Goldman Sachs vs Morgan Stanley: Revenue, Profit and Business Model
Goldman Sachs reported $58.3B of revenue in FY2025 and $17.2B of net income. Morgan Stanley reported $70.6B of revenue in FY2025 and $16.9B of net income.
Latest financial snapshot
Goldman Sachs
- Latest revenue
- $58.3B (FY2025)
- Net income
- $17.2B
- Net margin
- 29.5%
- Revenue growth
- +7.3% a year, FY2016–FY2025
Morgan Stanley
- Latest revenue
- $70.6B (FY2025)
- Net income
- $16.9B
- Net margin
- 23.9%
- Revenue growth
- +8.2% a year, FY2016–FY2025
Financial summary
Goldman Sachs
Goldman's revenue history shows the cycle: $36.5 billion in 2019, a record $59.3 billion in 2021, $46.3 billion in 2023, $53.5 billion in 2024, and $58.28 billion in 2025. Net earnings were $17.18 billion in 2025 (EPS $51.32, ROE 15.0%). Momentum continued in 2026: first-half net revenues reached $37.57 billion and net earnings $12.26 billion, with record Q2 results, record assets under supervision of $4.04 trillion, and the quarterly dividend raised 11% to $5.00 per share for 3Q26.
Morgan Stanley
Net revenues rose from $34.6B in 2016 to $70.6B in 2025, with net income reaching $16.9B in 2025. Under James Gorman (CEO 2010-2023) the firm added Smith Barney, E*TRADE, and Eaton Vance to build recurring fee revenue. Under Ted Pick, results accelerated: Q2 2026 net revenue of $21.35B was up 27% year over year, net income of $5.58B was up 58%, and first-half 2026 revenue was about $42B with ROTCE near 27%.
Revenue and profit by year
Goldman Sachs
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $58.3B | $17.2B | 29.5% | +8.9% | Source |
| FY2024 | $53.5B | $14.3B | 26.7% | +15.7% | Source |
| FY2023 | $46.3B | $8.5B | 18.4% | -2.3% | Source |
| FY2022 | $47.4B | $11.3B | 23.8% | -20.2% | Source |
| FY2021 | $59.3B | $21.6B | 36.5% | +33.2% | Source |
| FY2020 | $44.6B | $9.5B | 21.2% | +21.9% | Source |
| FY2019 | $36.5B | $8.5B | 23.2% | -0.2% | Source |
| FY2018 | $36.6B | $10.5B | 28.6% | +11.9% | Source |
| FY2017 | $32.7B | $4.3B | 13.1% | +6.3% | Source |
| FY2016 | $30.8B | $7.4B | 24.0% | — | Source |
Morgan Stanley
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $70.6B | $16.9B | 23.9% | +14.4% | Source |
| FY2024 | $61.8B | $13.4B | 21.7% | +14.1% | Source |
| FY2023 | $54.1B | $9.1B | 16.8% | +0.9% | Source |
| FY2022 | $53.7B | $11B | 20.6% | -10.2% | Source |
| FY2021 | $59.8B | $15B | 25.2% | +22.6% | Source |
| FY2020 | $48.8B | $11B | 22.6% | +17.4% | Source |
| FY2019 | $41.5B | $9B | 21.8% | +3.6% | Source |
| FY2018 | $40.1B | $8.7B | 21.8% | +5.7% | Source |
| FY2017 | $37.9B | $6.1B | 16.1% | +9.6% | Source |
| FY2016 | $34.6B | $6B | 17.3% | — | Source |
Where the revenue comes from
Goldman Sachs
- Global Banking & Markets~71%
M&A advisory, equity and debt underwriting, equities and FICC trading, and financing. Record $41.45B of FY2025 net revenues.
- Asset & Wealth Management and Platform Solutions~29%
Management, incentive, and wealth advisory fees, private-markets and principal investment returns, plus the remaining consumer card business. About $16.8B combined in FY2025.
Morgan Stanley
- Institutional Securities
Advisory, underwriting, sales and trading, prime brokerage, lending, and capital markets services.
- Wealth Management
Advisor fees, brokerage commissions, net interest income, lending, deposits, E*TRADE, and workplace services.
- Investment Management
Asset-management fees from institutional and individual investors, including Eaton Vance and Parametric products.
- Banking and lending
Net interest income and lending products connected to wealth and institutional clients.
Business model and strategy
Goldman Sachs
How it makes money
Goldman operates two main segments. Global Banking & Markets earns advisory fees on mergers, equity and debt underwriting fees, and trading and financing revenue from hedge funds, asset managers, and corporates across equities and FICC.
Growth strategy
After unwinding most of its consumer push, Goldman is concentrating on two engines. In Global Banking & Markets it aims to stay first in M&A advisory and lead the biggest equity deals; in Q2 2026 investment banking fees rose 55% to $3.40 billion.
Competitive advantage
Goldman's edge is its position at the top of M&A advisory league tables, deep institutional trading relationships, and a brand that boards and governments hire for complex transactions. Those relationships feed other businesses: an IPO or merger mandate often leads to financing, hedging, and wealth management for the founders and executives involved.
Morgan Stanley
How it makes money
Morgan Stanley reports three segments. Institutional Securities earns advisory and underwriting fees, equity and fixed-income trading revenue, prime brokerage financing, and corporate lending income. Wealth Management earns asset-based advisory fees, brokerage commissions, and net interest income on client deposits and loans across its advisor network, E*TRADE, and Morgan Stanley at Work.
Growth strategy
The strategy is to grow client assets across the wealth and investment management franchise, use Morgan Stanley at Work and E*TRADE as feeders into advisor-led accounts, and keep share in equities, advisory, and underwriting. The firm also deploys AI tools for advisors, including assistants built with OpenAI.
Competitive advantage
Morgan Stanley's edge is the combination of a leading equities and advisory franchise with one of the largest wealth platforms in the US. Workplace stock plans and E*TRADE bring in employees and self-directed investors early, and advisor-led wealth management retains them as their assets grow. That mix of fee-based wealth revenue and cyclical Wall Street revenue gives it steadier earnings than a pure investment bank.
Questions about Goldman Sachs vs Morgan Stanley
Which company has higher revenue — The Goldman Sachs Group, Inc. or Morgan Stanley?
The Goldman Sachs Group, Inc. reported $58.3B (FY2025), while Morgan Stanley reported $70.6B (FY2025). By last reported revenue, Morgan Stanley is the larger business, with The Goldman Sachs Group, Inc. reporting a smaller revenue base.
What is the market cap of The Goldman Sachs Group, Inc. vs Morgan Stanley?
The Goldman Sachs Group, Inc.'s market capitalisation stands at $280.0B, while Morgan Stanley's is $330.9B. Morgan Stanley carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to The Goldman Sachs Group, Inc..
Which is more financially efficient — The Goldman Sachs Group, Inc. or Morgan Stanley?
The Goldman Sachs Group, Inc. generates $1.23M / employee in revenue per employee, while Morgan Stanley generates $851k / employee. The Goldman Sachs Group, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do The Goldman Sachs Group, Inc. and Morgan Stanley make money?
The Goldman Sachs Group, Inc. and Morgan Stanley generate revenue in fundamentally different ways. The Goldman Sachs Group, Inc.: Goldman operates two main segments. Morgan Stanley: Morgan Stanley reports three segments.
Which company is valued higher relative to revenue — The Goldman Sachs Group, Inc. or Morgan Stanley?
On a price-to-sales (P/S) basis, The Goldman Sachs Group, Inc. trades at 4.8x P/S and Morgan Stanley at 4.7x P/S. The Goldman Sachs Group, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Morgan Stanley. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is The Goldman Sachs Group, Inc. bigger than Morgan Stanley?
By last reported revenue, Morgan Stanley ($70.6B (FY2025)) is the larger company compared to The Goldman Sachs Group, Inc. ($58.3B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Goldman Sachs vs Morgan Stanley overview