Morgan Stanley reported strong 2025 performance with record revenues and net income, driven by growth across its Integrated Firm segments and improved expense efficiency.
Full year net revenues increased 14% to $70.6 billion, with Q4 net revenues up 10% to $17.9 billion.
positiveFull year diluted EPS grew 28% to $10.21, and Q4 diluted EPS increased 21% to $2.68.
positiveWealth Management delivered record net revenues of $31.8 billion, up 12% year-over-year.
positiveInvestment Management reported record net revenues of $6.5 billion, up 11% year-over-year.
positiveExpense efficiency ratio improved to 68% for the full year from 71% in the prior year.
positiveFixed Income net revenues decreased 9% in Q4 and increased only 4% for the full year, impacted by lower commodities and foreign exchange results.
attentionProvision for credit losses increased in Q4 and for the full year, driven by portfolio growth and individual assessments.
attentionThe firm incurred $144 million in severance costs in Q1 2025 related to a reduction in force impacting approximately 2% of its global workforce.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Wealth Management | $8429000.0B | $7478000.0B | — | 46.6% |
Institutional Securities | $7931000.0B | $7267000.0B | — | 43.9% |
Investment Management | $1720000.0B | $1643000.0B | — | 9.5% |
| Total Revenue | $18080000.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Morgan Stanley delivered outstanding performance in 2025, reflecting multi-year investments contributing to growth and momentum across the Integrated Firm.
Institutional Securities served as a trusted advisor to clients as investment banking activity accelerated and global markets remained strong.
Total client assets in Wealth and Investment Management grew to $9.3 trillion, supported by over $350 billion in net new assets.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.