Why Is Morgan Stanley (MS) Stock Rising Sharply Today

Morgan Stanley Surges After Beating Earnings Forecasts

Morgan Stanley (NYSE:MS) saw its stock climb 5.7% during afternoon trading following the release of its fourth-quarter 2025 financial results, which exceeded Wall Street’s predictions.

The company reported earnings per share of $2.68, up from $2.22 a year earlier and ahead of the anticipated $2.45. Revenue reached $17.89 billion, representing a 10.3% increase year-over-year and surpassing the consensus estimate of $17.66 billion. These strong results were largely attributed to robust performance in the Institutional Securities division and a more favorable efficiency ratio, an important indicator of bank profitability.

Market Reaction and Recent Performance

Historically, Morgan Stanley’s stock has shown limited volatility, with only five instances of moves exceeding 5% over the past year. Today’s notable increase suggests investors view the latest earnings as significant, though it may not fundamentally alter the market’s overall outlook on the company.

One of the most substantial stock movements in the last year occurred three months ago, when shares rose 5% after the company posted outstanding third-quarter results that outperformed analyst expectations on both revenue and earnings.

During that quarter, Morgan Stanley reported revenue of $18.22 billion, up 18.5% from the previous year and 9.2% above Wall Street’s projections. Earnings per share reached $2.80, marking a nearly 49% jump year-over-year and easily beating the expected $2.11. The firm also improved its efficiency ratio to 67%, a notable improvement from the prior year and better than analysts had forecast, highlighting effective cost management.

Since the start of the year, Morgan Stanley’s stock has risen 5.4%, reaching a new 52-week high at $191.75 per share. An investor who purchased $1,000 worth of Morgan Stanley shares five years ago would now see that investment grow to $2,549.

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