Morgan Stanley
Investment banking and wealth managementFounded 1935- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
Morgan Stanley
Financial Performance
Last reviewed: June 2026 · By Swet Parvadiya
Revenue
$70.6B
Market Cap
$195.0B
Net Income
$16.9B
Employees
80,000
Revenue of $70.6 billion in FY2025 — up from $54.1 billion in FY2023 — represents the fastest two-year growth Morgan Stanley has posted since the post-crisis recovery. Net income reached $16.9 billion. More striking than the absolute figures is the composition: all three major segments contributed meaningfully in the same year, which happens less often than the smooth aggregate number suggests. The Wealth Management segment is structurally different from the other two. Its fee revenue scales with asset levels, not market volatility, which means a rising equity market lifts the segment's revenue base without requiring incremental deal activity. The $9.3 trillion in client assets, at even a modest average fee rate, generates a predictable earnings floor that the 2022 markets tested: that year, investment banking revenue dropped roughly 40% industry-wide, yet Morgan Stanley remained profitable because wealth fees held. The 2021 Archegos Capital Management loss — approximately $911 million in prime brokerage exposure written off when Archegos's leveraged equity positions collapsed — illustrated what the institutional business can cost in tail scenarios. The 2024 block-trading settlement added regulatory costs. Neither event permanently impaired the firm's earnings capacity. What they did demonstrate is that the institutional business carries risks that the fee-based wealth business does not. Free cash flow generation has allowed consistent capital return. Share repurchases and dividends have returned substantial capital to shareholders across the past four fiscal years. The FY2025 return on tangible equity of roughly 21% — with Q1 2026 reaching 27.1% — reflects a business whose revenue mix has shifted durably toward activities that generate high returns on the capital required to run them.
Revenue Trend Analysis
YoY Change
+14.4%
8-Year CAGR
+8.1%
Peak Year
2025
Trend
Consistent Growth
Morgan Stanley has reported revenue across 9 fiscal years, compounding at +8.1% annually over 8 years. The most recent year saw a 14.4% increase versus the prior year. Revenue peaked in 2025 at $70.6B. Out of 8 reported periods, 7 showed growth and 1 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $70.6B | $16.9B | +14.4% |
| FY2024 | $61.8B | — | +14.1% |
| FY2023 | $54.1B | — | +0.9% |
| FY2022 | $53.7B | — | -10.2% |
| FY2021 | $59.8B | — | +22.6% |
| FY2020 | $48.8B | — | +17.4% |
| FY2019 | $41.5B | — | +3.6% |
| FY2018 | $40.1B | — | +5.7% |
| FY2017 | $37.9B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Morgan Stanley's revenue trajectory from 2019 to 2025 reflects both cyclical market forces and the structural shift toward wealth management revenues. In FY2019, the firm reported $41.4 billion in net revenues. FY2020 brought $48.2 billion, boosted by elevated trading volumes and capital markets activity during the COVID-19 pandemic. FY2021 was a peak year at $59.8 billion, driven by record investment banking fees as deal volumes and IPO activity surged in the post-pandemic reopening. FY2022 saw a sharp pullback to $53.7 billion as rising interest rates crushed investment banking activity industrywide, equity markets declined roughly 20%, and deal pipelines froze. The firm's ability to remain highly profitable in 2022 — despite the revenue decline — demonstrated the stabilizing value of Wealth Management fee income. FY2023 and FY2024 brought recovery, and FY2025 reached $70.6 billion in net revenues — the firm's strongest full year on record — accompanied by $16.9 billion in net income. The five-year revenue compound annual growth rate from 2019 to 2025 was approximately 9.3%, a pace well above that of most large financial institutions, reflecting both organic growth and the contribution of the E*TRADE and Eaton Vance acquisitions completed in 2020 and 2021.
Morgan Stanley's first quarter of 2026 set records across every major financial metric. Net revenues reached $20.6 billion, up 17% year over year, making it the firm's highest-revenue quarter in its history. Net income reached $5.6 billion, up 29% year over year. Earnings per share came in at $3.43. Return on tangible common equity — a key measure of capital efficiency — reached 27.1%, a level that puts Morgan Stanley among the most profitable large financial institutions in the world. The Institutional Securities segment benefited from a rebound in advisory and underwriting fees as deal markets reopened and equity capital markets activity accelerated. The Wealth Management segment attracted $118 billion in net new assets in the single quarter, with $54 billion specifically in fee-based accounts — indicating strong growth in the recurring advisory relationships that command the highest valuation multiples. Investment Management also contributed as rising markets lifted assets under management and associated fee revenues. The quarter demonstrated the operating leverage in Morgan Stanley's diversified model: when deal markets open, investment banking fees rise; meanwhile, wealth fee revenues continue compounding on a base of $9.3 trillion in client assets.
Morgan Stanley operates three business segments, each serving different client groups and generating revenue through different mechanisms. Institutional Securities generated $33.1 billion in net revenues in FY2025, making it the largest single segment. This business serves corporations, governments, institutional investors, and hedge funds through investment banking (M&A advisory, equity and debt underwriting), sales and trading (equities, fixed income, currencies, commodities), and prime brokerage. Wealth Management generated $31.8 billion in net revenues in FY2025 — nearly equal to Institutional Securities — and serves private clients ranging from mass-affluent households to billionaires through approximately 15,000 financial advisors and digital channels including E*TRADE. The segment manages $9.3 trillion+ in total client assets and attracted $356 billion in net new assets during FY2025. Investment Management generated $7.4 billion in net revenues in FY2025, managing approximately $1.5 trillion in assets under management through Parametric, Eaton Vance, Calvert, and other affiliated asset managers. The near-parity between Institutional Securities and Wealth Management is strategic: it ensures the firm benefits from both cyclical deal activity and stable recurring fee income, with Investment Management adding a third long-duration compounding revenue stream.
Morgan Stanley's profitability profile has improved significantly since James Gorman began the wealth management pivot following the 2008 financial crisis. In 2010, the firm traded at a discount to tangible book value — a reflection of market skepticism about a business model still heavily dependent on trading revenue and balance-sheet risk. By FY2025, the return on tangible common equity had reached approximately 21% on a full-year basis, with Q1 2026 reaching 27.1% — metrics competitive with the best-performing large banks globally. The efficiency ratio has also improved as Wealth Management and Investment Management revenues scaled without proportional cost increases. Fee-based advisory revenues have lower capital requirements and more predictable cost structures than trading, which requires significant technology, risk management, and regulatory capital. The $16.9 billion in net income generated in FY2025 compares to net income of roughly $6.1 billion in FY2019, representing a near-tripling of earnings over six years. The market cap reached approximately $195 billion in 2025, reflecting a valuation multiple that reflects the higher quality of a recurring fee-heavy revenue mix rather than the discount historically applied to volatile institutional banking businesses.
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CorpDigest. "Morgan Stanley Revenue & Financials." CorpDigest, https://corpdigest.com/company/morgan-stanley/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Morgan Stanley reported $71B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/morgan-stanley/financials" target="_blank" rel="noopener">CorpDigest — Morgan Stanley financials</a></div>