Morgan Stanley posts record quarterly revenue and profit as equities trading surges 69%
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- Morgan Stanley posted second-quarter profit of $5.58 billion, a 58% increase from the prior year, with revenue rising 27% to $21.35 billion.
- Morgan Stanley reported equities trading revenue of $6.3 billion, $1.9 billion above StreetAccount analyst expectations and up 69% year-over-year.
- Morgan Stanley delivered earnings per share of $3.46, exceeding the LSEG estimate of $2.94, fueled by outsized gains in its trading division.
- Goldman Sachs and JPMorgan Chase also significantly beat equities trading estimates, with combined beats of $4.4 billion, indicating a broad Wall Street trend.
- CEO Ted Pick is expected to address the outlook for the remainder of the year amid ongoing geopolitical tensions that could affect market activity.
Why it matters: The outsized beat in equities trading—$1.9 billion above expectations—gives Morgan Stanley and its peers material upside in a volatile year, as AI-driven market activity boosts trading volumes. This shift favors trading desks over slower-moving investment banking divisions, altering near-term revenue dynamics across major banks.
