Morgan Stanley Delivers Strong Q2 2025 Results Amid Market Volatility
Morgan Stanley reported a strong second quarter of 2025, with the firm delivering $16.8 billion in revenue, $2.13 in EPS and an 18.2% return on tangible.
The results were highlighted by Chairman and Chief Executive Officer Ted Pick during the company's recent conference call. "The second quarter unfolded with two distinct halves," said Pick. "The first half began with uncertainty and market volatility associated with the U.S. trade policy, and the second half ended with increasing engagement and a steady rebound in capital markets."
Morgan Stanley's results have shown a consistent cadence of higher levels of performance over the past six quarters, with earnings per share (EPS) growing from $2.02 to $1.82, $1.88, $2.22, $2.60 and finally to $2.13 in Q2 2025.
The company's Integrated Firm strategy is paying off, with total client assets across Wealth and Investment Management climbing to over $8.2 trillion, nearing the firm's target of exceeding $10 trillion.
Wealth Management had a record-breaking quarter, with profits before tax reaching $2.2 billion on margins of 28% plus. Net new assets of $59 billion were strong despite higher seasonal tax payments, and fee-based flows of $43 billion demonstrate the value of advice amidst complex market conditions.
The company's ongoing investments in its world-class platform are expected to drive future growth, with a build-out of E-Trade capabilities and the expansion of its central workplace channel serving as key engines for growth.
Investment Management also delivered strong results, generating $11 billion in inflows during Q2 2025. The company's leading parametric platform and strong Fixed Income strategies have positioned this business to achieve consistent long-term inflows.
The Institutional franchise also performed well, with revenues of $7.6 billion supported by the firm's leading equities markets business that reached $3.7 billion in top-line performance.
While market volatility persisted during the quarter, Morgan Stanley's Investment Banking recovery is gaining momentum, driven by a resumption of investment banking activity in June and clients turning to the firm as market windows reopen.
Morgan Stanley remains constructive on the market environment and is intensely focused on continuing to deliver outstanding durable results for clients and returns for shareholders. The company has also raised its dividend to $1 per share, with incremental capital deployment planned to support clients, grow businesses, opportunistically buy back stock and evaluate inorganic opportunities where there is clear strategic alignment.
