Morgan Stanley (MS) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 performance with $70.6B in revenues, $10.21 EPS, $16.9B net income, and 21.6% ROTCE, driven by strong execution, expanding markets, and high client engagement.

• Wealth and Investment Management client assets reached $9.3T, with robust asset inflows and high pre-tax margins.

• Institutional Securities and Investment Management delivered record revenues and durable share gains.

• Consistent execution led to higher returns and earnings growth, with EPS and ROTCE both showing significant increases from 2016 to 2025.

• The firm remains focused on compounding earnings, prudent capital allocation, and leveraging technology, especially AI, for efficiency and growth.

Financial highlights

• Full-year revenues hit $70.6B, up 14% year-over-year; Q4 revenues were $17.9B.

• Net income for the year was $16.9B, up 26% year-over-year; Q4 net income was $4.4B.

• Record EPS of $10.21 for the year; Q4 EPS was $2.68.

• Wealth Management revenues reached $31.8B with 29% margins; Q4 margin was 31.4%.

• Investment Management revenues were $6.5B, with AUM at $1.9T and $34B in long-term net inflows.

Outlook and guidance

• 2026 starts with fiscal and monetary policy tailwinds, but management remains cautious amid macro and geopolitical uncertainties.

• Firm targets over $10T in client assets, 30% pre-tax margin in Wealth Management, 70% efficiency ratio, and 20% ROTCE.

• NII expected to remain flat in Q1 2026, with a trend higher for the year assuming current conditions.

• Investment Banking pipelines are healthy, with accelerating strategic activity and IPO market reopening.