Morgan Stanley Q3 Earnings Beat on Deal-Making Boom, Solid Trading

Core Insights - Morgan Stanley's Q3 2025 earnings per share reached $2.80, exceeding the Zacks Consensus Estimate of $2.08, and reflecting a 49% increase year over year [1][10] - The company's shares rose nearly 4.5% in pre-market trading due to strong deal-making activities during the quarter [1] Investment Banking Performance - Morgan Stanley's investment banking business benefited from increased deal-making and IPO activities, with advisory fees rising 25% year over year [2] - Total investment banking fees surged 44% to $2.11 billion, significantly above the projected $1.54 billion [3][10] Trading Performance - Equity trading revenues increased by 35% year over year to $4.12 billion, while fixed-income trading income rose 8% to $2.17 billion, both exceeding projections [4] Wealth and Investment Management - Wealth management pre-tax income rose 21% year over year to $2.5 billion, with net revenues increasing 13% to $8.23 billion, driven by higher asset management revenues [11] - Investment management pre-tax income climbed 40% to $364 million, with net revenues growing 13% to $1.65 billion [12] Financial Metrics - Quarterly net revenues reached $18.22 billion, an 18% increase from the prior year, surpassing the Zacks Consensus Estimate of $16.4 billion [7] - Net income applicable to common shareholders was $4.45 billion, a 47% increase from the previous year [6] Capital Position - As of September 30, 2025, Morgan Stanley's book value per share was $62.98, up from $58.25 a year ago, and the Tier 1 capital ratio improved to 17.6% [14] Share Buyback Activity - In the reported quarter, Morgan Stanley repurchased 7 billion shares for $1.1 billion [15]