Compared to Estimates, Morgan Stanley (MS) Q4 Earnings: A Look at Key Metrics

Core Insights - Morgan Stanley reported a revenue of $17.89 billion for the quarter ended December 2025, reflecting a year-over-year increase of 10.3% and a surprise of +3.3% over the Zacks Consensus Estimate of $17.32 billion [1] - The earnings per share (EPS) for the quarter was $2.68, an increase from $2.22 in the same quarter last year, although it did not meet the consensus EPS estimate of $2.41 [1] Financial Performance Metrics - Book value per common share was reported at $64.37, exceeding the average estimate of $63.87 by four analysts [4] - Return on average common equity was 16.9%, surpassing the estimated 14.6% by four analysts [4] - Total client assets in Wealth Management reached $7,381 billion, significantly higher than the average estimate of $6,832.69 billion by two analysts [4] - Total assets under management were $1,895 billion, compared to the estimated $1,823.49 billion by two analysts [4] - Net interest revenue was $2.86 billion, exceeding the average estimate of $2.53 billion and representing a year-over-year increase of +11.9% [4] - Total non-interest revenues amounted to $15.04 billion, surpassing the average estimate of $14.49 billion and reflecting a year-over-year increase of +10% [4] Wealth Management Performance - Revenues from Wealth Management - Transactional were $1.14 billion, slightly below the average estimate of $1.19 billion, but showed a year-over-year increase of +17.5% [4] - Net interest income in Wealth Management was $2.11 billion, exceeding the estimated $1.99 billion and representing a +11.8% change year-over-year [4] - Other revenues in Wealth Management were reported at $147 million, slightly above the average estimate of $141.89 million, but showed a year-over-year decline of -27.6% [4] - Asset management and related fees in Investment Management were $1.65 billion, exceeding the average estimate of $1.56 billion and reflecting a year-over-year increase of +6.1% [4] - Performance-based income and other revenues in Investment Management were $71 million, below the estimated $115.88 million, representing a year-over-year decline of -19.3% [4] - Asset management revenues in Wealth Management were reported at $5.03 billion, exceeding the average estimate of $4.81 billion and showing a year-over-year increase of +13.9% [4] Stock Performance - Shares of Morgan Stanley have returned +3.4% over the past month, outperforming the Zacks S&P 500 composite's +1.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]