People walk past Morgan Stanley global headquarters in Manhattan on March 20, 2025 in New York City. 

Spencer Platt | Getty Images

Morgan Stanley on Thursday reported fourth-quarter results that exceeded Wall Street expectations on the back of strong revenue from wealth management.

Here's what the company reported compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: $2.68 vs. $2.44 expected
• Revenue: $17.89 billion vs. $17.77 billion expected

Fourth-quarter net income rose to $4.40 billion, or $2.68 per share, from $3.71 billion, or $2.22 per share, a year ago. Revenue increased to $17.89 billion from $16.22 billion a year ago.

The bank stock edged slightly lower in premarket trading following the report.

The wealth management unit posted $8.4 billion in net revenue in the most recent quarter, up from $7.5 billion a year earlier. For the full year, the division generated a record $31.8 billion in net revenue.

Total client assets in the wealth and investment management business climbed to $9.3 trillion, fueled by more than $350 billion in net new assets.

"Morgan Stanley delivered outstanding performance in 2025," Ted Pick, the bank's CEO and chairman, said in a statement. "Our performance reflects multi-year investments which have contributed to growth and momentum across the Integrated Firm."

Investment banking was also a standout for the firm. Net revenue for the segment jumped 47% to $2.41 billion from $1.64 billion a year earlier, driven by stronger advisory fees as completed M&A activity increased across all regions.

The firm bought back $1.5 billion of its common shares during the quarter and $4.6 billion over the full year under its share repurchase program.

Morgan Stanley shares have gained 38% over the past 12 months, but have fallen nearly 3% so far this week as other big banks reported their results.

JPMorgan Chase topped expectations for fourth-quarter results on strong equities and fixed income trading revenue. Wells Fargo posted weaker-than-expected revenue, while Bank of America and Citigroup beat consensus estimates.

Source link