Morgan Stanley delivered a solid fourth quarter of 2025, with revenue of $29.99 billion, net income of $4.40 billion and diluted earnings per share of $2.67 for the quarter. The quarter shows a notable YoY improvement in profitability metrics, driven by a robust gross profit of $17.87 billion and an operating income of $5.76 billion, translating to an operating margin of approximately 19.2% and a net income margin of 14.66%. Revenue was up year-over-year by about 15.4% but declined modestly versus the prior quarter by ~0.2%, signaling a maturation in market activity following a strong prior-year period.
Over the trailing four quarters, Morgan Stanley generated approximately $116.11 billion in revenue and about $17.94 billion of net income, indicating a trailing net margin near 15.5% and a stable profitability trajectory despite cyclical headwinds in capital markets. The company continues to benefit from its diversified business mix—Institutional Securities, Wealth Management, and Investment Management—which provides fee-based revenue and downside mitigation when trading volumes soften. EBITDA for the quarter was $6.845 billion, underscoring the firm’s ability to convert revenue into cash earnings amid ongoing expense discipline.
Management commentary, where available, underscores a focus on disciplined cost management, balance-sheet strength, and the strategic emphasis on wealth and asset management franchises as growth engines. While detailed forward targets were not disclosed in the provided data, the 2025 quarterly cadence suggests Morgan Stanley remains positioned to navigate a range of macro scenarios, supported by a diversified client base and a scalable platform across geographies.