Morgan Stanley reported fourth-quarter 2025 earnings with 21.8% returns on tangible common equity and 10.3% quarterly revenue growth. The firm’s $9.3 trillion in client assets is close to its $10 trillion target, with an efficiency ratio of 68.0% beating the 70.0% goal. Wealth management segment margins exceeded the firm’s 30.0% aspiration.

The bank is expected to outperform long-term targets through 2026, benefiting from fiscal and monetary stimulus, deregulatory tailwinds, and strong consumer spending. Morgan Stanley’s fair value estimate has been raised to $148 per share from $140 due to a stronger near-term outlook in investment banking and trading, driven by high asset prices and a solid economic backdrop.

Industrywide investment banking revenue is projected to grow by 11% in 2026, with a 28% increase in Morgan Stanley’s core equity capital markets vertical. Institutional trading is expected to grow by 2.2%, with a modest correction anticipated in 2028. Morningstar Equity Research originally published this analysis as a stock note. The author or authors do not own shares in any securities mentioned.

Read more at Morningstar: Morgan Stanley Earnings: Shares Priced for Perfection After Another Stellar Quarter