Morgan Stanley tops estimates as equities trading revenue exceeds expectations by $909 million

Morgan Stanley surpassed analysts' expectations for third-quarter profit, driven by robust equity trading revenue and investment banking activity. The bank's earnings per share reached $3.03, surpassing the forecast of $2.91. Strong equity trading generated $5.8 billion in revenue, a 41% increase compared to the same period last year, according to the bank's head of markets, Daniel Coatsworth.

However, fixed-income trading revenue declined 7.3% to $2.01 billion, mirroring a similar drop at Goldman Sachs. Total revenue for the quarter was $4.91 billion, against expectations of $2.91 per share. The IPO market saw a 41% drop in global deal value to $993 billion, falling below the $1 trillion threshold for the first time in nearly a year.

Morgan Stanley played a lead role in advising companies on significant acquisitions, including Uber's purchase of Delivery Hero and Consolidated Precision Products' acquisition by GE Aerospace. Investment banking revenue grew 2% to $2.16 billion, while JPMorgan Chase reported a revenue slowdown. Despite the challenging market conditions, Morgan Stanley's stock has gained 5.1% in 2026, lagging broader market performance but outpacing peer Goldman Sachs.