Morgan Stanley Smashes Q1 Estimates on Trading Surge, ROE Soars to 20%

Morgan Stanley (NYSE:MS) delivered a blowout first quarter, with profits and revenue exceeding analyst projections, fueled by a standout performance in its equities trading division. However, the company’s shares fell around 1% in pre-market today.

The Wall Street bank posted earnings of $2.60 per share, handily beating the $2.26 consensus. Revenue reached $17.7 billion, topping expectations of $16.76 billion.

Equities sales and trading emerged as the key driver, raking in $4.13 billion—far surpassing the $3.42 billion forecast. This helped offset a modest miss in wealth management revenue, which came in at $7.3 billion versus the anticipated $7.44 billion.

Profitability metrics were stellar, with return on equity hitting 20% and return on tangible equity soaring to 37%, both significantly above estimates. The results reflect Morgan Stanley’s ability to capitalize on market volatility and reinforce its strength across capital markets, even as softer wealth management trends created a minor drag.