Morgan Stanley announced its third-quarter 2026 results on 14 October, reporting net profit up 6.5% to $4.91 billion, or $3.03 per share. Revenue rose 12% to $20.34 billion.
Both figures were above LSEG estimates. Earnings per share of $3.03 compared with an LSEG estimate of $2.91, and revenue of $20.34 billion compared with an LSEG estimate of $19.95 billion.
Equities offset weaker fixed income
Equities trading revenue rose 41% to $5.8 billion, about $909 million above the StreetAccount estimate. The bank noted widespread strength across its equities products and regions, and cited Asia as a source of particular strength.
Fixed income trading revenue fell 7% to $2.01 billion, roughly $260 million below expectations, driven by declines in credit and commodities. Investment banking revenue rose 2% to $2.16 billion, about $110 million below expectations.
The bank cited an increase in advisory revenue on more completed mergers. Equity underwriting declined on lower initial public offerings, and fixed income underwriting also dropped.
Pick strikes a cautious note on outlook
Chief executive Ted Pick said that, starting in early September, concerns about overseas conflict, inflation and surging yields slowed activity across Wall Street. He said he is "cautiously optimistic" about markets in the fourth quarter.
Pick described the economy as subject to two key forces: the boost from the artificial intelligence build-out and the drag from geopolitical strife. Morgan Stanley shares declined about 3% on the day of the results. Wells Fargo analyst Mike Mayo said the results were "good, but not great", as some business metrics showed slower improvement in the quarter.
Morgan Stanley has offices in 42 countries. Its business lines include investment banking, securities, wealth management and investment management.
Related: Morgan Stanley profit rose as equity trading revenue climbed 41%