Morgan Stanley Q3 profit hits $4.9bn on wealth gains and IPO inflows

Morgan Stanley net income applicable to the firm for the third quarter (Q3) of 2026 rose to $4.9bn, benefitting from gains in wealth management and IPO-related asset inflows.

This marked a 6.5% growth from the same period of 2025.

Net revenues for the quarter to September 2026 stood at $20.3bn, up 12% year on year.

The wealth management business posted net revenues of $9.1bn, up from $8.2bn in the corresponding quarter of 2025.

Inflows produced record net new assets of $232bn, with just over half originating from IPO-linked flows.

Fee-based flows totalled $80bn, inclusive of a new corporate retirement mandate, reflecting sustained activity within the Advisor-led channel.

Institutional Securities yielded net revenues of $10bn, higher than the $8.5bn registered twelve months prior.

Performance across the segment varied by business line: Equity net revenues climbed 41% and Investment Banking net revenues edged up 2%, whereas Fixed Income net revenues contracted 7%.

The quarterly figures also absorbed $105m in charge-offs linked to specific corporate and commercial real estate loans, which had been largely provisioned for in prior quarters.

In the investment management segment, net revenues contracted to $1.5bn from $1.7bn in the prior-year period.

Within that unit, asset management and related fees rose to $1.6bn from a year earlier, assisted by higher average AUM resulting from the combined effect of positive flows and higher market levels.

Capital distribution during the quarter included the buyback of $1.5bn of outstanding common stock under the firm’s share repurchase programme.

Morgan Stanley chairman and CEO Ted Pick said: “Across Wealth and Investment Management, total client assets grew to $10.5 trillion, demonstrating the scale of our platform and the strength of our franchise. We continue to invest for growth while delivering strong returns for shareholders.”