Morgan Stanley

MS Q1 2025 Earnings

Reported Apr 11, 2025 at 7:45 AM ET · SEC Source

Q1 25 EPS

$2.60

BEAT +18.59%

Est. $2.19

Q1 25 Revenue

$17.74B

BEAT +7.17%

Est. $16.55B

vs S&P Since Q1 25

+49.6%

BEATING MARKET

MS +84.6% vs S&P +35.0%

Market Reaction

Did MS Beat Earnings? Q1 2025 Results

Morgan Stanley kicked off 2025 with a record first quarter, posting earnings per share of $2.60 against a consensus estimate of $2.19, a beat of 18.59%, while revenue of $17.74 billion topped expectations by 7.17%. The headline numbers were driven in… Read more Morgan Stanley kicked off 2025 with a record first quarter, posting earnings per share of $2.60 against a consensus estimate of $2.19, a beat of 18.59%, while revenue of $17.74 billion topped expectations by 7.17%. The headline numbers were driven in large part by a historic performance in Institutional Securities, where equity trading revenues surged 45% year-over-year to a record $4.13 billion, fueled by heightened market volatility and particular strength in prime brokerage, derivatives, and Asian markets. That momentum helped lift firm-wide net revenues 17% from a year ago, even as the reported year-over-year comparison reflects a -30.0% change against the structured data baseline. Return on tangible common equity climbed to 23.0% from 19.7%, underscoring the durability of Morgan Stanley's integrated model. Wealth Management contributed $7.33 billion in revenues, up 6%, while net new assets reached $93.80 billion, pushing total client assets across Wealth and Investment Management to $7.70 trillion. The results arrived as peers including Citigroup also reported trading-driven earnings strength in the quarter.

Key Takeaways

  • Record Equity trading revenues driven by strong client activity amid volatile trading environment, particularly in Asia, with outperformance in prime brokerage and derivatives
  • Higher completed M&A transactions driving advisory revenue growth
  • Strong fixed income underwriting on higher non-investment grade loan issuances
  • Wealth Management asset management revenues up 15% on higher asset levels and cumulative positive fee-based flows
  • Investment Management benefiting from higher average AUM and increased accrued carried interest in infrastructure funds
  • Strong FX trading in volatile environment and securitized products on higher lending revenues
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MS YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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MS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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MS Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The Integrated Firm delivered a very strong quarter with record net revenues of $17.7 billion and EPS of $2.60, and an ROTCE of 23.0%. Institutional Securities strong performance was led by our Markets business with Equity reporting a record $4.1 billion in revenues. Total client assets of $7.7 trillion across Wealth and Investment Management were supported by $94 billion in net new assets. These results demonstrate the consistent execution of our clear strategy to drive durable growth across our global footprint.”

— Ted Pick, Q1 2025 Earnings Press Release