Morgan Stanley (MS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 revenues of $21.3 billion and EPS of $3.46, with first-half revenues at $42 billion and EPS at $6.90.

• Net income for Q2 was $5.6 billion, up 27% year-over-year, with all business segments contributing to growth.

• Return on tangible common equity (ROTCE) reached 26.6% for the quarter, and ROE was 20.7%.

• Total client assets across Wealth and Investment Management hit $10 trillion, marking a strategic milestone.

• Strong client engagement and operating leverage drove performance, supported by disciplined investment and execution.

Financial highlights

• Institutional Securities delivered record revenues of $11 billion and pre-tax profit of $4.3 billion, with net revenues up 44% year-over-year.

• Investment Banking revenues rose 58% year-over-year to $2.4 billion, with advisory revenues at $798 million.

• Equities revenues reached a record $6.3 billion, with strong performance across all regions, especially Asia, and up 69% year-over-year.

• Wealth Management generated record revenues of $8.9 billion and pre-tax profit of $2.7 billion, with a pre-tax margin of 30.5%.

• Investment Management AUM reached $2 trillion, with $7.5 billion in long-term net inflows and net revenues up 6% to $1.6 billion.

Outlook and guidance

• Investment banking outlook remains constructive with healthy pipelines and broad-based client dialogue.

• Expect modest sequential increase in net interest income for Q3.

• Ongoing investments in technology, distribution, and product innovation to support future growth.

• Annual tax rate expected between 22% and 23%, with some quarterly volatility.

• The firm continues to focus on operational efficiency and client connectivity globally.