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Morgan Stanley MS

Financial  —  Capital Markets
196.31 (0.01) (0.01%) as of 25 Sep
Market cap
$309.4B
P/E
15.7×
S&P 500 Member Dividend Champion (10y) Revenue Champion (5y)
Indexes indicate stock being part of an index,
Growth Flags show if company had growth for consecutive years
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

Morgan Stanley (MS) Financial Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Snapshot

Morgan Stanley generated revenue of $119.7 billion, operating income of $71.0 billion and net income of $17.0 billion in FY2025. Diluted EPS was $10.21 in FY2025, while shareholders’ equity was $112.7 billion in FY2025.

Revenue reached $34.5 billion, operating income reached $20.5 billion and net income reached $5.7 billion in Q2 FY2026. Diluted EPS was $3.46 in Q2 FY2026. On a trailing basis, revenue was $128.8 billion and net income was $20.4 billion in the TTM to Q2 FY2026.

Growth

Revenue rose 11.5% in FY2025 against FY2024, reaching $119.7 billion in FY2025. Revenue compound annual growth was 22.0% in FY2022–FY2025 and 17.9% in FY2020–FY2025. Diluted EPS increased 28.4% in FY2025 against FY2024 to $10.21 in FY2025, with compound annual growth of 18.4% in FY2022–FY2025 and 9.59% in FY2020–FY2025.

Free cash flow was −$20.8 billion in FY2025, and its year-over-year and multi-year growth rates were not meaningful because the relevant earlier or endpoint values were zero or negative. Revenue was $34.5 billion in Q2 FY2026, up 17.4% in Q2 FY2026 against Q2 FY2025 and 3.98% in Q2 FY2026 against Q1 FY2026. Diluted EPS was $3.46 in Q2 FY2026, up 62.4% year over year and 0.87% sequentially.

Profitability

Gross margin was 96.1%, operating margin was 59.3%, pre-tax margin was 18.3% and net margin was 14.2% in FY2025. Over FY2020–FY2025, gross margin increased by 1.7 percentage points and operating margin increased by 24.6 percentage points, while pre-tax margin declined by −9.1 percentage points and net margin declined by −7.0 percentage points.

Return on equity was 16.4%, return on assets was 1.23% and return on invested capital was 57.1% in FY2025. Operating margin was 59.4% in Q2 FY2026, compared with 59.1% in Q1 FY2026, while gross margin was 95.8% in Q2 FY2026, compared with 96.2% in Q1 FY2026. Industry median comparisons are not reported.

Balance sheet

Total debt was $348.9 billion, cash and short-term investments were $383.8 billion, and net debt was −$34.9 billion in FY2025. Shareholders’ equity was $112.7 billion and book value per share was $71.57 in FY2025. Working capital was −$182.0 billion in FY2025.

Net debt was −$78.5 billion in Q2 FY2026, compared with −$45.4 billion in Q1 FY2026. The current ratio was 0.8× and debt to equity was 3.3× in Q2 FY2026. Net debt remained negative in FY2025 and Q2 FY2026, while total debt and cash were reported for FY2025.

Cash flow & capital return

Operating cash flow was −$17.9 billion, capital expenditure was $2.9 billion and free cash flow was −$20.8 billion in FY2025. Free cash flow represented −122.1% of net income in FY2025. Operating cash flow was −$15.6 billion and free cash flow was −$18.6 billion in the TTM to Q2 FY2026.

Dividends paid were $6.6 billion and net share repurchases were $5.8 billion in FY2025, producing capital returned to shareholders of $12.4 billion in FY2025. Capital returned to shareholders was $64.0 billion over FY2021–FY2025. Weighted average shares were 1.6 billion shares in FY2025 and declined −1.81% over FY2020–FY2025.

Valuation

Market capitalisation was $305.1 billion as of September 24, 2026. The P/E was 15.7× as of September 24, 2026, higher than the 15.6× five-year median as of September 24, 2026, over the five fiscal years to FY2025, and the 14.1× ten-year median as of September 24, 2026, over the ten fiscal years to FY2025.

The P/S was 2.4× and P/B was 2.8× as of September 24, 2026; both were higher than their five-year medians of 2.2× and 1.8×, respectively, as of September 24, 2026, over the five fiscal years to FY2025. EV/Sales was 1.8× as of September 24, 2026, higher than its 1.0× five-year median as of September 24, 2026, over the five fiscal years to FY2025. Industry median comparisons are not reported.

What changed since last quarter

Revenue was $34.5 billion in Q2 FY2026, up 3.98% in Q2 FY2026 against Q1 FY2026 and 17.4% in Q2 FY2026 against Q2 FY2025. Diluted EPS was $3.46 in Q2 FY2026, up 0.87% sequentially and 62.4% year over year. Net income was $5.7 billion in Q2 FY2026, compared with $5.6 billion in Q1 FY2026 and $3.6 billion in Q2 FY2025.

Operating margin increased by 0.3 percentage points in Q2 FY2026 against Q1 FY2026 and by 0.9 percentage points in Q2 FY2026 against Q2 FY2025. Gross margin declined by −0.5 percentage points sequentially and by −0.2 percentage points year over year in Q2 FY2026. Free cash flow was −$3.6 billion in Q2 FY2026. No management explanation for these changes is reported.

Open questions

  • What factors drove the changes in quarterly revenue and net income?
  • What explains the negative operating cash flow and free cash flow?
  • What accounts for the movement in net debt during the latest quarter?
  • What factors contributed to the change in gross margin during the latest quarter?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.