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Morgan Stanley (MS) is moving higher after reporting its Q4 results this morning. The company delivered a sizable EPS beat, while revenue increased 10.3% yr/yr to $17.9 bln, which was in line with expectations. The results reflect continued broad-based strength across the firm, particularly in Investment Banking and Wealth Management.

• Institutional Securities revenue increased 9% yr/yr to $7.9 bln. Investment Banking revenue jumped 47% yr/yr to $2.4 bln, driven by a 45% increase in advisory to $1.1 bln, crossing $1 bln for its second-strongest quarter ever, an 8.5% increase in equity underwriting, and a 92% surge in fixed income underwriting to a record $785 mln.
• The results reflected healthier capital markets conditions, with advisory benefiting from higher completed M&A and underwriting supported by stronger issuance and IPO/convertible activity. MS's IB results also outperformed many peers this quarter, including Citi (C) up 38%, Jefferies (JEF) up 24%, and JPMorgan (JPM) down 2%.
• Equity trading revenue increased 10% yr/yr to $3.6 bln, reflecting strong client activity across businesses and regions and higher prime brokerage client balances that supported financing. Fixed Income revenue fell 9% to $1.7 bln, mainly due to softer commodities results and weaker FX performance amid lower volatility.
• Wealth Management remained a steady driver, with net revenues up 13% yr/yr to $8.4 bln. Growth was flow-driven, with $122.3 bln of net new assets and $45.6 bln of fee-based flows. Asset management revenues increased 14% yr/yr to $5.0 bln.
• MS said the U.S. economy remained resilient and that capital markets are kicking in on supportive fiscal and easier monetary tailwinds. It expects that mix to persist in 2026, while noting geopolitical swirl, ambulant markets, and elevated asset prices as reasons for caution.

Briefing.com Analyst Insight

After a standout Q3, Morgan Stanley followed with another strong Q4, reflecting broad-based strength across the firm. Investment Banking remained a bright spot and outpaced many peers, while Wealth Management continued to provide a steady, flow-driven underpinning. Management struck a constructive 2026 tone, saying pipelines remain healthy and activity is improving as corporates and sponsors lean back into M&A and capital raising, with a reopening IPO market adding opportunity. In Wealth, client engagement stayed strong and management expects net interest income to be fairly steady near term and improve as the year progresses. With the U.S. economy still described as resilient, MS appears well positioned, though geopolitical uncertainty and elevated asset prices remain factors to monitor.