Morgan Stanley(US:MS) ZACKS·2025-11-14 17:31Core Viewpoint - Morgan Stanley's Q3 2025 earnings report showed strong performance, with earnings per share significantly exceeding estimates and a notable year-over-year increase in net income and revenues [2][6][7]. Financial Performance - Q3 2025 earnings were $2.80 per share, surpassing the Zacks Consensus Estimate of $2.08, and increased by 49% from the prior year [2]. - Net income applicable to common shareholders reached $4.45 billion, a 47% increase from the previous year, exceeding the estimate of $3.12 billion [6]. - Quarterly net revenues were $18.22 billion, an 18% increase year-over-year, and also beat the Zacks Consensus Estimate of $16.4 billion [7]. Revenue Breakdown - Institutional Securities segment saw pre-tax income rise to $3.18 billion, a 67% increase year-over-year, with net revenues of $8.52 billion, up 25% [9]. - Wealth Management segment reported pre-tax income of $2.5 billion, a 21% increase, with net revenues of $8.23 billion, up 13% [10]. - Investment Management segment's pre-tax income climbed to $364 million, a 40% increase, with net revenues of $1.65 billion, growing 13% [11]. Trading and Investment Banking - Investment banking fees increased by 44% to $2.11 billion, driven by a surge in advisory fees and capital-raising activities [4]. - Equity trading revenues rose 35% to $4.12 billion, while fixed-income trading income increased by 8% to $2.17 billion [5]. Capital Position - As of September 30, 2025, book value per share was $62.98, up from $58.25 a year ago, and the Tier 1 capital ratio improved to 17.6% from 16.9% [12]. Share Buyback - In the reported quarter, Morgan Stanley repurchased 7 billion shares for $1.1 billion [13]. Future Outlook - The company anticipates a modest sequential gain in net interest income for Q4 2025 and expects an effective tax rate of 24% for the same period [14]. - Estimates for the stock have been trending upward, with a consensus shift of 8.99% recently, indicating a positive outlook [15][17].