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Morgan Stanley (MS) Beats Estimates with $20.34B in Revenue
Morgan Stanley (MS) reported third-quarter earnings per share of $3.03, surpassing the LSEG estimate of $2.91. The company's revenue also exceeded expectations, at $20.34 billion compared to the $19.95 billion estimate. Profit increased by 6.5% to $4.91 billion. These results were driven by significant growth in the firm's equities trading division, which saw a 41% revenue increase to $5.8 billion, outperforming StreetAccount's estimate by $909 million. Despite this, fixed income trading revenue fell 7% to $2.01 billion, approximately $260 million below expectations, while investment banking revenue increased slightly by 2% to $2.16 billion, which was $110 million below estimates. CEO Ted Pick highlighted Asia as a key area of strength for the equities division. Shares of Morgan Stanley dropped less than 1% in premarket trading. Analysts are keen to hear CEO Ted Pick's outlook on mergers and IPOs for the rest of the year, particularly given rising interest rates. These results are important as they demonstrate Morgan Stanley's resilience in equities trading, potentially offsetting weaker performance in other divisions.
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Goldman Sachs (GS) Surpasses Revenue Expectations With $18.68 Billion
Goldman Sachs (GS) reported a significant revenue beat for the third quarter, posting $18.68 billion in net revenue. This figure exceeded the LSEG estimate by nearly $2 billion. The robust performance was largely driven by equities trading, which saw a revenue surge of 72% year-over-year to $6.44 billion, surpassing expectations by approximately $1.42 billion. Investment banking and asset and wealth management also contributed to the strong results, with revenues of $3.22 billion and $5.05 billion, respectively, both beating estimates. Other banks such as JPMorgan Chase highlighted increased net interest income guidance to $106.2 billion for 2026, indicating confidence in future profitability. However, JPMorgan faced challenges with fixed income trading underperforming at $5.4 billion, missing expectations by $550 million and experiencing rising operational expenses. For ordinary investors, the significant revenue overperformance by Goldman Sachs could reflect strength in the equities market and investment banking, providing insight into sector health and potential economic resilience.
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