Morgan Stanley Q2 beat: EPS at $2.13 vs $1.96, revenue $16.79B vs $16.07B, driven by strong trading and wealth management growth.
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📊 Morgan Stanley Crushes Q2 Expectations on Trading & Wealth
New York, July 16, 2025 – Morgan Stanley delivered a strong Q2 performance, topping Wall Street estimates thanks to elevated trading activity and wealth management gains.
🔹 Q2 Highlights (vs. LSEG estimates)
- EPS: $2.13 vs $1.96 expected → +9% beat
- Revenue: $16.79B vs $16.07B expected → +4.5% beat
- Net Income: $3.5B, up 13% YoY from $3.1B
📈 What Fueled the Outperformance
1. Institutional Securities: Trading Powerhouse
- Institutional revenues hit $7.64B, up from $6.98B YoY
- Equities trading surged 23%, fixed-income up 9%, fueled by tariff-led volatility
2. Wealth Management Riding High
- Wealth arm posted $7.76B in revenue, rising from $6.79B last year
- The uptick reflects strong client inflows and assets under management growth
💬 CEO Perspective
“Morgan Stanley delivered another strong quarter,” said CEO Ted Pick.
“With six straight profitable quarters and consistently strong performance across diverse markets, equity trading and wealth were standout contributors.”
📉 Investment Banking Lagging
- Investment banking revenue fell ~5%, weighed by slower M&A activity
- However, CEO Pick noted a pipeline rebound entering Q3—bolstered by IPOs like Chime and renewed deal interest
📊 Comparing with Peers
- Goldman Sachs, JPMorgan, and Citi all posted Q2 beats fueled by trading momentum
- Morgan Stanley’s unique blend of trading and wealth makes it well-positioned in the current cycle
🔍 Outlook & What to Watch
| Focus Area | Insight |
|---|---|
| Trading Volatility | Continued macro turmoil (e.g., tariffs) could sustain elevated trading |
| Wealth Inflows | Asset influx and fee income remain key structural tailwinds |
| Investment Banking | Q3 could see revival in M&A, IPOs, and underwriting |
| Stock Reaction | Shares are +12-13% YTD; Q2 strength may undergird future gains |
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