Highlights

  • Morgan Stanley shares climbed close to 6% after the release of fourth-quarter and full-year results.
  • The company reported revenue and profit figures above analyst expectations for the quarter.
  • All three business segments posted year-on-year revenue growth in Q4.

Shares of Morgan Stanley (NYSE:MS) advanced sharply on Thursday, rising nearly 6% in intraday trading after the financial services firm released its fourth-quarter and full-year 2025 results. The stock reaction followed disclosures showing that the company exceeded analyst forecasts on both revenue and profitability for the quarter.

The earnings release came during an active reporting period for banks and financial services firms, with Morgan Stanley’s update drawing attention due to the scale of its quarterly outperformance relative to market expectations.

Fourth-Quarter Results Exceed Estimates

For the fourth quarter of 2025, Morgan Stanley reported net revenue of USD 17.89 billion, representing a 10% increase compared with the same period a year earlier. Net income under generally accepted accounting principles rose 19% year-on-year to USD 4.4 billion, translating to earnings of USD 2.68 per share.

These figures exceeded average analyst projections. Market expectations had pointed to revenue of approximately USD 17.72 billion and GAAP earnings of USD 2.41 per share, according to consensus estimates referenced alongside the results.

Segment Performance in Focus

The quarterly improvement was reflected across all three of Morgan Stanley’s operating segments. Institutional Securities reported net revenue growth of 9% year-on-year, reaching just over USD 7.9 billion during the quarter. The Wealth Management division recorded a larger percentage increase, with revenue rising 13% to USD 8.4 billion.

The Investment Management segment also contributed to overall growth, posting a 5% increase in net revenue to USD 1.7 billion for the quarter. Together, the segment results highlighted broad-based gains rather than reliance on a single business line.

Market Reaction to Full-Year Disclosure

Alongside quarterly data, Morgan Stanley also released its final full-year figures for 2025. While the stock’s movement on the day was driven primarily by the fourth-quarter performance, the full-year update provided additional context for the market response.

In mid-session trading following the announcement, Morgan Stanley shares were changing hands at around USD 191.23, up USD 10.45, representing a gain of approximately 5.78% on the day. The price move reflected how the market processed the earnings figures relative to expectations, as well as the company’s reported momentum across its core operating segments.

The results marked the conclusion of Morgan Stanley’s 2025 financial reporting cycle, closing the year with quarterly figures that differed notably from consensus forecasts.

MS closed at USD 191.23, up 5.78% on Thursday.