In the second quarter of 2026, Morgan Stanley's earnings per share came in at $3.46, topping the $2.94 consensus from LSEG's survey of analysts. Revenue climbed 27% to $21.35 billion.
Equities trading revenue soared 69% to a record $6.3 billion, beating the StreetAccount analyst consensus by roughly $1.9 billion. Morgan Stanley noted strong performance across its equities division and highlighted "notable strength in Asia," a familiar Wall Street trend as the AI trade expands globally.
Ted Pick, the CEO, stated in the earnings release, "Active markets and consistent execution across all three regions drove exceptional results for our integrated firm."
The 69% rise in equities trading revenue occurred during a period of intense market activity driven by the global AI boom, which helped JPMorgan and Goldman exceed equities trading forecasts by a total of $4.4 billion, while their investment banking revenues surpassed estimates by $1 billion combined.
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Fixed income trading increased 13% to $2.46 billion, roughly in line with the consensus forecast, supported by strong credit trading outcomes.
These results underscore how Wall Street's top banks are cashing in on the artificial intelligence-driven market frenzy. The AI boom has ignited a surge in trading volumes, particularly in equities, as investors pile into technology stocks and related sectors. This heightened activity has benefited Morgan Stanley, JPMorgan, and Goldman Sachs, all of which reported equities trading revenues well above expectations.
Morgan Stanley's 69% jump in equities trading was the standout, but the firm also saw strong performance in its wealth management and investment banking divisions. The record quarterly revenue of $21.35 billion reflects the bank's broad-based strength across regions and business lines. With stock markets hovering near record highs and corporate confidence rising, the outlook for continued dealmaking and trading activity remains bright.
Meanwhile, the wealth management segment benefits from rising asset values and client inflows, adding a steady source of growth. This combination of cyclical trading gains and stable fee income positions Morgan Stanley well for the remainder of the year.
The surging demand for AI-related stocks has not only boosted trading revenues but also fueled a wave of capital raising and advisory deals, as companies rush to finance their AI ambitions. This secular trend, combined with stable interest rates and resilient economic growth, suggests that Wall Street's earnings momentum could persist into the second half of the year, provided market volatility remains elevated.
The firm's large wealth management unit posted a 14% increase in revenue to $8.86 billion, approximately $146 million above estimates, supported by rising asset values from the stock market rally and growth in deposits and lending.
In investment management, Morgan Stanley's smallest division, revenue increased roughly 6% to $1.65 billion, benefiting from higher asset values and essentially meeting expectations. Overall, Morgan Stanley's diversified business model delivered record results in a period of extraordinary market activity.
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