MORGAN STANLEY Earnings Summary — Q1 2026

• Revenue surged 16% year-over-year to $20.58 billion, the highest level in the reported multi-year period.
• Net Income reached $5.64 billion, representing a significant 27% increase compared to Q4 2025.
• Transaction-based revenues stabilized at $3.98 billion after recent volatility, supporting core brokerage operations.
• Net Interest Income showed steady quarterly growth (8.5% QoQ) despite broader macroeconomic rate shifts.
• The firm continues to see benefits from its structural transformation into a fee-based wealth and asset management powerhouse.
• Operating Income hit a multi-year quarterly peak of $7.01 billion, reflecting improved expense management.

Management remains focused on pivoting the business model towards recurring wealth management fees and leveraging the scale of E*TRADE and Eaton Vance acquisitions to maintain long-term ROE targets.

Improving

Strong year-over-year revenue and net income growth suggest the firm is successfully navigating the transition to a more stable, fee-based business model with record quarterly performance.

The outlook is positive as the firm capitalizes on diversified revenue streams, though it remains sensitive to global interest rate cycles and regulatory compliance costs.