Morgan Stanley

MS
Financial 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 Equity (excludes goodwill/intangibles from E*TRADE and Eaton Vance acquisitions) · WACC ~10.8% · Moat spread +10.9pp
Margin Profile
Operating 31%
FY2025

Business Overview

ticker: MS step: 01 generated: 2026-05-12 source: quick-research

Morgan Stanley (MS) — Business Overview

Business Description

Morgan Stanley is a global financial services firm with three reportable segments: Institutional Securities (investment banking + trading), Wealth Management (#1 in advisor-led wealth + E*TRADE retail), and Investment Management ($1.9T+ AUS). Under CEO Ted Pick (since January 2024), MS has successfully completed the pivot from a high-octane investment bank into a wealth management-centric integrated firm. Client assets near $10T threshold across Wealth + Investment Management.

Revenue Model

  • Wealth Management (~45% of revenue): Advisor-led wealth, E*TRADE retail brokerage, workplace plans, family office services — annuity-like fees
  • Institutional Securities (~47%): Investment banking (M&A, ECM, DCM), FICC + equities trading, prime brokerage
  • Investment Management (~8%): Asset management for institutional + retail; brands include Parametric, Calvert, Eaton Vance, Atlas
  • Fee-based revenue ~50%+ of total — provides earnings stability vs. trading-heavy peers

Products & Services

Wealth Management
  • Morgan Stanley Wealth Management: ~16,000 financial advisors serving HNW + UHNW clients
  • E*TRADE (acquired 2020 for $13B): Self-directed retail brokerage; ~$1T AUM
  • Workplace solutions: Employer-sponsored 401(k), equity comp administration, Solium platform
  • Family office services: Multi-generational planning
  • Asia private wealth: UHNW for Asia ex-Japan (rapidly growing)
Institutional Securities
  • Investment Banking: M&A advisory, ECM (IPOs, follow-ons), DCM, restructuring
  • Equities trading: Record FY25 equities revenue; #1 globally in prime brokerage
  • FICC: Fixed income, currencies, commodities trading
  • Research: #1 institutional research franchise globally
  • Wealth-Institutional linkage: Cross-sell to UHNW via institutional capabilities
Investment Management
  • Parametric: Custom direct indexing + tax loss harvesting
  • Calvert: ESG/sustainability investing
  • Eaton Vance: Multi-strategy active management
  • Atlas: Private credit + alternatives
  • Stablecoin Reserves Portfolio (launched April 2026)

Customer Base & Go-to-Market

  • HNW/UHNW Individuals: Core wealth management target; Asia + Middle East growth
  • Self-directed retail: E*TRADE ~6M+ accounts
  • Corporations: IB advisory + financing relationships
  • Institutional investors: Hedge funds, pensions, sovereign wealth, asset managers
  • Workplace clients: Companies offering equity comp through Solium/Shareworks
  • Geographic mix: ~65% Americas, ~20% EMEA, ~15% Asia (Asia drove 45% of sequential rev improvement Q1 26 — significantly outpacing weighting)

Competitive Position

Morgan Stanley is the global #1 in wealth management by advisor-led client assets and a top-3 investment bank. Moats: (1) ~16,000-FA wealth franchise — largest in industry, (2) E*TRADE + workplace combination captures wealth at all life stages, (3) #1 prime brokerage + equities trading creates franchise stickiness, (4) Asia UHNW platform is rapidly growing. Competitors: Bank of America (Merrill, similar size), Goldman Sachs (smaller wealth but stronger IB), JPMorgan (universal bank), UBS, Wells Fargo Advisors.

Key Facts

  • Founded: 1935 (as J.P. Morgan & Co. separation)
  • Headquarters: New York, NY
  • Employees: ~80,000
  • Exchange: NYSE
  • Sector / Industry: Financials / Investment Banking & Capital Markets
  • Market Cap: ~$210B (May 2026)
  • CEO: Ted Pick (since January 2024, succeeded James Gorman)
  • President: Andy Saperstein
  • Dividend: $3.85 annual ($0.96 quarterly)
  • Client assets: ~$10T (Wealth $7T+ + Investment Mgmt $1.9T + IS)

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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