KabuDo

NYSE: MS · Investment Banking & Brokerage

Morgan Stanley

Morgan Stanley, based in New York, is a global financial services firm with three businesses: Institutional Securities (investment banking, equity and fixed income sales and trading; $33,080 million of 2025 net revenues), Wealth Management (financial advice and brokerage for individuals, including E*TRADE; $31,754 million) and Investment Management (including Eaton Vance and Parametric; $6,525 million). 2025 net revenues reached a record $70,645 million and net income $16,861 million, with earnings applicable to common shareholders of $16,249 million. About three-quarters of revenues are earned in the Americas. The firm employs about 83,000 people, reauthorized a $20 billion multi-year buyback in July 2025 and raised its quarterly dividend to $1.15 in 2026. Book value per common share was $64.37 at end-2025.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 30, 2026 12:57 (SEC EDGAR) · Source 10-K filed: February 19, 2026

Built on10-K FY2025 · filed 2026-02-1910-Q (quarter ended 2026-09-30) · filed 2026-11-05Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
7.7%

Higher than 43% of 44 financial companies

Average yearly growth over the years shown

Net margin
23.9%

Higher than 69% of 45 financial companies

Latest fiscal year (FY2025)

Return on equity
15.6%

Higher than 62% of 45 financial companies

Latest fiscal year (FY2025)

Equity ratio
7.9%

Higher than 22% of 45 financial companies

Equity ÷ total assets

Cash conversion
-1.06x

Higher than 7% of 44 financial companies

Operating cash flow ÷ net income

Dividend raises
5 of 5

Years the dividend per share rose, of the last 5

P/E today
14.6x

Latest close 2026-11-04; trailing 12 months to 2026-09-30

Beta
1.32

Above 1 = moves more than the market

Each marker shows where this company sits among the financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$188.79close on 2026-11-04

Market cap$298.82B

P/E today
14.6x

At FY2025 year-end: 17.4x

Earnings: trailing 12 months to 2026-09-30

P/B today
2.9x

At FY2025 year-end: 2.8x

Book value at FY2025 year-end

EV/EBITDA today
—

At FY2025 year-end: —

EBITDA for FY2025

FCF yield today
—

At FY2025 year-end: 0.0%

Free cash flow for FY2025

Dividend yield today
2.0%

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Sep 30, 2026.

  • Revenue↑ +11.6%$18.22B → $20.34B (vs. a year earlier)
  • Net income↑ +6.5%$4.61B → $4.91B (vs. a year earlier)
  • Diluted EPS↑ +8.2%$2.80 → $3.03 (vs. a year earlier)
  • Cash↓ −13.4%$160.14B → $138.67B (vs. previous quarter-end)
  • Long-term debt↓ −1.3%$383.16B → $378.09B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Oct 14, 2026.

Key changes

  • Wealth Management record net revenues of $9.1B. Source sentence
    Wealth Management delivered record net revenues of $9.1 billion on robust asset management fees and higher net interest income, generating a pre-tax margin of 30.4%. 14 The business attracted net new assets of $232 billion and fee-based flows of $80 billion for the quarter. 8,9
  • Institutional Securities net revenues $10.0B. Source sentence
    Institutional Securities reported net revenues of $10.0 billion reflecting strong performance in Equity driven by client engagement and strength in Advisory.
  • Total client assets $10.5T. Source sentence
    Across Wealth and Investment Management, total client assets grew to $10.5 trillion, demonstrating the scale of our platform and the strength of our franchise.

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
MORGAN STANLEY
Headquarters
NEW YORK, NY
Incorporated in
Delaware
Fiscal year end
12/31
Exchange & ticker
NYSE: MS
Industry
Investment Banking & Brokerage
CIK
895421

Workforce (as of FY2025 year-end)

  • Employees

    83,000

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q4 FY2026

Quarter end: December 2026. In past years, Q4 results were released 15 days after quarter end (Jan 15, 2026). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around December 31.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 14–15 days after quarter end over the last 4 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q3 FY2026Sep 30, 2026Oct 14, 2026 (+14 days)Nov 5, 2026 10-Q (+36 days)
Q2 FY2026Jun 30, 2026Jul 15, 2026 (+15 days)Aug 4, 2026 10-Q (+35 days)
Q1 FY2026Mar 31, 2026Apr 15, 2026 (+15 days)May 5, 2026 10-Q (+35 days)
Q4 FY2025Dec 31, 2025Jan 15, 2026 (+15 days)Feb 19, 2026 10-K (+50 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Institutional Securities

    Investment banking

    Advisory and equity and debt underwriting.

  • Institutional Securities

    Equity and fixed income

    Sales, trading, financing and market-making.

  • Wealth Management

    Wealth management and E*TRADE

    Financial advisor services, self-directed brokerage, workplace solutions and lending.

  • Investment Management

    Asset management

    Active, alternative and customized portfolios incl. Eaton Vance and Parametric.

From the Form 10-K, FY2025.

U.S. and worldwide share of flagship products/services

Morgan Stanley does not state market share percentages in its 10-K.

Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)

07

Recent strategic focusSite analysis

Recent developments.

  1. Dividend raise

    Quarterly dividend to rise to $1.15 from $1.00 per share (announced June 24, 2026).

    Source: Form 8-K (2026-06-24) — Item 8.01

  2. Buybacks

    Repurchased $4,585M of common stock in 2025 under a $20B program.

    Source: Form 10-K (FY2025)

  3. Leadership

    Ted Pick took on the additional role of Chairman for 2025.

    Source: Proxy statement (2026)

M&A spend (6-year total)

$2.65B

Latest year: $0

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M

  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19

08

Key figures at a glanceFrom SEC data

FY2020–FY2025, 6 years.

Total revenue (FY2025)

$70.65B

As reported in the 10-K

Revenue CAGR (5 years)

+7.7%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($70,645M ÷ $48,757M) ^ (1÷5) − 1 = 7.7%

termsCAGR · ^ (exponent) · Revenue (net sales)

ROE (FY2025)

15.6%▲favorable

6-year average: 12.3%

As reported in the 10-K

P/B (FY2025 end)

2.76x

formulafiscal year-end closing price ÷ book value per share

e.g.$177.53 ÷ $64.37 = 2.76x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

  • ▲

    Revenue grew +7.7% a year over 5 years (strong growth)

    From $48.76B in FY2020 to $70.65B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    ROE averaged 12.3% over 6 years (latest: 15.6%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Earns fees, commissions and trading revenue from corporate, institutional and government clients, asset-based fees and net interest income from wealth clients, and management fees on client assets.

How money and goods flow at Morgan Stanley
  1. 01 what it draws on

    Inputs & resources

    • About 83,000 employees
    • Client assets and deposits
    • Capital and funding from borrowings
  2. 02 what it does

    Activities

    • Institutional Securities: investment banking, equity and fixed income
    • Wealth Management: advisor-led and self-directed (E*TRADE) brokerage and lending
    • Investment Management: active, alternatives and customized portfolios
  3. 03 who it serves

    Customers

    • Corporations, governments and institutions
    • Individuals and families
    • Institutional investors and fund clients
  4. 04 how money comes in

    How it earns

    • Institutional Securities $33,080M (2025)
    • Wealth Management $31,754M
    • Investment Management $6,525M

How the business makes money

  • Net revenues by region 2025: Americas $52,897M, Asia $9,420M, EMEA $8,328M.
  • Repurchased $4.6B of common stock in 2025.
  • Book value per common share $64.37; tangible $50.00 at end-2025.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

Morgan Stanley’s capital is set by the Federal Reserve’s stress capital buffer.

  • Approvals & licenses

    Bank capital and supervision

    The Federal Reserve expects its 4.3% stress capital buffer to apply until October 1, 2027.

    Constrains the businessTouches: Activities

    Source: Form 10-K (FY2025)

  • Trade & export rules

    Sanctions and AML rules

    Subject to sanctions programs administered by the U.S. government; maintains AML, sanctions and political-activities compliance programs.

    Constrains the businessTouches: Activities

    Source: Form 10-K (FY2025)

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Institutional Securities

    33,080 (46%)
  • Wealth Management

    31,754 (44%)
  • Investment Management

    6,525 (9%)

Source: Form 10-K (FY2025) Segment net revenues; total $70,645M after intersegment eliminations (−$714M).

10

Where it earnsSite analysis

Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.

Largest market (FY2025)

Americas — 75% of revenue

Revenue by country / region (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Americas

    52,897 (75%)
  • Asia

    9,420 (13%)
  • EMEA

    8,328 (12%)

Source: Form 10-K (FY2025) Net revenues by region.

11

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Corporations, governments, institutions and individuals.

Named by the company

No customer concentration is disclosed.

Suppliers

Funding markets and counterparties.

Named by the company

No material supplier is named.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

Morgan Stanley competes with commercial, investment and regional banks, broker-dealers, private banks, RIAs, digital platforms, asset managers and fintechs; the 10-K does not name them.

Competitors named in the 10-K

No competitor is named in the 10-K.

Peer group the company chose

Compensation comparators, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Banks used as CEO pay comparators in the 2026 proxy statement.

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Total revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19

Profit over time (operating → net)

Unit: $M

  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19

Line itemFY2020In next year’s 10-KFY2021In next year’s 10-KFY2022In next year’s 10-KFY2023In next year’s 10-KFY2024In next year’s 10-KFY202510-K on EDGAR ↗
Income statement ($M)
Revenue48,75759,75553,66854,14361,76170,645
Pretax income14,41819,66814,08911,81317,59621,954
Net income (attributable)10,99615,03411,0299,08713,39016,861
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—22.6%-10.2%0.9%14.1%14.4%
Net margincalcnet income attributable to the company ÷ revenue × 10022.6%25.2%20.6%16.8%21.7%23.9%
Balance sheet ($M)
Total assets1,115,8621,188,1401,180,2311,193,6931,215,0711,420,270
Total equity103,149106,598101,23199,982105,428112,652
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable213,388227,363233,867260,544284,307341,681
Equity ratio9.1%8.9%8.5%8.3%8.6%7.9%
ROE10.8%14.5%10.7%9.1%13.2%15.6%
Cash flow ($M)
Operating CF-25,23133,971-6,397-33,5361,362-17,889
Investing CF-37,898-49,897-11,632-3,084-29,460-46,779
Financing CF83,78441,54722,714-2,72646,75667,758
Cash and equivalents105,654127,725128,12789,232105,386111,695
Per share & other
EPS ($)6.468.036.155.187.9510.21
BVPS ($)51.1355.1254.5555.5058.9864.37
Dividend per share ($)1.402.102.953.253.553.85
Payout ratiocalcdividend per share ÷ diluted EPS × 10021.7%26.2%48.0%62.7%44.7%37.7%
P/E (x)10.612.213.818.015.817.4
P/B (x)calcfiscal year-end closing price ÷ book value per share1.341.781.561.682.132.76

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueNet incomeDiluted EPS
2026-09-30$20.34B+11.6%$4.91B+6.5%$3.03
2026-06-30$21.35B+27.1%$5.58B+57.7%$3.46
2026-03-31$20.58B+16.0%$5.57B+29.0%$3.43
2025-12-31 †$17.89B+10.3%$4.4B+18.4%—
2025-09-30$18.22B$4.61B$2.80
2025-06-30$16.79B$3.54B$2.13
2025-03-31$17.74B$4.32B$2.60
2024-12-31 †$16.22B$3.71B—

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

15

Measures that fit this businessFrom SEC data

ROIC and free cash flow don’t suit an investment bank or broker, so these are the usual yardsticks instead.

CET1 capital ratio
15.0%

Standardized, December 31, 2025

As stated by the company: Form 10-K (FY2025)

MeasureFY2020FY2021FY2022FY2023FY2024FY2025
Return on equityNet income ÷ stockholders’ equity.10.8%14.5%10.7%9.1%13.2%15.6%
Net marginNet income ÷ revenue.22.6%25.2%20.6%16.8%21.7%23.9%
Net interest income ÷ average assetsSpread earned on the balance sheet; a stand-in for net interest margin, which uses earning assets.—0.7%0.8%0.7%0.7%0.8%
Noninterest expense ÷ revenueThe efficiency ratio. Lower means less cost for each dollar of revenue.68.9%67.1%73.2%77.2%71.1%68.4%
Equity ÷ total assetsThe accounting cushion. Regulatory capital ratios are listed separately above when the filing states them.9.1%8.9%8.5%8.3%8.6%7.9%

Computed from SEC XBRL figures. A dash means the company doesn’t tag that figure or the result fell outside a plausible range. Tagging differs between filers, so check the filing before comparing two companies closely.

16

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

Banks, insurers, and similar financial companies aren’t compared this way, since deposits/policies are the business itself and debt can’t be cleanly separated from operating capital.

17

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Not applied to banks, insurers, and similar financial companies: their operating cash flow includes deposits or premiums held for customers, so it isn’t free cash flow available to investors.

18

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

Financial companies’ operating cash flow behaves differently from an operating company’s, so this analysis doesn’t apply.

19

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
85.9%
Directors & officers (shares)
<1%
Everyone else (est.)
14.1%

individuals and other non-13F holders

Directors & officers (voting power)
<1%

no separate voting figure; shown as shares

Institutional-ownership rank
252 of 416

1 = most institutional; 60% of covered companies have more

Beta (adjusted)
1.32

above 1 = swings more than the market

  • 1,348.7M shares reported by 2,731 13F filers ÷ 1,570.6M shares outstanding on 2026-07-31. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-02 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-31)

20

Strengths & weaknessesSite analysis

Strengths

  1. 1. Record revenues

    Net revenues rose from $54,143M (2023) to $70,645M (2025).

    Evidence: Form 10-K (FY2025)

  2. 2. Wealth franchise

    Wealth Management net revenues of $31,754M in 2025 provide steadier fee and interest income.

    Evidence: Form 10-K (FY2025)

  3. 3. Capital return

    $20B multi-year buyback reauthorized in July 2025; quarterly dividend raised to $1.15 in 2026.

    Evidence: Form 8-K (2026-06-24) — Item 8.01

Weaknesses

  1. 1. Market sensitivity

    Institutional Securities revenue depends on deal and trading activity.

    Evidence: Form 10-K (FY2025)

  2. 2. Large balance sheet

    Total assets of $1.42 trillion and borrowings of $349B at end-2025.

    Evidence: Form 10-K (FY2025)

  3. 3. Litigation exposure

    Cash sweep class actions and antitrust suits are pending.

    Evidence: Form 10-K (FY2025)

21

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

17.4x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

2.17%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

38%

Dividends per share ÷ diluted EPS

  1. 1. Wealth-led model

    Wealth and Investment Management provide recurring revenue.

    What has to hold
    Client assets keep growing.
    The other side
    Market downturns cut fees.

    Evidence: Form 10-K (FY2025)

  2. 2. Capital return

    Growing dividend and buybacks.

    What has to hold
    Capital requirements stay manageable.
    The other side
    Regulatory changes.

    Evidence: Form 10-K (FY2025)

Revenue is net revenues (after interest expense); book value per share is per common share as reported.

22

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

For an insurer or bank, debt-coverage ratios like these don’t describe its ability to absorb losses — that depends on its capital, reserves, and investment portfolio, which are covered in part 3 below.

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
Revenue-10.2% in FY2022 ($59.76B → $53.67B)Yes, by FY2024
Net income-26.6% in FY2022 ($15.03B → $11.03B)Yes, by FY2025

Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Profitable every year

    Net income stayed above $9B every year 2020–2025.

    Source: Form 10-K (FY2025)

24

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
1
Med
5
234
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Demand & macro

    Market conditions

    Company disclosure (summarized from the 10-K)
    Volatile markets affect trading, banking and asset-based fees.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact High / Likelihood High
  2. 2Law & regulation

    Bank regulation and capital

    Company disclosure (summarized from the 10-K)
    Capital, stress test and other regulatory requirements.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  3. 3Competition & technology shift

    Competition

    Company disclosure (summarized from the 10-K)
    Competes with banks, broker-dealers, RIAs, digital platforms, asset managers and fintechs.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  4. 4FX & interest rates

    Interest rates

    Company disclosure (summarized from the 10-K)
    Net interest income and sweep deposits depend on rates.
    Company’s stated mitigation
    As part of our asset/liability management strategy, when appropriate, we use derivatives to make adjustments to the interest rate risk profile of our borrowings (see Notes 6 and 13 to the financial statements).
    This site’s assessment
    Impact Med / Likelihood High
  5. 5Information security

    Cyber risk

    Company disclosure (summarized from the 10-K)
    Cyberattacks on systems and client data.
    Company’s stated mitigation
    Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse.
    This site’s assessment
    Impact Med / Likelihood Med

25

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (8)

  • Our businesses and operations may also be adversely impacted by inadequate data quality management processes, including failure to meet defined expectations related to the appropriate completeness, timeliness and accuracy of data in reports, models or other data deliverables.

  • • We reported net revenues of $70.6 billion in 2025, which increased by 14% compared with $61.8 billion in 2024. Read more

    Net income applicable to Morgan Stanley was $16.9 billion in 2025, which increased by 26% compared with $13.4 billion in 2024. Diluted earnings per common share was $10.21 in 2025, which increased by 28% compared with $7.95 in 2024.

  • In 2025, as a result of a March workforce management action, we recognized severance costs of $144 million, included in Compensation and benefits expense. Read more

    The workforce management action was related to performance management and the alignment of our workforce to our business needs, rather than a change in strategy or exit of businesses. The workforce management action occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. We recorded severance costs of $78 million in the Institutional Securities business segment, $50 million in the Wealth Management business segment, and $16 million in the Investment Management business segment. These costs were incurred across all regions, with the majority in the Americas.

  • • Institutional Securities net revenues of $33,080 million in 2025 increased 18% from the prior year, primarily reflecting higher results in Equity driven by increased client activity and higher average client balances, and higher underwriting and Advisory revenues within Investment Banking.

  • The economic environment was resilient in 2025, as client and investor confidence and market sentiment improved and markets rebounded from early-year uncertainty. Read more

    The year was characterized by increased momentum in capital markets activity and lower interest rates. The rate of economic growth, ongoing geopolitical uncertainty, as well as the timing and pace of any further central bank actions have impacted and could continue to impact capital markets and our businesses, as discussed further in “Business Segments” herein.

  • Income before provision for income taxes 11,237 8,749 4,476 28 % 95 %

  • Net income applicable to Morgan Stanley $ 8,650 $ 6,666 $ 3,453 30 % 93 %

  • Net revenues of $7,619 million in 2025 increased 23% compared with the prior year, reflecting increases across regions and businesses, particularly in underwriting revenues.

No longer in the text (4)

  • We may be responsible for representations and warranties associated with commercial and residential real estate loans and may incur losses in excess of our reserves.

  • We originate loans secured by commercial and residential properties. Read more

    Further, we securitize and trade in a wide range of commercial and residential real estate and real estate-related assets and products. In connection with these activities, we have provided, or otherwise agreed to be responsible for, certain representations and warranties. Under certain circumstances, we may be required to repurchase such assets or make other payments related to such assets if such representations and warranties were breached, and may incur losses as a result. We have also made representations and warranties in connection with our role as an originator of certain loans that we securitized in CMBS and RMBS. For additional information, see Note 14 to the financial statements.

  • • The Firm expense efficiency ratio was 71% compared to 77% in the prior year, reflecting higher revenues and expense discipline. Read more

    In the prior year, the ratio was negatively impacted by specific severance costs of $353 million, integration-related expenses of $293 million, an FDIC special assessment of $286 million and higher legal expenses related to a $249 million settlement in connection with resolutions of investigations into the Firm’s blocks business. (See “Expenses” herein for more information).

  • • We reported net revenues of $61.8 billion in 2024, which increased by 14% compared with $54.1 billion in 2023. Read more

    Net income applicable to Morgan Stanley was $13.4 billion in 2024, which increased by 47% compared with $9.1 billion in 2023. Diluted earnings per common share was $7.95 in 2024, which increased by 53% compared with $5.18 in 2023.

144 more paragraphs differ; the filings below have the full text.

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 19, 2026 ↗ with the 10-K filed Feb 21, 2025 ↗.

26

What to watch going forwardSite analysis

  • Investment banking and trading activity.
  • Wealth Management net new assets and margins.
  • Cash sweep litigation outcome.

27

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 30, 2026 12:57 (SEC EDGAR) · Source 10-K filed: February 19, 2026

Built on10-K FY2025 · filed 2026-02-19Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Morgan Stanley’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.