Morgan Stanley Reports Profit Increase Driven by Equity Trading

By EC Assets · Published 14 October 2026

Morgan Stanley's earnings have seen a rise, driven by strong performance in equity trading. The investment bank also reported adjusted third-quarter earnings that surpassed analysts' estimates, benefiting from its investment bank and wealth management units. Morgan Stanley is among several financial stocks reporting earnings this week. Analysts have significantly increased their estimates for these companies in recent months. The firm's equities trading revenue exceeded expectations by $909 million. CEO Ted Pick reported $17.7 billion in revenue for Q1 2025, with earnings per share (EPS) at $2.60 and a return on tangible common equity (ROTCE) of 23%. Morgan Stanley achieved a record quarter in equities during Q1 2025, generating over $4 billion in revenue. This was supported by strong client engagement. Morgan Stanley's long-term upside is fueled by its franchise strength and ongoing regulatory shifts. The firm projects continued strength in equities and growth in wealth management, alongside opportunities in mergers and acquisitions. These factors contribute to the positive outlook for the company. Other financial institutions are also reporting earnings this week. Bank of America, for example, posted a third-quarter profit drop. This was due to a $1.2 billion Treasury fine. Investor disappointment over the government fine added to Bank of America's downbeat earnings report. The $1.2 billion fine was related to anti-money laundering shortcomings. This article is intended for informational purposes only. It does not constitute investment advice.