Morgan Stanley has reported stronger-than-expected third-quarter earnings and revenue, supported by a sharp increase in equities trading income amid heightened activity in financial markets.
The US investment bank announced its results on Wednesday, October 14, 2026, beating analysts’ forecasts for both earnings per share and total revenue.
The bank posted earnings per share of $3.03, exceeding the $2.91 projected by analysts surveyed by LSEG.
Revenue increased by 12 per cent to $20.34 billion, surpassing the consensus estimate of $19.95 billion.
Net profit also rose by 6.5 per cent to $4.91 billion compared with the corresponding period a year earlier, reflecting the strength of its trading operations.
Morgan Stanley’s equities trading division was a major contributor to the performance, generating $5.8 billion in revenue, a 41 per cent increase from the same period last year.
The division exceeded analysts’ expectations by approximately $909 million, according to financial reports by CNBC and other outlets.
The strong performance was supported by heightened market volatility associated with interest-rate developments and geopolitical tensions, which encouraged investors to adjust their portfolios and increased demand for trading services, Reuters reported.
However, the bank recorded mixed results across other business segments.
Fixed-income trading revenue declined by 7.3 per cent to $2.01 billion, reflecting weaker performance in the division, while investment banking revenue increased by 2 per cent to $2.16 billion.
The results underscore the importance of Morgan Stanley’s equities trading business in driving overall earnings growth, even as performance across its other divisions remained uneven.
Looking ahead, the sustainability of the bank’s growth will depend on market conditions, investor activity and its ability to maintain momentum across its trading, investment banking and wealth management operations.
- CNBC, Reuters
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