Morgan Stanley (NYSE: MS) reported net revenues of $21.3 billion for the second quarter ended June 30, 2026, a record for the firm, compared with $16.8 billion a year earlier. Net income applicable to the firm was $5.6 billion, or $3.46 per diluted share, up from $3.5 billion, or $2.13 per diluted share, in the same period of 2025.
The quarter, reported on July 15, reflected a recovery in investment banking and trading activity that has lifted results across large capital markets firms, where Morgan Stanley competes directly with peers such as Goldman Sachs. Return on tangible common equity reached 26.6%, up from 18.2% a year earlier, while the expense efficiency ratio improved to 65% from 71%.
#Morgan Stanley Posts Record Institutional Securities Revenue
Institutional Securities reported net revenues of $11 billion, up from $7.6 billion a year ago. Pre-tax income was $4.3 billion, compared with $2.1 billion in the second quarter of 2025.
Equity net revenues rose 69% to a record $6.3 billion, which the firm said reflected strong performance across regions, with notable strength in Asia.
Investment banking net revenues increased 58% to $2.4 billion. The firm attributed the gain to higher completed M&A transactions, increased equity underwriting from IPOs and follow-on offerings, and higher fixed income underwriting.
Fixed Income net revenues increased 13% to $2.5 billion, which the firm said reflected higher results in credit and the cumulative impact of lending growth in its securitized products business.
"Active markets and consistent execution across all three regions drove exceptional results for our Integrated Firm, delivering record revenues of over $21 billion and record EPS of $3.46," Ted Pick, Chairman and Chief Executive Officer, said in the earnings release.
#Wealth Management Adds Record Net New Assets
Wealth Management reported net revenues of $8.9 billion, up 14% from $7.8 billion a year ago, with a pre-tax margin of 30.5%.
The segment added net new assets of $148 billion, compared with $59.2 billion a year earlier. Morgan Stanley said just over half of the inflows related to IPOs of certain clients in its Workplace channel.
Total client assets across Wealth Management and Investment Management reached $10 trillion, a level the firm identified as a milestone.
Investment Management reported net revenues of $1.6 billion, up 6%, with assets under management of $2 trillion. Long-term net flows were $7.5 billion, down from $12.2 billion a year ago.
#Morgan Stanley Raises Dividend And Reauthorizes Buyback
The board declared a quarterly dividend of $1.15 per share, an increase of 15 cents, payable on August 14, 2026 to shareholders of record as of July 31, 2026.
The board also reauthorized a share repurchase program of up to $20 billion, without a set expiration date, beginning in the third quarter of 2026. The firm repurchased $1.5 billion of common stock during the second quarter.
Morgan Stanley reported a Standardized Common Equity Tier 1 capital ratio of 14.8% and a book value of $67.80 per share. The effective tax rate for the quarter was 23.1%.
Pick said the firm would continue to accrete capital, giving it flexibility to invest in its core businesses while generating returns for shareholders. Market conditions, the pace of investment banking activity, and regulatory requirements remain key risks to that outlook, and the firm cautioned that its forward-looking statements are subject to risks and uncertainties that could cause actual results to differ.