Morgan Stanley (MS) Q4 2025 earnings summary

Executive summary

• Achieved record full-year revenues of $70.6 billion, up 14% year-over-year, with EPS at $10.21, up 28%, and net income of $16.9 billion, up 26%, driven by strong execution across all business segments.

• Fourth quarter net revenues were $17.9 billion, up 10% year-over-year; Q4 net income was $4.4 billion, up 18%.

• The firm achieved a 21.6% ROTCE for the year and 21.8% for Q4, and maintained high capital levels with a CET1 ratio of 15% and over 300 basis points of excess capital.

• Strategic investments in technology, talent, and acquisitions fueled growth, while the integrated business model enabled durable performance through macro and geopolitical uncertainties.

• Total client assets in Wealth and Investment Management grew to $9.3 trillion, with over $350 billion in net new assets.

Financial highlights

• Full-year revenues hit a record $70.6 billion (vs. $61.8 billion prior year); Q4 revenues were $17.9 billion (vs. $16.2 billion prior year).

• Full-year net income was $16.9 billion (vs. $13.4 billion prior year); Q4 net income was $4.4 billion (vs. $3.7 billion prior year).

• Record EPS of $10.21 for the year (vs. $7.95 prior year); Q4 EPS was $2.68 (vs. $2.22 prior year).

• Expense efficiency ratio improved to 68% for the year, down from 71%.

• Book value per share was $64.37, and tangible book value per share was $50.00.

Outlook and guidance

• The firm expects to execute at or above current firm-wide goals in favorable environments and achieve higher lows in challenging periods.

• Investment Banking pipelines remain healthy and diversified, with accelerating strategic activity and a positive outlook for IPOs and capital raising in 2026.

• NII is expected to remain flat in Q1 2026 and trend higher through the year, assuming current market conditions.

• Management highlights multi-year investments driving growth and momentum across the integrated firm.

• Focus remains on long-term value creation for shareholders through strategy, culture, financial strength, and growth.