FY2026 EPS Forecast for Morgan Stanley Cut by Analyst

Morgan Stanley (NYSE:MS) – Investment analysts at Erste Group Bank decreased their FY2026 earnings estimates for Morgan Stanley in a report issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the financial services provider will earn $12.79 per share for the year, down from their prior estimate of $12.83. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Morgan Stanley’s current full-year earnings is $12.66 per share.

Morgan Stanley (NYSE:MS) last issued its earnings results on Wednesday, October 14th. The financial services provider reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.93 by $0.10. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm had revenue of $20.34 billion for the quarter, compared to analysts’ expectations of $19.93 billion. During the same quarter last year, the company earned $2.80 earnings per share. The firm’s revenue was up 11.6% compared to the same quarter last year.

Other equities research analysts have also issued reports about the stock. Wells Fargo & Company reduced their price objective on shares of Morgan Stanley from $240.00 to $223.00 and set an “equal weight” rating on the stock in a report on Friday, September 25th. Jefferies Financial Group upgraded shares of Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Citigroup lowered their target price on shares of Morgan Stanley from $235.00 to $210.00 and set a “neutral” rating for the company in a research note on Wednesday, September 30th. TD Cowen began coverage on Morgan Stanley in a report on Thursday, October 8th. They set a “hold” rating and a $210.00 price target for the company. Finally, Bank of America upped their price objective on Morgan Stanley from $225.00 to $250.00 and gave the stock a “buy” rating in a research report on Tuesday, July 7th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $219.43.

Morgan Stanley Stock Down 2.7%

Shares of Morgan Stanley stock opened at $181.65 on Tuesday. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.65. Morgan Stanley has a 52-week low of $152.80 and a 52-week high of $232.25. The company has a market capitalization of $286.51 billion, a P/E ratio of 15.09, a P/E/G ratio of 1.24 and a beta of 1.22. The company has a 50 day moving average of $205.75 and a 200 day moving average of $203.47.

Morgan Stanley declared that its board has initiated a stock buyback program on Wednesday, June 24th that allows the company to buy back $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 5.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Financiere des Professionnels Fonds d investissement inc. purchased a new position in Morgan Stanley during the first quarter worth about $8,854,000. Diversify Wealth Management LLC lifted its position in Morgan Stanley by 201.0% in the first quarter. Diversify Wealth Management LLC now owns 17,559 shares of the financial services provider’s stock valued at $2,890,000 after purchasing an additional 11,726 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Morgan Stanley by 10.9% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 294,047 shares of the financial services provider’s stock valued at $61,468,000 after purchasing an additional 28,877 shares in the last quarter. QRG Capital Management Inc. boosted its holdings in Morgan Stanley by 12.0% in the 2nd quarter. QRG Capital Management Inc. now owns 279,622 shares of the financial services provider’s stock valued at $58,452,000 after purchasing an additional 30,010 shares in the last quarter. Finally, California Public Employees Retirement System boosted its holdings in Morgan Stanley by 13.4% in the 1st quarter. California Public Employees Retirement System now owns 2,422,284 shares of the financial services provider’s stock valued at $398,635,000 after purchasing an additional 287,056 shares in the last quarter. Institutional investors and hedge funds own 84.19% of the company’s stock.

Morgan Stanley News Summary

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Morgan Stanley reported $3.03 in earnings per share versus the $2.93 consensus estimate, while revenue rose 11.6% year over year to $20.34 billion, above expectations of $19.93 billion. Net income attributable to the company increased 6% to approximately $4.9 billion. Morgan Stanley profit rises on equity trading strength
• Positive Sentiment: Equity trading and wealth management were key growth engines. Institutional Securities revenue reached approximately $10.0 billion, helped by a 41% increase in equity revenue. Wealth Management produced record revenue of $9.1 billion, added $232.4 billion in net new assets and reached $10.5 trillion in client assets. IPO-related inflows contributed significantly to the asset gathering. Morgan Stanley Cashes In on IPO Boom
• Positive Sentiment: Shareholder returns and capital remain supportive. Morgan Stanley declared a quarterly dividend of $1.15 and repurchased $1.54 billion of common stock. Its standardized CET1 capital ratio was 14.9%, providing capacity for continued capital returns. Morgan Stanley Reports Third-Quarter Revenue and EPS
• Neutral Sentiment: Management emphasized that artificial intelligence will enhance employees and client service rather than replace Morgan Stanley’s relationship-based advisory model. The firm is also exploring tokenized equities through its alternative trading system, potentially creating a longer-term technology opportunity.
• Negative Sentiment: The earnings beat may have been viewed as trading-driven and difficult to sustain. Fixed-income markets were weaker, while recent enthusiasm around mergers, acquisitions and IPO activity had cooled. Investors may be waiting for clearer evidence that elevated equity-trading revenue and IPO-related wealth inflows can persist.
• Negative Sentiment: A hotter-than-expected consumer inflation reading pushed Treasury yields higher and weighed on financial stocks. With Morgan Stanley trading at roughly 14.7 times earnings after a multiyear rally, the market appears to have demanded stronger forward guidance than the quarter’s headline results provided.

Morgan Stanley Company Profile

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.