| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 40 | 16.7x | 17.9x | Around median | |
Growth | 57 | 13.0% | 7.1% | Around median | |
Quality | 89 | — | — | Top tier | |
Safety | 11 | — | — | Bottom tier | |
Capital Return | 49 | 1.94% | 2.11% | Around median | |
Momentum | 92 | 41.3% | 2.7% | Top tier | |
Sentiment | 63 | 16 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Morgan Stanley operates through three interconnected revenue engines: Institutional Securities, Wealth Management, and Investment Management. Institutional Securities earns income from investment banking advisory, underwriting, equities and fixed-income trading, and financing, while Wealth Management relies on asset-based and advisory fees, transactions, and net interest income through financial advisors, E*TRADE channels, and employee stock plans. Investment Management charges fees on assets under management and benefits from solutions such as Parametric, alternative investments, and fixed-income strategies.
In Q2 FY2026, EDGAR data showed revenue of $34.5 billion, net income of $5.6 billion, and earnings per share of $3.46, compared with revenue of $29.4 billion, net income of $3.5 billion, and earnings per share of $2.13 in Q2 FY2025. In the earnings presentation dated July 15, 2026, the company reported record revenue of $21.3 billion and CVA-adjusted earnings per share of $3.46, with a return on tangible equity of 26.6% and an efficiency ratio of 65% for the first half of FY2026.
At the business-mix level in Q2 FY2026, Institutional Securities recorded record revenue of $11 billion and pretax profit of $4.3 billion, driven by equities revenue of $6.3 billion, fixed-income revenue of $2.5 billion, and investment banking revenue of $2.4 billion. Wealth Management generated record revenue of $8.9 billion, pretax profit of $2.7 billion, and a pretax margin of 30.5%, while Investment Management revenue increased 6% year over year to $1.6 billion and its assets under management reached $2 trillion.
The analyst consensus is Buy, with an average price target of $239.5 and a target range of $215 to $260. The average is only about 3.1% above the top of the 52-week range of $232.25, while the highest target is about 12% above that peak and the lowest target falls within the 52-week range of $145.66–$232.25. This range reflects optimism that Wealth Management flows will continue and capital markets will recover, but it leaves clear sensitivity to the possibility that trading and underwriting revenue will retreat from record Q2 FY2026 levels to lower levels.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Morgan Stanley reported record revenue of $21.3 billion and CVA-adjusted earnings per share of $3.46 in its July 15, 2026 call, while EDGAR data showed revenue of $34.5 billion and net income of $5.6 billion. Institutional Securities recorded $11 billion in revenue, including $6.3 billion from equities, $2.5 billion from fixed income, and $2.4 billion from investment banking. Wealth Management also generated $8.9 billion in revenue and a pretax margin of 30.5%, supported by higher assets and retail investor activity.
Net new assets in Wealth Management reached a record $148 billion, slightly more than half of which came from stock-plan inflows linked to IPOs of late-stage private companies. Management explained that Morgan Stanley serves about 70% of the 100 largest unicorn companies by market capitalization within its workplace programs channel, linking IPOs to a client-acquisition path. On August 2, 2026, a report cited $74 billion of inflows supported by the SpaceX IPO and other new issuances, while the company is focused on converting these relationships into advisory services and fee-based assets.
Automated analysis for informational purposes only — not investment advice.
All regions contributed to year-over-year Institutional Securities revenue growth in Q2 FY2026, and the global equities business recorded record revenue of $6.3 billion. Prime brokerage revenue increased with higher average client balances and strong activity in Asia, and management described its businesses in Japan, India, Taiwan, Korea, and Hong Kong as important parts of its regional presence. Management also said its collaboration with MUFG, which owns 25% of Morgan Stanley according to the call, expanded to include research, equities content, and foreign exchange.
Morgan Stanley Research estimated in the July 15, 2026 call that data-center spending would reach about $850 billion in 2026, $1.3 trillion in 2027, and $1.5 trillion in 2028. The company can participate as an advisor, financier, underwriter, and capital allocator across debt and equity markets and private and public financing. However, management declined to specify the percentage of spending the company could intermediate and emphasized that the scale and timing of the cycle could change due to chip innovation, energy, supply chains, and government intervention.
Slightly more than half of the $148 billion in net new assets in Q2 FY2026 was linked to post-IPO stock-plan inflows, making offering timing and vesting schedules influential in quarterly results. Record equities revenue of $6.3 billion and investment banking revenue of $2.4 billion also depend on continued client, market, and merger-and-acquisition activity. Additional risks include competition from smaller investment advisors in the workplace programs channel, higher execution and technology investment costs, and geopolitical and supply-chain risks mentioned by management in the July 15, 2026 call.
Morgan Stanley ended Q2 FY2026 with a standardized CET1 ratio of 14.8% after adding $18 billion to CET1 capital over ten quarters. Management estimated the capital surplus at no less than 300 basis points, allowing the company to finance client activity, invest in the business, and maintain a margin of safety through the cycle. During the same quarter, the company repurchased $1.5 billion of common shares and raised the quarterly dividend by 15% to $1.15 per share.
