Morgan Stanley's Net Income Jumps 15% in Q2 2025

Morgan Stanley reported net revenues of $16,792 million for Q2 2025, marking a 12% increase from $15,019 million in the prior year's quarter. Net income applicable to Morgan Stanley was $3,539 million, a 15% increase compared to $3,076 million in Q2 2024. Diluted earnings per share (EPS) stood at $2.13, surpassing the analyst estimate of $1.93. The company demonstrated strong year-over-year growth in both revenue and net income, outperforming analyst EPS expectations for the quarter.

Segment Performance

The Wealth Management segment was a significant driver of performance, reporting net revenues of $7,764 million, a 14% increase year-over-year. This growth was primarily fueled by a 62% surge in transactional revenues to $1,264 million and an 11% increase in asset management revenues to $4,411 million. Net interest income in Wealth Management also grew by 6% to $1,910 million.

Investment Management also contributed positively, with net revenues rising 12% year-over-year to $1,552 million. This was largely driven by a substantial 168% increase in performance-based income and other revenues to $118 million, alongside a 7% increase in asset management and related fees to $1,434 million. Total Assets Under Management or Supervision increased by 13% to $1,713 billion.

The Institutional Securities segment saw a 9% increase in net revenues year-over-year, reaching $7,643 million. This segment's performance was supported by significant growth in equity sales and trading, which rose 23% to $3,721 million. Despite this, investment banking revenues decreased by 5% to $1,540 million, with advisory revenues declining by 14% to $508 million.