Equity trading revenue served as the primary engine for the bank’s performance, climbing to $5.8 billion—a 41% increase compared to the same period last year. This surge mirrors the momentum seen at Goldman Sachs, where similar trading activity bolstered quarterly results. While equity markets thrived, fixed-income trading faced headwinds, slipping 7.3% to $2.01 billion, a decline consistent with broader industry trends.

Investment banking revenue bucked a wider market slowdown, rising 2% to $2.16 billion. Even as global deal value dipped below the $1 trillion threshold for the first time in over a year, Morgan Stanley maintained its footprint by advising on major transactions, including Uber’s $14.8 billion acquisition of Delivery Hero and GE Aerospace’s $11.75 billion purchase of Consolidated Precision Products. Looking ahead, the bank has secured key underwriting roles for highly anticipated IPOs from artificial intelligence leaders Anthropic and OpenAI. Despite a volatile quarter for U.S. bank stocks driven by rising Treasury yields, Morgan Stanley shares have gained roughly 5.1% in 2026.