◆ Inside the Latest Quarter (Q2 2026)

Morgan Stanley (MS) — the variant view

Morgan Stanley's record quarter was a trading quarter, with the wealth business quietly passing its 30% margin goal alongside.

📈 MS valuation, revenue & earnings — P/E, P/S, revenue, EPS →

The second quarter of 2026 was the best in Morgan Stanley's history, and trading made it so. Net revenues were $21,348 million against $16,792 million a year earlier, and diluted earnings per share $3.46 against $2.131. ROTCE was 26.6%2.

Segment net revenues, Q2 2026 vs Q2 2025 ($M)7,643ISG Q2 202511,040ISG Q2 20267,764WM Q2 20258,856WM Q2 20261,552IM Q2 20251,646IM Q2 2026Morgan Stanley Q2 2026 earnings release
ISG up 44%, WM up 14%, IM up 6%.

Institutional Securities earned revenue of $11,040 million and pre-tax income of $4,262 million3. Equity revenue was a record $6,300 million, "with notable strength in Asia"4; investment banking was $2,437 million and fixed income $2,455 million5.

Wealth Management earned $8,856 million and a pre-tax margin of 30.5%6. Net new assets were a record $148 billion, "of which just over half represented inflows related to IPOs" in the workplace channel7. Investment Management earned $1,646 million, with long-term net flows of $7.5 billion89.

Asia revenue rose 71% to $3,930 million10. Headcount was 82,944 against 83,922 in March, after a workforce action that "impacted approximately 2% of our global workforce at that time"11.

Capital stayed strong. The Standardized CET1 ratio was 14.8%12. The firm bought back $1.5 billion of stock at an average $197.64 and raised the quarterly dividend to $1.151314.

The half-year shows the trend more clearly than the quarter. Net revenues were $41,928 million in the first half of 2026 against $34,531 million a year earlier, net income $11,148 million against $7,854 million, and diluted earnings per share $6.90 against $4.7315. ROTCE was 26.8% for the half against 20.6%16.

The tax rate rose. The effective tax rate was 23.1% in the second quarter against 19.6% in the first17, which held earnings per share flat at $3.46 against $3.43 in the first quarter despite higher revenue18. Standardized CET1 capital rose to $87,568 million19, and the firm bought 8 million shares at an average $197.6420.

The quarter's weakness was its source. The number to watch next is Wealth Management's pre-tax margin in a quarter without a trading boom: holding at 30% would show the franchise, not the market, produced the record.

References
  1. ReportedNet revenues were $21,348 million against $16,792 million a year earlier, and diluted earnings per share $3.46 against $2.13.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  2. ReportedROTCE was 26.6%.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  3. ReportedInstitutional Securities earned revenue of $11,040 million and pre-tax income of $4,262 million.
    Morgan Stanley second-quarter 2026 financial supplement, Form 8-K exhibit 99.2 - Wealth Management metrics, Investment Management assets under management and flows, regional revenues. — Q2 2026 · publ. 15 July 2026 · source ↗
  4. ReportedEquity revenue was a record $6,300 million, "with notable strength in Asia"; investment banking was $2,437 million and fixed income $2,455 million.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results for Institutional Securities, Wealth Management and Investment Management. — Q2 2026 · publ. 15 July 2026 · source ↗
  5. ReportedEquity revenue was a record $6,300 million, "with notable strength in Asia"; investment banking was $2,437 million and fixed income $2,455 million.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results for Institutional Securities, Wealth Management and Investment Management. — Q2 2026 · publ. 15 July 2026 · source ↗
  6. ReportedWealth Management earned $8,856 million and a pre-tax margin of 30.5%.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results for Institutional Securities, Wealth Management and Investment Management. — Q2 2026 · publ. 15 July 2026 · source ↗
  7. ReportedNet new assets were a record $148 billion, "of which just over half represented inflows related to IPOs" in the workplace channel.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  8. ReportedInvestment Management earned $1,646 million, with long-term net flows of $7.5 billion.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results for Institutional Securities, Wealth Management and Investment Management. — Q2 2026 · publ. 15 July 2026 · source ↗
  9. ReportedInvestment Management earned $1,646 million, with long-term net flows of $7.5 billion.
    Morgan Stanley second-quarter 2026 financial supplement, Form 8-K exhibit 99.2 - Wealth Management metrics, Investment Management assets under management and flows, regional revenues. — Q2 2026 · publ. 15 July 2026 · source ↗
  10. ReportedAsia revenue rose 71% to $3,930 million.
    Morgan Stanley second-quarter 2026 financial supplement, Form 8-K exhibit 99.2 - Wealth Management metrics, Investment Management assets under management and flows, regional revenues. — Q2 2026 · publ. 15 July 2026 · source ↗
  11. ReportedHeadcount was 82,944 against 83,922 in March, after a workforce action that "impacted approximately 2% of our global workforce at that time".
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - capital ratios, share repurchases, dividends, book value and headcount. — Q2 2026 · publ. 15 July 2026 · source ↗
  12. ReportedThe Standardized CET1 ratio was 14.8%.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - capital ratios, share repurchases, dividends, book value and headcount. — Q2 2026 · publ. 15 July 2026 · source ↗
  13. ReportedThe firm bought back $1.5 billion of stock at an average $197.64 and raised the quarterly dividend to $1.15.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - capital ratios, share repurchases, dividends, book value and headcount. — Q2 2026 · publ. 15 July 2026 · source ↗
  14. ReportedThe firm bought back $1.5 billion of stock at an average $197.64 and raised the quarterly dividend to $1.15.
    Morgan Stanley Form 8-K exhibit 99.1, dividend increase to $1.15, a $20 billion multi-year buyback and the stress capital buffer after the 2026 stress test. — June 2026 · publ. 24 June 2026 · source ↗
  15. ReportedNet revenues were $41,928 million in the first half of 2026 against $34,531 million a year earlier, net income $11,148 million against $7,854 million, and diluted earnings per share $6.90 against $4.73.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  16. ReportedROTCE was 26.8% for the half against 20.6%.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  17. ReportedThe effective tax rate was 23.1% in the second quarter against 19.6% in the first, which held earnings per share flat at $3.46 against $3.43 in the first quarter despite higher revenue.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  18. ReportedThe effective tax rate was 23.1% in the second quarter against 19.6% in the first, which held earnings per share flat at $3.46 against $3.43 in the first quarter despite higher revenue.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - firm results, returns and the chief executive's statement. — Q2 2026 · publ. 15 July 2026 · source ↗
  19. ReportedStandardized CET1 capital rose to $87,568 million, and the firm bought 8 million shares at an average $197.64.
    Morgan Stanley Form 10-Q for the quarter ended 30 June 2026 - capital requirements, legal proceedings including the cash-sweep litigation, and the 2026 bank-entity reorganisation. — Q2 2026 · publ. 4 August 2026 · source ↗
  20. ReportedStandardized CET1 capital rose to $87,568 million, and the firm bought 8 million shares at an average $197.64.
    Morgan Stanley second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - capital ratios, share repurchases, dividends, book value and headcount. — Q2 2026 · publ. 15 July 2026 · source ↗
Sources
Generated September 26, 2026