Morgan Stanley reported record quarterly revenue and profits on Wednesday, capping a remarkable week for the country's largest banks. Net income rose 58% to $5.58 billion, or $3.46 per share. Net revenue climbed 27% from the same period last year to $21.35 billion. Both figures set all-time highs for the firm, according to Yahoo Finance.
Quarterly stock trading fees jumped 69% from a year ago to $6.3 billion, also the highest in Morgan Stanley's history. Its equity underwriting business generated $851 million, a 70% increase year over year and the highest total since 2021. The bank exceeded analyst estimates on both revenue and net income.
Morgan Stanley CEO Ted Pick called the results "exceptional" in a press release statement. "We continue to accrete capital, giving us incremental flexibility to invest in our core businesses while generating strong returns for shareholders," Pick added. During a Wednesday call with analysts, he said the AI boom and "the return of geopolitics" are defining 2026 activity.
Those two forces have driven a surge in trading activity by both institutions and retail investors, while also generating AI-related IPOs, debt raising, and large strategic mergers that throw off substantial underwriting and advising fees. One notable deal during the quarter was Morgan Stanley's role in taking rocket maker SpaceX public. The bank and rival Goldman Sachs each earned a $100 million cut of the underwriting fee from that transaction.
The IPO activity also helped Morgan Stanley's wealth management platform bring in a record $148 billion in net new assets during the quarter, compared to $59.2 billion in the same period last year. More than half of those inflows came from employees at companies that completed IPOs during the quarter, according to Morgan Stanley CFO Sharon Yeshaya.
Morgan Stanley was not alone in its strong performance. JPMorgan Chase, Wells Fargo, Goldman Sachs, Bank of America, and Citigroup all reported earnings that surpassed expectations on Tuesday. Together, the six big banks earned nearly $55 billion in the second quarter, a 37% jump from a year earlier.
Morgan Stanley's stock price was down slightly in early Wednesday trading after closing at a record high on Tuesday. Since the beginning of January, the stock has climbed more than 24%, outperforming its rivals.
BlackRock also reported strong results. The fund manager's profits jumped as assets under management hit a record $15 trillion, according to MarketWatch. The company said it will boost its quarterly share buybacks to $550 million. BlackRock shares rose on the news.
