Morgan Stanley Q2 2026 Revenue $21.3B, Profit Up 58%

Morgan Stanley reported record-breaking financial results for the second quarter of 2026, driven by a surge in equities trading and investment banking activity. The firm announced on July 15 that its quarterly revenue reached $21.3 billion, a 27% increase from the same period last year, while net income rose 58% to $5.58 billion. Diluted earnings per share were $3.46, significantly exceeding analyst expectations.

The standout performance came from the institutional securities division, which posted record revenue of $11 billion. Equities trading revenue soared 69% year-over-year to $6.3 billion, far surpassing forecasts. Executives attributed the strength to active client engagement across all regions, with particular momentum in Asia. Investment banking revenue also saw a substantial increase, rising 58% to $2.4 billion, supported by a robust market for initial public offerings and mergers and acquisitions. The firm highlighted its role as a lead underwriter for the SpaceX IPO during the quarter.

Wealth management achieved its own milestones, generating record revenue of $8.9 billion and attracting a record $148 billion in net new client assets. More than half of those inflows...