Morgan Stanley reported record Q2 FY2026 results driven by strong equities and wealth management. Management struck a bullish tone on the outlook, highlighting AI-related capital spending as a driver for investment banking and trading, but provided no explicit numeric guidance. Cross-company mentions were minimal, with only a brief note on the Mitsubishi UFJ partnership. Q2 FY2026 revenue $21.3bn, EPS $3.46 (both records).
Morgan Stanley reported record Q2 FY2026 results driven by strong equities and wealth management. Management struck a bullish tone on the outlook, highlighting AI-related capital spending as a driver for investment banking and trading, but provided no explicit numeric guidance. Cross-company mentions were minimal, with only a brief note on the Mitsubishi UFJ partnership. Q2 FY2026 revenue $21.3bn, EPS $3.46 (both records).
Morgan Stanley reported record Q2 FY2026 results driven by strong equities and wealth management. Management struck a bullish tone on the outlook, highlighting AI-related capital spending as a driver for investment banking and trading, but provided no explicit numeric guidance.…
Management noted accelerating adoption of AI across enterprises and discussed AI CapEx expectations, with data center spend projected to increase from $575B to $850B in 2026 and to $1.3 trillion in 2027, indicating we are about 10-15% through the investment cycle.
Equities franchise delivered record $6.3bn revenue; wealth management saw record NNA of $148bn.
Management's tone was confident and upbeat, driven by record revenues, strong client activity, and a bullish outlook on AI and M&A, with no notable shift in confidence.
Management noted accelerating adoption of AI across enterprises and discussed AI CapEx expectations, with data center spend projected to increase from $575B to $850B in 2026 and to $1.3 trillion in 2027, indicating we are about 10-15% through the investment cycle.
Wealth management record NNA $148B. Management's tone was confident and upbeat, driven by record revenues, strong client activity, and a bullish outlook on AI and M&A, with no notable shift in confidence.
Management reported higher technology-driven spend related to investments in infrastructure, AI-enabled efficiencies, and business growth, and discussed the broader AI CapEx cycle with significant projected increases in data center capital expenditure.
Management's tone was confident and upbeat, driven by record revenues, strong client activity, and a bullish outlook on AI and M&A, with no notable shift in confidence.
MUFG's strategic partnership with Morgan Stanley deepens, with initiatives like 2.0 expanding into foreign exchange and advisory, potentially increasing cross-border revenue streams for both firms.
“we're 25% owned by MEFG dating back to the financial crisis. The interaction with our partners is more intense than it's ever been.”
That's great context. Thank you for that. And I guess if I could ask a follow-up. The question of sustainability and trading is coming up a lot and I think the industry continues to hit higher highs. Can you just speak to the mix of the trading business between finance and intermediation, where you see that going? Yeah, obviously wins that you're getting to make the highs higher. Any color on the trade and sustainability. Thank you.
Yeah, I mean, I would put an exclamation point on that. For a lot of our investors and for a bunch in your community, The view is that we're a U.S. play, right? And that has made a lot of sense in the context of the compounding and growth of the wealth management business and some of the core growth opportunities in the U.S. economy. But we're also an Asia house, very much an Asia house. As you know, we're 25% owned by MEFG dating back to the financial crisis. The interaction with our partners is more intense than it's ever been. We launched 2.0 about a year and a half ago, which brings together not just research and equity content, but foreign exchange. And that has turned out to be a win-win. And there's lots more that we're looking to do together. And as Sharon points out, we have a thriving business in Taiwan. We have a thriving business in Korea. We obviously have this gateway Hong Kong effort into China and in Hong Kong itself. which is the entire equities, fixed income, commodities, and importantly investment banking chain. And we also have a wealth business that is doing quite well and is having a substantial year-over-year growth. So just to echo, and then we actually have a superb business in India. So I think what Sharon and I would sort of gear you to a bit regionally is this is not a new effort for us. We've had some edge in this region for a long time. We all have the miles to prove it, and we're going to continue to invest in our clients and our people in the region broadly.