Morgan Stanley Revenue & Financials

The number that matters most in Morgan Stanley's financials isn't revenue. It's the ratio between Institutional Securities and Wealth Management. In FY2025: Institutional Securities generated $33.1 billion. Wealth Management generated $31.8 billion. That near-parity is the entire Gorman thesis made visible in a single line item. A decade ago, the institutional side dominated. Now they're essentially equal — and the market pays a higher multiple for the wealth dollar because it recurs. FY2025 overall: $70.6 billion in net revenue, $16.9 billion in net income. Both records. The efficiency ratio improved as recurring fee revenue scaled without proportional cost increases. Return on tangible common equity hit 21.6% for the full year. Then Q1 2026 happened. $20.6 billion in revenue — beating consensus by $800 million. Net income of $5.6 billion, up 29% year-over-year. Earnings per share of $3.43, crushing the $3.06 estimate. ROTCE of 27.1% — a number that would make most bank CEOs weep with envy. The wealth platform attracted $118 billion in net new assets in ninety days, with $54 billion flowing into fee-based accounts. The stock trades around $194, giving the firm a market cap near $195 billion. It's up roughly 4% since the Q1 report. The revenue trajectory tells the story: $38 billion in 2017, $49 billion in 2020, $60 billion in 2021, a dip to $54 billion in 2022-2023 as deal markets froze, then $62 billion in 2024 and $71 billion in 2025 as the cycle turned. The margin story is equally important. Wealth Management's pre-tax margin has expanded as assets grew faster than headcount. Investment Management benefits from market appreciation lifting AUM without additional cost. Even Institutional Securities showed operating leverage in 2025 as deal volumes recovered against a relatively fixed cost base. The firm employs about 80,000 people globally.