Morgan Stanley reported record Q3 FY2025 results with revenue of $18.2B and EPS of $2.80, driven by strength in investment banking and equities. Management struck a bullish tone, citing a capital markets flywheel, favorable regulatory developments, and durable growth across wealth and investment management. Guidance included a Q4 tax rate of ~24%, while the firm highlighted strategic partnerships and internal investments rather than inorganic M&A. Record revenue and EPS: $18.2B revenue, $2.80 EPS, ROTCE 23.5%.
Morgan Stanley reported record Q3 FY2025 results with revenue of $18.2B and EPS of $2.80, driven by strength in investment banking and equities. Management struck a bullish tone, citing a capital markets flywheel, favorable regulatory developments, and durable growth across wealth and investment management. Guidance included a Q4 tax rate of ~24%, while the firm highlighted strategic partnerships and internal investments rather than inorganic M&A. Record revenue and EPS: $18.2B revenue, $2.80 EPS, ROTCE 23.5%.
Management expressed strong confidence in the sustainability of the capital markets recovery and the firm's growth trajectory, citing record results and a favorable regulatory shift.
Reported gross margin was 56.85%, reinforcing the quarter's better-than-guided profitability.
Investment banking revenues surged to $2.1B, with equity underwriting up 80% YoY and advisory up on higher completed M&A.
Wealth management posted 30.3% margin with $81B net new assets; workplace channel migration accelerating.
Management highlighted early AI use cases across the firm, including DevGenAI for code modernization, Parable for data analysis, and LeadIQ for advisor lead distribution, positioning AI as a driver of productivity and revenue growth.
Capital markets flywheel taking hold, investment banking pipeline strong. Management expressed strong confidence in the sustainability of the capital markets recovery and the firm's growth trajectory, citing record results and a favorable regulatory shift.
Management emphasized continued investment in the integrated firm, including wealth and investment management, institutional securities, and infrastructure, with a bias toward organic investment, while noting opportunistic buybacks and a large capital buffer.
Management expressed strong confidence in the sustainability of the capital markets recovery and the firm's growth trajectory, citing record results and a favorable regulatory shift.
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Op margin | FY2025 Q4 | 24% | 24% | GUIDED |