Morgan Stanley Posts Stellar Q3 Results with $4.6B Profit, Largest Earnings Beat in Five Years

Morgan Stanley shattered expectations with a $4.6 billion third-quarter profit, marking a 45% surge from the previous year. Revenue climbed 18%, far exceeding analyst forecasts. Earnings per share hit $2.80, outpacing the $2.10 consensus estimate by LSEG—the firm's most significant earnings surprise since 2018.

Premarket shares rallied nearly 5%, extending year-to-date gains to 24%. The bank's success was broad-based, with equities trading soaring 35% to $4.12 billion—$720 million above projections—fueled by heightened client activity and record prime brokerage performance. Fixed income trading contributed an additional $2.17 billion.

Newly appointed Chairman and CEO Ted Pick attributed the results to global execution strength, highlighting a 23.5% return on tangible common equity and $18.2 billion in revenue. "Our Integrated Firm delivered an outstanding quarter," Pick stated, underscoring synchronized performance across all business lines.