Net Income Growth
Morgan Stanley's net income grew 25.9% year-over-year to $16.86B in FY2025, up from $13.39B in the prior year, reflecting strong earnings momentum across the firm's business segments.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
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AI Takeaway
Morgan Stanley delivered a strong FY2025 with net income surging 25.9% to $16.86B and diluted EPS rising 28.4% to $10.21, driven by robust business performance, though operating cash flow turned sharply negative at -$17.89B reflecting significant balance sheet activity.
EPS (Diluted)
$10.21
+28.43% YoY
Source: SEC XBRL
Morgan Stanley (MS) used $17.89B of cash in operations in FY2025.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.46 | 3.03 | Beat +14.1% |
| Mar 2026 | 3.43 | 3.09 | Beat +10.9% |
| Dec 2025This filing | 2.68 | 2.51 | Beat +6.8% |
| Sep 2025 | 2.80 | 2.17 | Beat +29.3% |
Reported EPS of $2.68 versus the $2.51 analyst consensus — a +6.8% beat for Dec 2025.
Compiled by AI from this SEC filing
Morgan Stanley's net income grew 25.9% year-over-year to $16.86B in FY2025, up from $13.39B in the prior year, reflecting strong earnings momentum across the firm's business segments.
Source: 10-K Income Statement
Total assets expanded 16.9% to $1.42T, while long-term debt increased 20.2% to $341.68B, indicating significant balance sheet growth likely tied to trading inventory, client financing, and capital markets activity.
Source: 10-K Balance Sheet
Financing cash flows rose 44.9% to $67.76B, suggesting substantial debt issuance or other capital-raising activities that helped fund the firm's expanded balance sheet and investing activities.
Source: 10-K Cash Flow Statement
Operating cash flow swung sharply negative to -$17.89B from +$1.36B in the prior year, a common occurrence for large financial institutions when trading assets and client-related balances expand significantly within the period.
Source: 10-K Cash Flow Statement
Morgan Stanley paid $6.59B in dividends in FY2025, up 7.4% from $6.14B in the prior year, demonstrating continued commitment to returning capital to shareholders even amid balance sheet expansion.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Morgan Stanley's debt-to-equity ratio stands at an elevated 11.71x, reflecting the inherent leverage of large financial institutions. Long-term debt grew 20.2% to $341.68B in FY2025, increasing the firm's sensitivity to interest rate changes and credit market conditions. A deterioration in credit markets or rising funding costs could pressure profitability.
Source: 10-K Balance Sheet
Operating cash flow turned sharply negative at -$17.89B in FY2025, compared to +$1.36B in the prior year, a swing of over $19B. While this can reflect normal trading and client balance fluctuations for a large broker-dealer, sustained negative operating cash flows could signal liquidity pressure if not offset by financing activities.
Source: 10-K Cash Flow Statement
Total assets grew 16.9% to $1.42T, with liabilities growing at a faster pace of 17.8% to $1.31T, compressing the equity cushion relative to total assets. This rapid balance sheet expansion increases exposure to market dislocations or sudden asset devaluations.
Source: 10-K Balance Sheet
As a major financial institution with $1.42T in total assets and significant trading operations, Morgan Stanley is highly sensitive to interest rate movements and capital market volatility. Adverse shifts in rates or market conditions could negatively impact net interest income, trading revenues, and asset valuations.
Source: 10-K Balance Sheet
Stockholders' equity grew only 6.8% to $111.63B while total assets grew 16.9%, meaning equity as a proportion of total assets declined. ROA remains thin at approximately 1.19%, which is typical for large banks but leaves limited buffer against unexpected losses at scale.
Source: 10-K Balance Sheet & Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Income $B | 16.86 $B | 13.39 $B | +25.92% |
EPS (Basic) $ | 10.32 $ | 8.04 $ | +28.36% |
EPS (Diluted) $ | 10.21 $ | 7.95 $ | +28.43% |
Answers draw on this SEC filing and the data on this page
Morgan Stanley posted strong Q2 FY2026 results with pre-tax income of $7.3 billion and a 20.7% ROE, driven by robust equity trading and wealth management growth.
Morgan Stanley delivered a strong Q1 FY2026, with net income surging 29.0% year-over-year to $5.57B and diluted EPS rising 31.9% to $3.43, driven by significant balance sheet expansion and improved cash flow generation.
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