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Morgan Stanley posts Q2 trading and wealth growth, beating expectations
The bank reported record net revenue of $21.35 billion, and wealth management added $148 billion in net new assets in the quarter.
Morgan Stanley delivered what Yahoo Finance called the strongest results among the five largest US banks in an earnings week driven by higher trading activity. In the second quarter of 2026, the bank reported record net revenue of $21.35 billion, an 8.6% beat versus the $19.65 billion consensus expectation, with results up 27.1% year over year and slightly higher sequentially.
The outlet said diluted earnings per share rose 62.4% year over year to $3.46, topping Wall Street’s $2.92 projection. Morgan Stanley also posted equities trading revenue at an all time high of $6.3 billion, about $1.9 billion above analysts’ forecasts, and it pointed to broad strength across its equities franchise, including strength in Asia.
Beyond trading, Yahoo Finance highlighted Morgan Stanley’s wealth and investment management business as a recurring, higher margin driver. Wealth management generated record quarterly revenue of $8.9 billion, up 14% year over year, with a 30.5% pretax margin, supported by higher asset management fees and net interest income, while adding a record $148 billion in net new assets and pushing total client assets above $10 trillion.
Following the report, the article noted that Freedom Broker upgraded Morgan Stanley to Buy from Hold on July 17, raising its price objective to $245 from $200. It also cited strong first half return metrics, with first half return on tangible common equity reaching 26.6%.