New York: Morgan Stanley exceeded Wall Street expectations in the third quarter of 2025, reporting a net profit of $4.6 billion, or $2.80 per share, significantly higher than the projected $2.10 per share. Total revenue surged to a record $18.2 billion, fueled by a remarkable revival in investment banking and equities trading.
The bank’s investment banking division saw revenue jump 44% to $2.11 billion, driven by major mergers and acquisitions (M&A) and initial public offerings (IPOs). High-profile deals included advising Union Pacific in its $85 billion acquisition of Norfolk Southern, the largest global transaction this year. Equity underwriting also soared 80%, with Morgan Stanley acting as joint bookrunner for several large IPOs, including design software company Figma and Swedish fintech firm Klarna. Fixed income underwriting contributed an additional $772 million, up 39% from the previous year.
Wealth management continued to be a pillar of growth, achieving $8.9 trillion in assets under management and a pre-tax margin of 30.3%, bringing the firm closer to its $10 trillion long-term target. CEO Ted Pick highlighted the bank’s leading position in equities trading, while CFO Sharon Yeshaya noted that the investment banking pipeline is at an “all-time high,” with expectations to potentially surpass 2021 deal volumes next year.
Morgan Stanley’s strong performance reflects a broader economic environment of resilient U.S. growth, optimism around interest-rate cuts, and lighter regulatory pressures. Following the earnings release, shares rose 6.7% to a record high, marking a 32% gain year-to-date, as investors welcomed the bank’s robust profitability and strategic positioning.
This quarter underscores Morgan Stanley’s recovery and leadership in global finance, as it capitalizes on booming dealmaking and equity markets while steadily advancing toward its wealth management milestones.