01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Morgan Stanley's (MS) 10-K filing for the fiscal year ended December 31, 2025, reported robust financial performance with net revenues of $70.6 billiona and net income applicable to Morgan Stanley of $16.9 billion.
This represents a significant increase from the prior year, driven by strong results across all its key business segments: Institutional Securities, Wealth Management, and Investment Management. The firm demonstrated improved expense efficiency, with an expense efficiency ratio of 68%b, and maintained a strong capital position with a Common Equity Tier 1 capital ratio of 15.0% and a Supplementary Leverage Ratio of 5.4%. Key drivers of this performance include a 18% increase in net revenues for Institutional Securities, largely due to strong performance in Equities and Investment Banking, and a 12% increase in Wealth Management net revenues, benefiting from higher asset management fees and transaction revenues.
Investment Management also saw an 11%c increase in net revenues, driven by higher average Assets Under Management. The firm's commitment to shareholder returns is evidenced by its strong Return on Equity (ROE) of 16.6% and Return on Tangible Common Equity (ROTCE) of 21.6%.
02—Key points
Key Highlights
- Morgan Stanley reported strong financial results for fiscal year 2025, with net revenues of $70.6 billion and net income of $16.9 billion.
- The firm achieved an impressive Return on Equity (ROE) of 16.6% and Return on Tangible Common Equity (ROTCE) of 21.6%, indicating effective capital utilization.
- Institutional Securities segment saw an 18% increase in net revenues, driven by strong performance in Equity and Investment Banking.
- Wealth Management segment reported a 12% increase in net revenues, benefiting from higher asset management revenues and client flows.
- Investment Management segment's net revenues grew by 11%, primarily due to increased Assets Under Management driven by higher market levels.
- Expense efficiency improved, with the expense efficiency ratio decreasing to 68% from 71% in the prior year.
- The firm maintained a strong capital position with a Common Equity Tier 1 capital ratio of 15.0% and a Supplementary Leverage Ratio of 5.4%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Net Income | $16.86B$13.39B | +25.9% |
| EPS (Basic) | $10.32$8.04 | +28.4% |
| EPS (Diluted) | $10.21$7.95 | +28.4% |
| Shares Outstanding (Basic) | 1.57B1.59B | −1.1% |
| Shares Outstanding (Diluted) | 1.59B1.61B | −1.2% |
05—Questions
Frequently Asked Questions
What was Morgan Stanley's overall financial performance in 2025?
Morgan Stanley reported strong financial results for fiscal year 2025, with net revenues reaching $70.6 billion and net income applicable to Morgan Stanley amounting to $16.9 billion, representing significant year-over-year growth.
How did the different business segments perform?
All three core segments performed well: Institutional Securities saw an 18% increase in net revenues due to strong Equity and Investment Banking performance; Wealth Management's net revenues grew 12% driven by higher asset management fees and client activity; and Investment Management's net revenues increased 11% due to higher average AUM.
What is the firm's capital position and profitability?
Morgan Stanley maintained a strong capital position with a Common Equity Tier 1 capital ratio of 15.0% and a Supplementary Leverage Ratio of 5.4%. Profitability metrics were also robust, with a Return on Equity (ROE) of 16.6% and a Return on Tangible Common Equity (ROTCE) of 21.6%.
How has the firm managed its expenses?
The firm improved its expense efficiency, with the expense efficiency ratio decreasing to 68% in 2025, down from 71% in the prior year, indicating effective cost management while continuing to invest in its businesses.
06—Continue