People walk past Morgan Stanley global headquarters in Manhattan on March 20, 2025, in New York City.
Morgan Stanley reported fourth-quarter results that exceeded Wall Street expectations on Thursday, driven by robust revenue from its wealth management division.
Here’s a comparison of what the company reported against the expectations of Wall Street analysts surveyed by LSEG:
- Earnings per share: $2.68 vs. $2.44 expected
- Revenue: $17.89 billion vs. $17.77 billion expected
The fourth-quarter net income rose to $4.40 billion, or $2.68 per share, compared to $3.71 billion, or $2.22 per share, in the same period last year. Additionally, revenue increased to $17.89 billion from $16.22 billion the previous year.
Following the financial report, Morgan Stanley's stock spiked about 6% on Thursday.
The wealth management unit achieved $8.4 billion in net revenue for the current quarter, increasing from $7.5 billion in the previous year. Over the entire year, the division generated a record $31.8 billion in net revenue.
Total client assets in the wealth and investment management sector rose to $9.3 trillion, bolstered by over $350 billion in net new assets.
“Morgan Stanley delivered outstanding performance in 2025,” said Ted Pick, the bank’s CEO and chairman, in a statement. “Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm.”
Investment banking was also notable for the firm, with net revenue for the segment soaring 47% to $2.41 billion from $1.64 billion the previous year, propelled by stronger advisory fees as completed M&A activity increased across all regions.
The firm repurchased $1.5 billion of its stock during the quarter and $4.6 billion over the year under its share repurchase program.
Morgan Stanley shares have appreciated by more than 43% over the past 12 months.
Other banks have similarly reported solid results. JPMorgan Chase exceeded expectations for its fourth-quarter results due to strong equities and fixed income trading revenue. Meanwhile, Wells Fargo posted weaker-than-expected revenue, while Bank of America and Citigroup surpassed consensus estimates.