Morgan Stanley Surges Past Rivals With Record Profits and Revenues in 2025 Q3

Morgan Stanley has posted stellar third quarter results, decisively outpacing its rivals with a sharp rise in profits and revenues during a surge in US dealmaking activity. The Wall Street giant reported net income of $4.6 billion, a 45 per cent leap over the same period last year, and achieved total quarterly revenues of $18.2 billion, comfortably beating analyst forecasts of $16.7 billion.

Shares in Morgan Stanley leapt five per cent to $163.13 in New York after the results were published, underlining the optimism on trading floors. Investment banking revenue rose 44 per cent to $2.11 billion, as the bank benefited from renewed M&A appetite driven by favourable economic conditions such as a resilient US economy, expectations of interest rate cuts and lighter regulation under President Trump.

Record performances were seen across multiple business lines. The firm saw advisory fees jump 25 per cent to $684 million, underpinned by robust merger activity, while equity underwriting revenue surged 35 per cent to $652 million, buoyed by high-profile initial public offerings including Figma and Klarna. Fixed income underwriting also performed strongly, climbing 39 per cent to $772 million.

Morgan Stanley’s trading desks provided a further boost as equities revenue climbed 35 per cent to $4.12 billion, propelled by record prime brokerage results and a strong equities market. In comparison, Goldman Sachs reported equities revenue of $3.74 billion for the quarter.

The wealth management division generated a record $8.2 billion in quarterly revenues. Rising market valuations and net new assets of $81 billion in the quarter helped to propel total client assets in wealth and investment management to $8.9 trillion. Chief executive Ted Pick hailed the results, highlighting the diversified strength of the business and confidence in continuing positive momentum into 2026.

Bank of America also reported upbeat figures, with net income up 23 per cent to $8.5 billion and revenue rising 11 per cent year-on-year to $28.1 billion. Optimistic signals from both business clients and consumers are contributing to the positive mood across the sector as deal activity revives and the US Federal Reserve commences its rate-cutting cycle.