Morgan Stanley
MSFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$20.6B
Q1 2026 · +16% YoY
TTM ROIC
21.6%
FY2025 · ROTCE: Net Income / Avg Tangible Common Equity (excludes goodwill/intangibles) · WACC ~10.8% · Moat spread +10.8pp
Financial Snapshot
ticker: MS step: 04 generated: 2026-05-12 source: quick-research
Morgan Stanley (MS) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Net Revenues | $54.1B | $61.8B | $70.6B | +14% |
| Wealth Management Revenue | $26.3B | $28.5B | $31.7B | +12% (record) |
| Institutional Securities Revenue | $24.0B | $28.0B | $33.1B | +18% |
| Investment Management Revenue | $5.4B | $5.7B | $6.1B | +7% |
| Net Income | $9.1B | $13.4B | $16.8B | +25% |
| EPS (diluted) | $5.18 | $7.95 | $10.21 | +29% |
| ROTCE | 13% | 18.8% | 21.6% | +280bps |
Q1 2026 Highlights (most recent reported — record quarter)
| Metric | Q1 2026 | YoY |
|---|---|---|
| Net Revenues | $20.6B (record) | +15%+ |
| EPS | $3.43 | record |
| Wealth Management | $8.5B (record) | strong |
| Wealth Pre-Tax Margin | 30.4% | |
| Asia revenue contribution | 45% of sequential rev gain | (vs 16% baseline) |
Wealth Management Detail (FY2025)
| Metric | Value |
|---|---|
| Net Revenues | $31.7B (record, +12%) |
| WM Fees | $6.55B (+12%) |
| Advisor-led assets (workplace + E*TRADE) | $99B (vs $60B historic avg) |
| Number of FAs | ~16,000 |
| Pre-Tax Margin | 30%+ target |
Institutional Securities Detail (FY2025)
| Metric | Value |
|---|---|
| Net Revenues | $33.1B |
| Equity (record) | strong |
| Investment Banking (strong on client activity) | recovering |
| Fixed Income (solid) | moderate |
Investment Management
| Metric | Value (Q1 2026) |
|---|---|
| AUM/AUS | $1.9T |
| Investment professionals | 1,300+ |
| Brands | Parametric, Calvert, Eaton Vance, Atlas, Solium |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Total Assets | ~$1.3T |
| Total Deposits | ~$390B |
| Total Loans | ~$300B |
| CET1 Capital Ratio | ~15.3% (well above req) |
| Tangible Book Value/Share | ~$50 |
Key Ratios (approximate, May 2026)
- P/E (forward): ~13x | P/TBV: ~2.6x | Dividend Yield: ~2.9%
- ROTCE: 21.6% — exceptional (vs ~13% three years ago)
- Pre-tax margin Wealth: 30%+
Growth Profile
2025 was the strongest year in MS history — net revenues $70.6B (+14%); EPS $10.21 (+29%). Q1 2026 followed with a record $20.6B revenue quarter ($3.43 EPS). Asia contributed 45% of sequential revenue improvement — well above 16% revenue weighting. Wealth Management $31.7B record; pre-tax margin 30.4%. The integrated model is firing on all cylinders.
Forward Estimates
- 2026E Net Revenues: ~$78-80B (+10-13%)
- 2026E EPS: ~$11.50-12.00 (+13-18%)
- 2027E EPS: ~$13-14 (assumes IB cycle continues)
- Wealth pre-tax margin target: 30%+ sustained
Capital Return
- Quarterly dividend $0.96/share = $3.85 annual (~$6B paid)
- Buybacks: ~$5-8B annual run rate
- Total capital return: ~$11-14B annually
- Combined yield ~5-7%
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $MS.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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