Morgan Stanley Third-Quarter Results Top Views Amid Equity Trading Boost

10:44 AM EDT, 10/14/2026 (MT Newswires) -- Morgan Stanley (MS) reported third-quarter results above Wall Street's estimates Wednesday, driven by robust revenue growth within its equity trading business. Morgan Stanley posted earnings of $3.03 per share for the September quarter, up from $2.80 the year before and above the FactSet-polled consensus of $2.95. Revenue rose 12% to $20.34 billion, beating the Street's $19.93 billion view. Revenue in its institutional securities division grew to $10.03 billion from $8.52 billion in the prior-year quarter, buoyed by a 41% jump in equity revenue to $5.8 billion due to client engagement strength. Investment banking revenue rose 2% as higher merger and acquisition volume in the Americas lifted advisory sales, although equity underwriting declined on fewer initial public offerings. Market volumes slowed across asset classes as Labor Day approached after an "unusually brisk" July and August, Chief Executive Ted Pick told analysts on an earnings call, according to a FactSet transcript. Sentiment soured as investors reassessed risk reward into the fourth quarter and year end amid renewed tensions in the Middle East and higher interest rates globally, Pick said. The US Federal Reserve raised its policy rate by 25 basis points last month, its first increase in just over three years. "Elevated asset prices in a fourth year of a bull market for equities and uncertain electoral and policy responses in both the US and globally are reasons to be more cautious as we move into the fourth quarter," Pick said on the call. Morgan Stanley's shares fell 2.8% intraday Wednesday, and are up 2.2% year to date. The investment bank's wealth management business saw revenue rise 10% to $9.07 billion, boosted by robust asset management fees and higher net interest income. Revenue in the investment management unit dropped 12% to $1.46 billion. Bank of America (BAC) on Wednesday reported an unexpected year-over-year decline in third-quarter earnings as the Treasury Department fined the lender $1.21 billion for failing to flag suspected money laundering activities. On Tuesday, Wells Fargo (WFC) reported higher-than-expected third-quarter earnings, although its revenue fell short of market projections amid disappointing net interest income. JPMorgan Chase's (JPM) results missed market expectations amid investment securities losses, while Citigroup (C) and Goldman Sachs (GS) beat Street estimates. Ahead of the earnings season, Oppenheimer expected earnings at capital markets-oriented banks to be pressured. Price: 180.91, Change: -5.73, Percent Change: -3.07