesday, September 30th. Erste Group Bank lowered Morgan Stanley from a “strong-buy” rating to a “hold” rating in a report on Friday, September 18th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $243.00 target price on shares of Morgan Stanley in a research note on Monday, July 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Morgan Stanley has a consensus rating of “Moderate Buy” and a consensus target price of $219.90.

Get Our Latest Report on Morgan Stanley

Institutional Trading of Morgan Stanley Large investors have recently bought and sold shares of the company. Vann Equity Management LLC raised its holdings in Morgan Stanley by 3.0% in the third quarter. Vann Equity Management LLC now owns 10,653 shares of the financial services provider’s stock worth $2,004,000 after purchasing an additional 315 shares in the last quarter. City Center Advisors LLC purchased a new stake in shares of Morgan Stanley in the 3rd quarter worth about $247,000. Venture Visionary Partners LLC grew its position in shares of Morgan Stanley by 6.4% in the 3rd quarter. Venture Visionary Partners LLC now owns 86,727 shares of the financial services provider’s stock worth $16,312,000 after buying an additional 5,254 shares during the period. Elevation Wealth Partners LLC increased its stake in shares of Morgan Stanley by 42.4% in the 3rd quarter. Elevation Wealth Partners LLC now owns 410 shares of the financial services provider’s stock worth $77,000 after acquiring an additional 122 shares in the last quarter. Finally, Cooper Financial Group increased its stake in shares of Morgan Stanley by 12.2% in the 3rd quarter. Cooper Financial Group now owns 7,913 shares of the financial services provider’s stock worth $1,488,000 after acquiring an additional 858 shares in the last quarter. 84.19% of the stock is owned by institutional investors. Morgan Stanley News Roundup Here are the key news stories impacting Morgan Stanley this week:

Positive Sentiment: Jim Cramer endorsed Morgan Stanley as a buy after its pullback, citing the company’s share-repurchase authorization and confidence in CEO Ted Pick’s strategy. Jim Cramer Backs Morgan Stanley After Its Pullback Positive Sentiment: Morgan Stanley is proposing to convert eight Eaton Vance municipal-bond mutual funds, with nearly $10 billion in assets, into ETFs. The move could improve product flexibility and strengthen the firm’s position in the growing ETF market, although shareholder approval is required. Morgan Stanley Plans Municipal Fund ETF Conversions Positive Sentiment: The firm was selected as a joint lead manager for the United Kingdom’s planned digitally native government bond, providing potential underwriting, distribution and investor-engagement revenue while expanding its digital-assets credentials. UK Names Banks for Digital Government Bond Neutral Sentiment: Analyst coverage remains broadly constructive, with Morgan Stanley receiving a “Moderate Buy” consensus and an average price target near $219.90, implying meaningful upside from the current trading level. However, the consensus includes a sizable number of hold ratings. Neutral Sentiment: Recent commentary highlights Morgan Stanley’s integrated investment-banking, wealth-management and asset-management model as a potential long-term earnings driver as deal activity recovers and client assets expand. Can Morgan Stanley’s Integrated Model Drive Long-Term Earnings Growth? Negative Sentiment: BMO Capital Markets lowered its Morgan Stanley price target from $250 to $215 while maintaining an “Outperform” rating. The reduced target signals more limited near-term upside and likely contributed to the stock’s weakness. BMO Cuts Morgan Stanley Price Target Negative Sentiment: A Zacks preview said Morgan Stanley does not currently have the combination of earnings and estimate-revision signals typically associated with a likely quarterly earnings beat, increasing investor caution before results. Morgan Stanley Earnings Expected to Grow Morgan Stanley Stock Down 0.7% Shares of NYSE MS opened at $189.67 on Thursday. The stock has a market capitalization of $299.17 billion, a P/E ratio of 15.33, a PEG ratio of 1.27 and a beta of 1.22. Morgan Stanley has a one year low of $151.84 and a one year high of $232.25. The firm’s 50 day simple moving average is $208.40 and its two-hundred day simple moving average is $202.66. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.79 and a quick ratio of 0.79.

Morgan Stanley (NYSE:MS – Get Free Report) last released its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, beating analysts’ consensus estimates of $2.89 by $0.57. The company had revenue of $21.35 billion during the quarter, compared to analyst estimates of $19.67 billion. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%.Morgan Stanley’s revenue for the quarter was up 27.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.13 EPS. As a group, analysts expect that Morgan Stanley will post 12.68 EPS for the current fiscal year.

Morgan Stanley declared that its Board of Directors has approved a stock buyback program on Wednesday, June 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to purchase up to 5.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Morgan Stanley Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were issued a dividend of $1.15 per share. This is a boost from Morgan Stanley’s previous quarterly dividend of $1.00. This represents a $4.60 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Friday, July 31st. Morgan Stanley’s dividend payout ratio is currently 37.19%.

About Morgan Stanley (Get Free Report)

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

Featured Stories Five stocks we like better than Morgan Stanley Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Receive News & Ratings for Morgan Stanley Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Morgan Stanley and related companies with MarketBeat.com's FREE daily email newsletter.