Morgan Stanley (MS) Q1 2026 earnings summary

Executive summary

• Achieved record net revenues of $20.6 billion, up 16% year-over-year, and net income of $5.6 billion, up 29% year-over-year.

• Diluted EPS rose 32% to $3.43; ROTCE reached 27.1% and ROE was 21.0%.

• Demonstrated strong operating leverage and efficiency, with a 65% efficiency ratio despite $178 million in severance charges.

• Wealth Management and Institutional Securities both delivered record revenues, supported by robust client engagement and diversified business mix.

• Closed the acquisition of EquityZen and launched a digital asset pilot with Zerohash, expanding capabilities in private markets and digital assets.

Financial highlights

• Revenues reached $20.6 billion, up from $17.7 billion in Q1 2025, with EPS at $3.43.

• Net income applicable to shareholders was $5.4 billion, up from $4.2 billion.

• Wealth Management revenues hit $8.5 billion, with net new assets of $118 billion and fee-based flows of $54 billion.

• Institutional Securities posted record revenues of $10.7 billion, with Equities at $5.1 billion and Fixed Income at $3.4 billion.

• Asset Management/Investment Management revenues were $1.5 billion; AUM rose to $1.87 trillion.

Outlook and guidance

• Expect net interest income to build over the year, with a modest increase in Q2.

• Investment Banking pipelines remain steady, supported by ongoing strategic activity and capital formation needs.

• Reaffirmed Wealth Management pre-tax margin target at 30%, with potential for organic margin improvement.

• Management highlighted continued momentum in Wealth Management and robust client engagement in Institutional Securities.

• ROTCE goal remains at 20% in a normal market environment.