Morgan Stanley (NYSE:MS) Releases Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Morgan Stanley beat quarterly expectations: EPS came in at $3.03 versus the $2.93 consensus, while revenue reached $20.34 billion, ahead of the $19.93 billion estimate.
• The board authorized a $20 billion share-repurchase program, allowing the company to buy back up to 5.6% of outstanding shares.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and average price target of $219.43, although some firms have recently lowered their targets and investor concerns remain about cooling deal activity and earnings momentum.

Morgan Stanley (NYSE:MS - Get Free Report) posted its earnings results on Wednesday. The financial services provider reported $3.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.93 by $0.10, FiscalAI reports. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm had revenue of $20.34 billion during the quarter, compared to the consensus estimate of $19.93 billion.

Morgan Stanley Price Performance

Shares of NYSE:MS opened at $186.61 on Wednesday. The firm's 50 day moving average is $206.49 and its two-hundred day moving average is $203.34. Morgan Stanley has a 52 week low of $151.88 and a 52 week high of $232.25. The firm has a market capitalization of $294.33 billion, a P/E ratio of 15.09, a PEG ratio of 1.26 and a beta of 1.22. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65.

Morgan Stanley declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 24th that permits the company to repurchase $20.00 billion in outstanding shares. This buyback authorization permits the financial services provider to buy up to 5.6% of its shares through open market purchases. Share buyback plans are generally an indication that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

MS has been the topic of several analyst reports. Jefferies Financial Group raised shares of Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. UBS Group decreased their price objective on shares of Morgan Stanley from $260.00 to $236.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Citigroup lowered their target price on Morgan Stanley from $235.00 to $210.00 and set a "neutral" rating for the company in a research note on Wednesday, September 30th. Evercore reaffirmed an "outperform" rating on shares of Morgan Stanley in a research report on Monday, July 6th. Finally, TD Cowen initiated coverage on Morgan Stanley in a research report on Thursday, October 8th. They set a "hold" rating and a $210.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $219.43.

Key Stories Impacting Morgan Stanley

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Morgan Stanley plans to support tokenized equities on its alternative trading system, potentially strengthening its position in digital-asset infrastructure and creating a longer-term growth opportunity. Morgan Stanley Plans Tokenized Equities Support
• Positive Sentiment: The upcoming earnings report is a major near-term catalyst. Morgan Stanley previously delivered strong results, with the latest reported quarter showing $3.46 in earnings per share and $21.35 billion in revenue, both ahead of expectations. Morgan Stanley Reports Earnings Tomorrow
• Neutral Sentiment: Options markets are targeting roughly $205 for MS around the earnings event, indicating that traders expect elevated volatility and a potentially significant post-results move. Morgan Stanley Stock Selloff Cools Ahead of Earnings
• Neutral Sentiment: Analysts and market commentators are focused on wealth-management results, asset flows, trading activity and the effect of higher interest rates on funding costs and dealmaking. The broader financial sector is entering earnings season with investor expectations tempered. What to Watch When Morgan Stanley Reports
• Negative Sentiment: Enthusiasm surrounding mergers, acquisitions and IPO activity has cooled after the stock reached approximately $230 in July, contributing to the recent pullback and investor caution ahead of earnings. Morgan Stanley Stock Selloff Cools Ahead of Earnings
• Negative Sentiment: Erste Group Bank modestly reduced its 2026 earnings-per-share estimate to $12.79 from $12.83 and maintained a Hold rating. While the revision is small, it reinforces concerns that earnings momentum may be less robust than previously expected. Morgan Stanley Earnings Estimate Revision

About Morgan Stanley

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

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