Morgan Stanley on Wednesday reported record revenue and profit for the second quarter, driven by a 69% surge in equities trading revenue. The firm posted earnings per share of $3.46, ahead of the $2.94 consensus from LSEG. Revenue reached $21.35 billion, versus the $19.64 billion estimate. Profit rose 58% from a year earlier to $5.58 billion as the company benefited from stronger markets and deal activity across its businesses.
Equities trading revenue was a standout, hitting a record $6.3 billion, about $1.9 billion above StreetAccount expectations, with strength cited across the franchise and notable activity in Asia. Fixed income trading rose 13% to $2.46 billion, roughly in line with forecasts, buoyed by gains in credit trading.
Investment banking revenue surged 58% to $2.44 billion, driven by additional completed mergers, initial public offerings and related equities deals, and rising debt issuance. Revenue in wealth management climbed 14% to $8.86 billion, aided by higher asset levels from a stronger stock market and growth in deposits and lending. Investment management revenue rose about 6% to $1.65 billion, essentially matching the estimate as asset values climbed.
CEO Ted Pick attributed the results to active markets and consistent execution across all three regions, underscoring the strength of Morgan Stanley’s integrated platform as the AI-driven trading cycle expanded globally. The quarter’s performance echoed a broader industry trend as peers also reported robust equity trading results amid brisk activity in AI-related markets.
