How much did Morgan Stanley's profit rise in Q2?

Morgan Stanley's profit increased 58% year-over-year in Q2 2026.

What drove Morgan Stanley's profit surge?

The surge was driven by strong trading and investment banking revenue, with investment banking revenue up 58%.

Did Morgan Stanley provide guidance for next quarter?

No specific numerical guidance was given, but the bank expects continued positive momentum.

How did Morgan Stanley's stock react to the earnings?

The stock was little changed in pre-market trading as results met expectations.

Morgan Stanley Q2 Profit Surges 58% on Trading, Dealmaking

Morgan Stanley's Q2 profit surged 58% year-over-year, fueled by strong trading and dealmaking. Investment banking revenue rose 58% to $2.44 billion.

Morgan Stanley (NYSE: MS) reported a 58% increase in second-quarter profit compared to the same period last year, driven by robust trading and investment banking activity. The results follow a string of strong earnings from other major banks, highlighting how market volatility and AI-driven investments have boosted Wall Street's biggest earners.

Key Financial Results

Metric	Q2 2026	YoY Change
Net Profit	—	+58%
Investment Banking Revenue	$2.44B	+58%

(Total revenue and EPS were not disclosed in the preliminary report.)

Highlights from the Statement

Morgan Stanley attributed the strong performance to increased trading activity in volatile markets and a rebound in advisory and underwriting fees. The bank noted sustained demand for investment banking services.

Guidance

The company did not provide specific numerical guidance for the next quarter but expressed confidence in continued momentum in dealmaking and trading.

Stock Impact

Morgan Stanley shares were little changed in pre-market trading, as the results were broadly in line with analyst expectations.

What This Means for Investors

Morgan Stanley's results reflect a strong operating environment for major investment banks, supported by market volatility and a pickup in M&A activity. However, investors should watch for any signs of an economic slowdown that could dampen dealmaking.