Record Q1 lifts Morgan Stanley (NYSE: MS) EPS to $3.43 and ROTCE 27.1%

Q: How did Morgan Stanley (MS) perform financially in Q1 2026?

Morgan Stanley reported net revenues of $20.6 billion and net income applicable to the firm of $5.6 billion in Q1 2026. Diluted EPS rose to $3.43 , up from $2.60 a year earlier, reflecting record revenues and significantly higher profitability.

Q: What were Morgan Stanley’s key profitability metrics for Q1 2026?

The firm delivered a return on equity of 21.0% and a return on tangible common equity of 27.1% in Q1 2026. Its pre-tax margin reached 34% , while the firm expense efficiency ratio improved to 65% , indicating strong operating leverage.

Q: How did Morgan Stanley’s business segments contribute to Q1 2026 results?

In Q1 2026, Institutional Securities generated net revenues of $10.7 billion, Wealth Management produced $8.5 billion, and Investment Management delivered $1.5 billion. Institutional Securities and Wealth Management both recorded strong year-over-year revenue growth and higher pre-tax income.

Q: What were the key client asset and flow trends in Morgan Stanley’s Wealth Management segment?

Wealth Management ended Q1 2026 with total client assets of $7.3 trillion . The business reported $118.4 billion of net new assets and $53.7 billion of fee-based asset flows , supported by higher markets, strong client activity, and continued lending and deposit growth.

Q: What capital and leverage ratios did Morgan Stanley report for Q1 2026?

At Q1 2026, Morgan Stanley’s standardized Common Equity Tier 1 capital ratio was 15.1% and the Tier 1 capital ratio was 16.8%. Under the advanced approach, the CET1 ratio was 16.0%, and the firm reported a supplementary leverage ratio of 5.0% .

Q: How much stock did Morgan Stanley repurchase and what dividend was declared for Q1 2026?

During Q1 2026, Morgan Stanley repurchased $1.75 billion of common stock , or 10 million shares at an average price of $169.15. The Board also declared a $1.00 quarterly dividend per share , payable on May 15, 2026 to shareholders of record on April 30, 2026.

Q: Did Morgan Stanley record any notable one-time costs in Q1 2026?

Yes. In Q1 2026, Morgan Stanley recognized $178 million of severance costs within compensation and benefits from a workforce management action affecting about 2% of its global workforce . These costs were spread across Institutional Securities, Wealth Management, and Investment Management.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Morgan Stanley reported a strong first quarter of 2026, with net revenues of $20.6 billion versus $17.7 billion a year earlier and net income applicable to the firm of $5.6 billion. Diluted EPS rose to $3.43 from $2.60, and return on tangible common equity reached 27.1%, reflecting record quarterly revenues and pre-tax income.

Institutional Securities generated record net revenues of $10.7 billion, driven by higher equity and fixed income trading and a 36% increase in investment banking revenues. Wealth Management produced record net revenues of $8.5 billion, supported by $118.4 billion of net new assets and strong fee-based flows.

The firm repurchased $1.75 billion of common stock in the quarter and declared a $1.00 quarterly dividend per share. The standardized Common Equity Tier 1 capital ratio stood at 15.1%, while the expense efficiency ratio improved to 65%. Results also included $178 million of severance costs from a workforce management action affecting about 2% of employees.

Positive

Exceptional earnings growth and profitability: Net revenues rose to $20.6 billion (up 16% year over year), diluted EPS increased to $3.43 from $2.60, and return on tangible common equity reached 27.1%, reflecting record quarterly revenues and pre-tax income.
Strong segment performance and client flows: Institutional Securities posted record $10.7 billion in net revenues, while Wealth Management achieved record $8.5 billion with $118.4 billion of net new assets and $53.7 billion of fee-based asset flows.
Robust capital and shareholder returns: The standardized CET1 capital ratio was 15.1%, the firm repurchased $1.75 billion of common stock, and the Board declared a $1.00 quarterly dividend per share.

Negative

None.

Insights

Record revenue, strong profitability and robust capital highlight a very strong quarter.

Morgan Stanley delivered net revenues of $20.6 billion, up 16% year over year, and net income applicable to the firm of $5.6 billion. Diluted EPS climbed to $3.43 from $2.60, while return on tangible common equity reached 27.1%, indicating very strong profitability relative to its capital base.

Growth was broad-based. Institutional Securities net revenues rose to $10.7 billion, with investment banking up 36% and equity and fixed income trading revenues each increasing more than 20% versus a year ago. Wealth Management reported record net revenues of $8.5 billion, supported by $118.4 billion of net new assets and $53.7 billion of fee-based asset flows.

Capital and shareholder returns remained robust: the standardized CET1 capital ratio was 15.1%, and the firm repurchased $1.75 billion of common stock while declaring a $1.00 quarterly dividend per share. The expense efficiency ratio improved to 65% despite recognizing $178 million of severance costs tied to a workforce action in Q1 2026. Future disclosures in company filings may provide more detail on how sustained client flows and trading activity support earnings durability.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net revenues: $20.6B Net income applicable to Morgan Stanley: $5.6B Diluted EPS: $3.43 +5 more

8 metrics

Net revenues $20.6B Q1 2026 vs $17.7B in Q1 2025

Net income applicable to Morgan Stanley $5.6B Q1 2026 vs $4.3B in Q1 2025

Diluted EPS $3.43 Q1 2026 vs $2.60 in Q1 2025

Return on tangible common equity 27.1% Q1 2026 firm-level ROTCE

CET1 capital ratio (standardized) 15.1% As of March 31, 2026

Share repurchases $1.75B / 10M shares Q1 2026, average price $169.15

Wealth Management net new assets $118.4B Q1 2026 net new assets

Expense efficiency ratio 65% Q1 2026 vs 68% in Q1 2025

Key Terms

Return on tangible common equity, Common Equity Tier 1 capital ratio, expense efficiency ratio, supplementary leverage ratio, +1 more

5 terms

Return on tangible common equity financial

"Return on tangible common equity 5 | 27.1 | % | 23.0 | %"

Return on tangible common equity measures how much profit a company generates from the real, spendable capital that belongs to common shareholders, shown as a percentage. It strips out intangible items like goodwill to focus on the “hard” equity and tells investors how efficiently the firm uses that tangible capital to create earnings—think of it as the return on the cash you actually have rather than on paper values or goodwill.

Common Equity Tier 1 capital ratio financial

"CET1 capital 17 | 15.1 | % | 15.3 | %"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

expense efficiency ratio financial

"Expense efficiency ratio 9 | 65 | % | 68 | %"

supplementary leverage ratio financial

"SLR 19 | 5.0 | % | 5.6 | %"

Provision for credit losses financial

"Provision for credit losses | 98 | | | 135 |"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

Offering Details

earnings_snapshot

Offering

Offering Type earnings_snapshot

Understanding 8-K Material Events →

04/15/2026 - 07:57 AM

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant To Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 15, 2026



Morgan Stanley
(Exact Name of Registrant as Specified in Charter)



Delaware	1-11758	36-3145972
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1585 Broadway, New York, New York		10036
(Address of Principal Executive Offices)		(Zip Code)


Registrant’s telephone number, including area code: (212) 761-4000

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	MS	New York Stock Exchange


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate Non-Cumulative Preferred Stock, Series A, $0.01 par value	MS/PA	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E, $0.01 par value	MS/PE	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F, $0.01 par value	MS/PF	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I, $0.01 par value	MS/PI	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K, $0.01 par value	MS/PK	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.875% Non-Cumulative Preferred Stock, Series L, $0.01 par value	MS/PL	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 4.250% Non-Cumulative Preferred Stock, Series O, $0.01 par value	MS/PO	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 6.500% Non-Cumulative Preferred Stock, Series P, $0.01 par value	MS/PP	New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 6.625% Non-Cumulative Preferred Stock, Series Q, $0.01 par value	MS/PQ	New York Stock Exchange
Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029 of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)	MS/29	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 15, 2026, Morgan Stanley (the "Company") released financial information with respect to its quarter ended March 31, 2026. A copy of the press release containing this information is annexed as Exhibit 99.1 to this Report and by this reference incorporated herein and made a part hereof. In addition, a copy of the Company's Financial Data Supplement for its quarter ended March 31, 2026 is annexed as Exhibit 99.2 to this Report and by this reference incorporated herein and made a part hereof.

The information furnished under Item 2.02 of this Report, including Exhibit 99.1 and Exhibit 99.2, shall be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, as amended.


Item 9.01			Financial Statements and Exhibits.
(d)			Exhibits
Exhibit
Number			Description

99.1			Press release of the Company, dated April 15, 2026, containing financial information for the quarter ended March 31, 2026.
99.2			Financial Data Supplement of the Company for the quarter ended March 31, 2026.
101			Interactive Data Files pursuant to Rule 406 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”).
104			Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

MORGAN STANLEY
(Registrant)

Date:

April 15, 2026

By:

/s/ Victoria Worster

Name:

Victoria Worster

Title:

Chief Accounting Officer and Controller

Morgan Stanley First Quarter 2026 Earnings Results

Morgan Stanley Reports Net Revenues of $20.6 Billion, EPS of $3.43 and ROTCE of 27.1%

NEW YORK, April 15, 2026 – Morgan Stanley (NYSE: MS) today reported net revenues of $20.6 billion for the first quarter ended March 31, 2026 compared with $17.7 billion a year ago. Net income applicable to Morgan Stanley was $5.6 billion, or $3.43 per diluted share, compared with $4.3 billion, or $2.60 per diluted share, for the same period a year ago.1


Ted Pick, Chairman and Chief Executive Officer, said, “Morgan Stanley reported a record quarter. Strong execution resulted in net revenues of $20.6 billion, EPS of $3.43 and a ROTCE of 27.1%. Institutional Securities benefited from robust client engagement and strength globally. Wealth Management demonstrated continued momentum, with net new assets of $118 billion and fee-based asset flows of $54 billion. These results affirm the capabilities of our Integrated Firm as we deliver a higher plane of operating performance.”


Financial Summary2,3
Firm ($ millions, except per share data)	1Q 2026		1Q 2025
Net revenues	$20,580		$17,739
Provision for credit losses	$98		$135
Compensation expense	$8,542		$7,521
Non-compensation expenses	$4,929		$4,539
Pre-tax income7	$7,011		$5,544
Net income app. to MS	$5,567		$4,315
Expense efficiency ratio9	65	%	68	%
Earnings per diluted share1	$3.43		$2.60
Book value per share	$66.18		$60.41
Tangible book value per share5	$51.58		$46.08
Return on equity	21.0	%	17.4	%
Return on tangible common equity5	27.1	%	23.0	%
Institutional Securities
Net revenues	$10,721		$8,983
Investment Banking	$2,116		$1,559
Equity	$5,148		$4,128
Fixed Income	$3,358		$2,604
Wealth Management
Net revenues	$8,519		$7,327
Fee-based client assets ($ billions)10	$2,792		$2,349
Fee-based asset flows ($ billions)11	$53.7		$29.8
Net new assets ($ billions)12	$118.4		$93.8
Loans ($ billions)	$186.3		$162.5
Investment Management
Net revenues	$1,535		$1,602
AUM ($ billions)13	$1,868		$1,647
Long-term net flows ($ billions)14	$3.3		$8.6

Highlights

•The Firm reported record net revenues and pre-tax income of $20.6 billion and $7.0 billion, respectively.4

•The Firm delivered a strong ROTCE of 27.1%.2,5

•The expense efficiency ratio was 65% for the first quarter, demonstrating operating leverage while continuing to invest in our businesses.3,9,20

•The Standardized Common Equity Tier 1 capital ratio was 15.1%.17

•Institutional Securities reported record net revenues of $10.7 billion reflecting strong performance in our Markets businesses driven by robust client engagement on increased market volatility, and strength in Investment Banking led by advisory.4

•Wealth Management delivered record net revenues of $8.5 billion with a pre-tax margin of 30.4%, reflecting strong asset management revenues, robust levels of client activity and higher net interest income.8 The business demonstrated strong momentum with net new assets of $118 billion and fee-based asset flows of $54 billion for the quarter.11,12

•Investment Management results reflect net revenues of $1.5 billion, primarily driven by asset management fees on higher average AUM. The quarter included positive long-term net flows of $3.3 billion.14


Media Relations: Wesley McDade 212-761-2430 Investor Relations: Leslie Bazos 212-761-5352

First Quarter Results

Institutional Securities

Institutional Securities reported net revenues of $10.7 billion compared with $9.0 billion a year ago. Pre-tax income was $4.2 billion compared with $3.3 billion a year ago.7

Investment Banking net revenues up 36%:

•Advisory revenues increased from a year ago on higher completed M&A transactions, particularly in the Americas.

•Equity underwriting revenues increased from a year ago on higher IPO and convertible offerings.

•Fixed income underwriting revenues increased from a year ago primarily driven by higher investment grade issuances benefitting from increased event-related activity.

Equity net revenues up 25%:

•Record Equity net revenues increased from a year ago with outperformance across businesses and regions, particularly in prime brokerage and derivatives, driven by strong client activity.4

Fixed Income net revenues up 29%:

•Fixed Income net revenues increased from a year ago reflecting strong results across businesses on strong client activity with increases in commodities benefitting from volatility in the energy markets.

Other:

•Other revenues decreased from a year ago primarily driven by realized gains on the sale of corporate loans held-for-sale in the prior year period.


($ millions)	1Q 2026	1Q 2025
Net Revenues	$10,721	$8,983

Investment Banking	$2,116	$1,559
Advisory	$978	$563
Equity underwriting	$396	$319
Fixed income underwriting	$742	$677

Equity	$5,148	$4,128
Fixed Income	$3,358	$2,604
Other	$99	$692

Provision for credit losses	$92	$91

Total Expenses	$6,468	$5,611
Compensation	$3,264	$2,854
Non-compensation	$3,204	$2,757

Provision for credit losses:

•Provision for credit losses in the quarter was driven by individual assessments for certain commercial real estate loans in addition to increased macroeconomic uncertainty.

Total Expenses:

•Compensation expense increased from a year ago primarily driven by higher revenues and stock-based compensation expense related to awards granted in prior periods.

•Non-compensation expenses increased from a year ago primarily driven by higher execution-related expenses.


2

Wealth Management

Wealth Management reported record net revenues of $8.5 billion compared with $7.3 billion a year ago. Pre-tax income of $2.6 billion resulted in a pre-tax margin of 30.4%.7, 8

Net revenues up 16%:

•Asset management revenues increased from a year ago on elevated assets driven by higher markets and the cumulative impact of strong fee-based flows.11

•Transactional revenues increased from a year ago driven by a broad-based increase in client activity across products. The prior year quarter included mark-to-market losses on investments associated with DCP which are no longer presented in net revenues.6,15

•Net interest income increased from a year ago primarily driven by the cumulative impact of lending growth and higher average sweep deposits.

Total Expenses:

•Compensation expense increased from a year ago primarily driven by higher compensable revenues.

•Non-compensation expenses decreased from a year ago primarily due to lower amortization of intangible assets. Lower consulting spend also contributed to the decrease, partially offset by higher marketing and business development costs.


($ millions)	1Q 2026	1Q 2025
Net Revenues	$8,519	$7,327
Asset management	$5,079	$4,396
Transactional15	$1,127	$873
Net interest	$2,170	$1,902
Other	$143	$156
Provision for credit losses	$6	$44
Total Expenses	$5,922	$5,332
Compensation	$4,648	$3,999
Non-compensation	$1,274	$1,333

Investment Management

Investment Management reported net revenues of $1.5 billion compared with $1.6 billion a year ago. Pre-tax income was $280 million compared with $323 million a year ago.7

Net revenues down 4%:

•Asset management and related fees increased from a year ago on higher average AUM driven by higher market levels and the cumulative impact of positive flows.13

•Performance-based income and other revenues decreased from a year ago primarily due to lower accrued carried interest in our private funds.

Total Expenses:

•Compensation expense decreased from a year ago primarily due to lower compensation associated with carried interest.

•Non-compensation expenses increased from a year ago primarily driven by technology spend and distribution expenses on higher average AUM.


($ millions)	1Q 2026	1Q 2025
Net Revenues	$1,535	$1,602
Asset management and related fees	$1,496	$1,451
Performance-based income and other	$39	$151
Total Expenses	$1,255	$1,279
Compensation	$630	$668
Non-compensation	$625	$611


3

Other Matters

•The Firm repurchased $1.75 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.

•The Board of Directors declared a $1.00 quarterly dividend per share payable on May 15, 2026 to common shareholders of record on April 30, 2026.

•The effective tax rate for the current quarter was 19.6%, reflecting a higher benefit associated with employee share-based payments compared to a year ago.21


	1Q 2026		1Q 2025
Common Stock Repurchases
Repurchases ($MM)	$1,750		$1,000
Number of Shares (MM)	10		8
Average Price	$169.15		$125.88
Period End Shares (MM)	1,580		1,607
Effective Tax Rate	19.6%		21.2%
Capital16
Standardized Approach
CET1 capital17	15.1	%	15.3	%
Tier 1 capital17	16.8	%	17.2	%
Advanced Approach
CET1 capital17	16.0	%	15.7	%
Tier 1 capital17	17.9	%	17.7	%
Leverage-based capital
Tier 1 leverage18	6.1	%	6.9	%
SLR19	5.0	%	5.6	%


4

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.morganstanley.com.

NOTICE:

The information provided herein and in the financial supplement, including information provided on the Firm’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available on www.morganstanley.com.

This earnings release may contain forward-looking statements, including the attainment of certain financial and other targets, objectives and goals. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretations or beliefs and which are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of risks and uncertainties that may affect the future results of the Firm, please see “Forward-Looking Statements” preceding Part I, Item 1, “Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and “Quantitative and Qualitative Disclosures about Risk” in Part II, Item 7A in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2025 and other items throughout the Form 10-K, the Firm’s Quarterly Reports on Form 10-Q and the Firm’s Current Reports on Form 8-K, including any amendments thereto.


5

1 Includes preferred dividends related to the calculation of earnings per share for the first quarter of 2026 and 2025 of approximately $156 million and $158 million, respectively.

2 The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). From time to time, Morgan Stanley may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by Morgan Stanley are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable U.S. GAAP financial measure.

3 Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics which we believe to be useful to us, analysts, investors, and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.

4 Firm, Institutional Securities and Equity net revenues and Firm pre-tax income represent records for a reported quarterly period after excluding the impact of debt valuation adjustments (DVA), which were previously reflected in net revenues in prior periods before 2016, and reflecting the current reporting structure of the Firm (i.e. exclusive of discontinued operations). Net revenues and net income applicable to Morgan Stanley, excluding the impact of DVA, were non-GAAP financial measures in those prior periods that were reconciled to the comparable GAAP financial measures in the respective quarterly reports filed on Form 10-Q.

5 Tangible common equity is a non-GAAP financial measure that the Firm considers useful for analysts, investors and other stakeholders to allow comparability of period-to-period operating performance and capital adequacy. Tangible common equity represents common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The calculation of return on average tangible common equity, also a non-GAAP financial measure, represents full year or annualized net income applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity. The calculation of tangible book value per common share, also a non-GAAP financial measure, represents tangible common shareholder’s equity divided by common shares outstanding.

6 “DCP” refers to certain employee deferred cash-based compensation programs. Please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Matters – Deferred Cash-Based Compensation” in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2025.

Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments with changes in fair value recorded in compensation expense or in other comprehensive income within shareholder's equity and later reclassified to compensation expense in the same period as the related DCP award vests. As a result, the Firm no longer presents non-GAAP measures of net revenues and compensation expense excluding DCP. Wealth Management net revenues included mark-to-market losses associated with DCP of $131 million in the first quarter of 2025.

7 Pre-tax income represents income before provision for income taxes.

8 Pre-tax margin represents income before provision for income taxes divided by net revenues.

9 The expense efficiency ratio represents total non-interest expenses as a percentage of net revenues.

10 Wealth Management fee-based client assets represent the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.

11 Wealth Management fee-based asset flows include net new fee-based assets (including asset acquisitions), net account transfers, dividends, interest, and client fees, and exclude institutional cash management related activity.

12 Wealth Management net new assets represent client asset inflows, inclusive of interest, dividends and asset acquisitions, less client asset outflows, and exclude the impact of business combinations/divestitures and the impact of fees and commissions.

13 AUM is defined as assets under management or supervision.


6

14 Long-term net flows include the Equity, Fixed Income and Alternative and Solutions asset classes and excludes the Liquidity and Overlay Services asset class. To conform the reporting of Net Flows with the Assets Under Management or Supervision Rollforward presented in Management’s Discussion and Analysis of our annual and quarterly reports on SEC Form 10-K and 10-Q, beginning in the first quarter of 2026, distributions, which represent returns of capital or returns on investments, are no longer included in Net flows. Distributions for long-term products were $3 billion and $3 billion for the quarter ended March 31, 2026 and 2025, respectively. Prior period amounts have been adjusted to conform with the current period presentation. Please see the financial supplement for addendums containing updated net flows, AUM, average AUM, average fee rates and AUM rollforwards by asset class.

15 Transactional revenues include investment banking, trading, and commissions and fee revenues.

16 Capital ratios are estimates as of the press release date, April 15, 2026.

17 CET1 capital is defined as Common Equity Tier 1 capital. The Firm’s risk-based capital ratios are computed under each of the (i) standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (the “Standardized Approach”) and (ii) applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (the “Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2025.

18 The Tier 1 leverage ratio is a leverage-based capital requirement that measures the Firm’s leverage. Tier 1 leverage ratio utilizes Tier 1 capital as the numerator and average adjusted assets as the denominator.

19 The Firm’s supplementary leverage ratio (SLR) utilizes a Tier 1 capital numerator of approximately $94.2 billion and $86.7 billion, and supplementary leverage exposure denominator of approximately $1.88 trillion and $1.55 trillion, for the first quarter of 2026 and 2025, respectively.

20 During the current quarter, as a result of a March workforce management action, we recognized severance costs of $178 million in Compensation and benefits expense. The workforce management action was related to an effort to improve operational efficiency and manage performance, rather than a change in strategy or exit of businesses. The workforce management action occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. We recorded severance costs of $94 million in the Institutional Securities business segment, $61 million in the Wealth Management business segment, and $23 million in the Investment Management business segment. These costs were incurred across all regions, with the majority in the Americas.

21 The income tax consequences related to employee share-based compensation payments are recognized in Provision for income taxes in the consolidated income statement, and may be either a benefit or a provision. The impacts of recognizing excess tax benefits upon conversion of awards were $327 million and $208 million for the first quarters of 2026 and 2025, respectively.


7


Consolidated Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended						Percentage Change From:
	Mar 31, 2026		Dec 31, 2025		Mar 31, 2025		Dec 31, 2025		Mar 31, 2025

Revenues:
Investment banking	$	2,289	$	2,578	$	1,711	(11	%)	34	%
Trading	6,730		3,680		5,111		83	%	32	%
Investments	146		220		369		(34	%)	(60	%)
Commissions and fees	1,690		1,557		1,481		9	%	14	%
Asset management	6,730		6,788		5,963		(1	%)	13	%
Other	292		212		751		38	%	(61	%)
Total non-interest revenues	17,877		15,035		15,386		19	%	16	%
Interest income	15,273		14,954		13,748		2	%	11	%
Interest expense	12,570		12,099		11,395		4	%	10	%
Net interest	2,703		2,855		2,353		(5	%)	15	%
Net revenues	20,580		17,890		17,739		15	%	16	%
Provision for credit losses	98		18		135		*		(27	%)
Non-interest expenses:
Compensation and benefits	8,542		7,063		7,521		21	%	14	%
Non-compensation expenses:
Brokerage, clearing and exchange fees	1,256		1,128		1,222		11	%	3	%
Information processing and communications	1,148		1,160		1,050		(1	%)	9	%
Professional services	602		769		674		(22	%)	(11	%)
Occupancy and equipment	483		491		449		(2	%)	8	%
Marketing and business development	310		358		238		(13	%)	30	%
Other	1,130		1,143		906		(1	%)	25	%
Total non-compensation expenses	4,929		5,049		4,539		(2	%)	9	%
Total non-interest expenses	13,471		12,112		12,060		11	%	12	%
Income before provision for income taxes	7,011		5,760		5,544		22	%	26	%
Provision for income taxes	1,373		1,336		1,173		3	%	17	%
Net income	$	5,638	$	4,424	$	4,371	27	%	29	%
Net income applicable to noncontrolling interests	71		27		56		163	%	27	%
Net income applicable to Morgan Stanley	5,567		4,397		4,315		27	%	29	%
Preferred stock dividends	156		147		158		6	%	(1	%)
Earnings applicable to Morgan Stanley common shareholders	$	5,411	$	4,250	$	4,157	27	%	30	%

Notes:

–In prior periods, the Firm presented non-GAAP financial measures to adjust net revenues and compensation expense for mark-to-market gains and losses on DCP. Firm net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 4Q25: $17,895 million, 1Q25: $17,888 million. Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 4Q25: $6,968 million, 1Q25: $7,523 million.

–Beginning in the first quarter of 2026, the Firm utilizes derivatives to hedge certain DCP awards and as a result will no longer present non-GAAP financial measures excluding DCP.

–The End Notes are an integral part of this presentation. Refer to pages 15 - 21 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)
		Quarter Ended									Percentage Change From:
		Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025

Financial Metrics:

	Earnings per basic share	$	3.47		$	2.72		$	2.62		28	%	32	%
	Earnings per diluted share	$	3.43		$	2.68		$	2.60		28	%	32	%

	Return on average common equity	21.0		%	16.9		%	17.4		%
	Return on average tangible common equity	27.1		%	21.8		%	23.0		%

	Book value per common share	$	66.18		$	64.37		$	60.41
	Tangible book value per common share	$	51.58		$	50.00		$	46.08

Financial Ratios:

	Pre-tax margin	34		%	32		%	31		%
	Compensation and benefits as a % of net revenues	42		%	39		%	42		%
	Non-compensation expenses as a % of net revenues	24		%	28		%	26		%
	Firm expense efficiency ratio	65		%	68		%	68		%
	Effective tax rate	19.6		%	23.2		%	21.2		%

Statistical Data:

	Period end common shares outstanding (millions)	1,580			1,583			1,607			—	%	(2	%)
	Average common shares outstanding (millions)
	Basic	1,561			1,564			1,584			—	%	(1	%)
	Diluted	1,576			1,586			1,600			(1	%)	(2	%)
	Worldwide employees	83,922			82,992			81,023			1	%	4	%

The End Notes are an integral part of this presentation. Refer to pages 15 - 21 of the Financial Supplement for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


First Quarter 2026 Earnings Results

Quarterly Financial Supplement			Page

Consolidated Financial Summary			1
Consolidated Financial Metrics, Ratios and Statistical Data			2
Consolidated and U.S. Bank Supplemental Financial Information			3
Consolidated Average Common Equity and Regulatory Capital Information			4
Institutional Securities Income Statement Information, Financial Metrics and Ratios			5
Wealth Management Income Statement Information, Financial Metrics and Ratios			6
Wealth Management Financial Information and Statistical Data			7
Investment Management Income Statement Information, Financial Metrics and Ratios			8
Investment Management Financial Information and Statistical Data			9
Consolidated Loans and Lending Commitments			10
Consolidated Loans and Lending Commitments Allowance for Credit Losses			11
Addendum I			12
Addendum II			13
Addendum III			14
Definition of U.S. GAAP to Non-GAAP Measures			15
Definitions of Performance Metrics and Terms			16 - 17
Supplemental Quantitative Details and Calculations			18 - 20
Legal Notice			21


Consolidated Financial Summary
(unaudited, dollars in millions)

		Quarter Ended						Percentage Change From:
		Mar 31, 2026		Dec 31, 2025		Mar 31, 2025		Dec 31, 2025		Mar 31, 2025
Net revenues
	Institutional Securities	$	10,721	$	7,931	$	8,983	35	%	19	%
	Wealth Management	8,519		8,429		7,327		1	%	16	%
	Investment Management	1,535		1,720		1,602		(11	%)	(4	%)
	Intersegment Eliminations	(195)		(190)		(173)		(3	%)	(13	%)
	Net revenues (1)	$	20,580	$	17,890	$	17,739	15	%	16	%

Provision for credit losses		$	98	$	18	$	135	*		(27	%)

Non-interest expenses
	Institutional Securities	$	6,468	$	5,226	$	5,611	24	%	15	%
	Wealth Management	5,922		5,810		5,332		2	%	11	%
	Investment Management	1,255		1,252		1,279		—	%	(2	%)
	Intersegment Eliminations	(174)		(176)		(162)		1	%	(7	%)
	Non-interest expenses (1)(2)	$	13,471	$	12,112	$	12,060	11	%	12	%

Income before provision for income taxes
	Institutional Securities	$	4,161	$	2,663	$	3,281	56	%	27	%
	Wealth Management	2,591		2,643		1,951		(2	%)	33	%
	Investment Management	280		468		323		(40	%)	(13	%)
	Intersegment Eliminations	(21)		(14)		(11)		(50	%)	(91	%)
	Income before provision for income taxes	$	7,011	$	5,760	$	5,544	22	%	26	%

Net Income applicable to Morgan Stanley
	Institutional Securities	$	3,294	$	2,049	$	2,529	61	%	30	%
	Wealth Management	2,047		2,009		1,532		2	%	34	%
	Investment Management	242		349		262		(31	%)	(8	%)
	Intersegment Eliminations	(16)		(10)		(8)		(60	%)	(100	%)
	Net Income applicable to Morgan Stanley	$	5,567	$	4,397	$	4,315	27	%	29	%
Earnings applicable to Morgan Stanley common shareholders		$	5,411	$	4,250	$	4,157	27	%	30	%


Notes:
-	In prior periods, the Firm presented non-GAAP financial measures to adjust net revenues and compensation expense for mark-to-market gains and losses on deferred cash-based compensation plans (DCP). Firm net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 4Q25: $17,895 million, 1Q25: $17,888 million. Firm compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 4Q25: $6,968 million, 1Q25: $7,523 million.
-	Beginning in the first quarter of 2026, the Firm utilizes derivatives to hedge certain DCP awards and as a result will no longer present non-GAAP financial measures excluding DCP.
-	The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Consolidated Financial Metrics, Ratios and Statistical Data
(unaudited)

		Quarter Ended									Percentage Change From:
		Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025

Financial Metrics:

	Earnings per basic share	$	3.47		$	2.72		$	2.62		28	%	32	%
	Earnings per diluted share	$	3.43		$	2.68		$	2.60		28	%	32	%

	Return on average common equity	21.0		%	16.9		%	17.4		%
	Return on average tangible common equity	27.1		%	21.8		%	23.0		%

	Book value per common share	$	66.18		$	64.37		$	60.41
	Tangible book value per common share	$	51.58		$	50.00		$	46.08

Financial Ratios:

	Pre-tax margin	34		%	32		%	31		%
	Compensation and benefits as a % of net revenues	42		%	39		%	42		%
	Non-compensation expenses as a % of net revenues	24		%	28		%	26		%
	Firm expense efficiency ratio (1)	65		%	68		%	68		%
	Effective tax rate (2)	19.6		%	23.2		%	21.2		%

Statistical Data:

	Period end common shares outstanding (millions)	1,580			1,583			1,607			—	%	(2	%)
	Average common shares outstanding (millions)
	Basic	1,561			1,564			1,584			—	%	(1	%)
	Diluted	1,576			1,586			1,600			(1	%)	(2	%)

	Worldwide employees	83,922			82,992			81,023			1	%	4	%


The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Consolidated and U.S. Bank Supplemental Financial Information
(unaudited, dollars in millions)

		Quarter Ended						Percentage Change From:
		Mar 31, 2026		Dec 31, 2025		Mar 31, 2025		Dec 31, 2025		Mar 31, 2025

Consolidated Balance sheet
Total assets		$	1,581,418	$	1,420,270	$	1,300,296	11	%	22	%
Loans (1)		$	306,260	$	289,038	$	258,969	6	%	18	%
Deposits		$	427,971	$	415,523	$	381,563	3	%	12	%
Long-term debt outstanding		$	363,009	$	341,681	$	296,997	6	%	22	%
Maturities of long-term debt outstanding (next 12 months)		$	27,384	$	26,236	$	22,963	4	%	19	%

Average liquidity resources		$	395,141	$	385,884	$	351,740	2	%	12	%

Common equity		$	104,536	$	101,882	$	97,062	3	%	8	%
Less: Goodwill and intangible assets		(23,063)		(22,735)		(23,018)		1	%	—	%
Tangible common equity		$	81,473	$	79,147	$	74,044	3	%	10	%

Preferred equity		$	9,750	$	9,750	$	9,750	—	%	—	%

U.S. Bank Supplemental Financial Information
Total assets		$	591,743	$	598,668	$	549,594	(1	%)	8	%
Loans		$	293,803	$	278,352	$	246,221	6	%	19	%
Investment securities portfolio (2)		$	129,434	$	132,611	$	125,421	(2	%)	3	%
Deposits		$	420,104	$	408,703	$	375,499	3	%	12	%

Regional revenues
Americas		$	14,591	$	13,784	$	13,103	6	%	11	%
EMEA (Europe, Middle East, Africa)		2,641		1,956		2,291		35	%	15	%
Asia		3,348		2,150		2,345		56	%	43	%
Consolidated net revenues		$	20,580	$	17,890	$	17,739	15	%	16	%



Notes:
-	During the first quarter of 2026, the U.S. Bank implemented a reorganization of its operations, merging certain fixed income businesses and acquiring certain legal entities of Morgan Stanley. As the reorganization involved subsidiaries under the common control of the Firm, assets and liabilities were recognized at their carrying values, and historical financial statements of the U.S. Bank will reflect the reorganization as having occurred at the beginning of 2025.
-	The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Consolidated Average Common Equity and Regulatory Capital Information
(unaudited, dollars in billions)

	Quarter Ended									Percentage Change From:
	Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025

Average Common Equity
Institutional Securities	$	48.2		$	48.4		$	48.4		—	%	—	%
Wealth Management	28.7			29.4			29.4			(2	%)	(2	%)
Investment Management	10.2			10.6			10.6			(4	%)	(4	%)
Parent Company	15.8			12.5			7.1			26	%	123	%
Firm	$	102.9		$	100.9		$	95.5		2	%	8	%


Regulatory Capital (1)

Common Equity Tier 1 capital	$	84.5		$	83.2		$	77.0		2	%	10	%
Tier 1 capital	$	94.2		$	92.7		$	86.7		2	%	9	%

Standardized Approach
Risk-weighted assets	$	559.5		$	552.5		$	502.6		1	%	11	%
Common Equity Tier 1 capital ratio	15.1		%	15.0		%	15.3		%
Tier 1 capital ratio	16.8		%	16.8		%	17.2		%

Advanced Approach
Risk-weighted assets	$	527.5		$	514.2		$	489.3		3	%	8	%
Common Equity Tier 1 capital ratio	16.0		%	16.2		%	15.7		%
Tier 1 capital ratio	17.9		%	18.0		%	17.7		%

Leverage-based capital
Tier 1 leverage ratio	6.1		%	6.7		%	6.9		%
Supplementary Leverage Ratio	5.0		%	5.4		%	5.6		%



The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Institutional Securities
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:
	Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025
Revenues:

Advisory	$	978		$	1,133		$	563		(14	%)	74	%
Equity	396			494			319			(20	%)	24	%
Fixed income	742			785			677			(5	%)	10	%
Underwriting	1,138			1,279			996			(11	%)	14	%
Investment banking	2,116			2,412			1,559			(12	%)	36	%

Equity	5,148			3,666			4,128			40	%	25	%
Fixed income	3,358			1,763			2,604			90	%	29	%
Other	99			90			692			10	%	(86	%)

Net revenues	10,721			7,931			8,983			35	%	19	%

Provision for credit losses	92			42			91			119	%	1	%

Compensation and benefits	3,264			2,079			2,854			57	%	14	%
Non-compensation expenses	3,204			3,147			2,757			2	%	16	%
Total non-interest expenses	6,468			5,226			5,611			24	%	15	%

Income before provision for income taxes	4,161			2,663			3,281			56	%	27	%
Net income applicable to Morgan Stanley	$	3,294		$	2,049		$	2,529		61	%	30	%

Pre-tax margin	39		%	34		%	37		%
Compensation and benefits as a % of net revenues	30		%	26		%	32		%
Non-compensation expenses as a % of net revenues	30		%	40		%	31		%

Return on Average Common Equity	26		%	16		%	20		%
Return on Average Tangible Common Equity (1)	27		%	16		%	20		%

Trading VaR (Average Daily 95% / One-Day VaR)	$	53		$	51		$	50


The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Wealth Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

		Quarter Ended									Percentage Change From:
		Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025
Revenues:
Asset management		$	5,079		$	5,031		$	4,396		1	%	16	%
Transactional		1,127			1,143			873			(1	%)	29	%
Net interest income		2,170			2,108			1,902			3	%	14	%
Other		143			147			156			(3	%)	(8	%)
Net revenues (1)		8,519			8,429			7,327			1	%	16	%

Provision for credit losses		6			(24)			44			*		(86	%)

Compensation and benefits (1)		4,648			4,416			3,999			5	%	16	%
Non-compensation expenses		1,274			1,394			1,333			(9	%)	(4	%)
Total non-interest expenses		5,922			5,810			5,332			2	%	11	%

Income before provision for income taxes		2,591			2,643			1,951			(2	%)	33	%
Net income applicable to Morgan Stanley		$	2,047		$	2,009		$	1,532		2	%	34	%

Pre-tax margin		30		%	31		%	27		%
Compensation and benefits as a % of net revenues		55		%	52		%	55		%
Non-compensation expenses as a % of net revenues		15		%	17		%	18		%

Return on Average Common Equity		28		%	27		%	20		%
Return on Average Tangible Common Equity (2)		52		%	48		%	37		%



Notes:
-	In prior periods, the Firm presented non-GAAP financial measures to adjust net revenues and compensation expense for mark-to-market gains and losses on DCP. Wealth Management net revenues excluding DCP, which represents a non‐GAAP financial measure, were: 4Q25: $8,450 million, 1Q25: $7,458 million. Wealth Management compensation expenses excluding DCP, which represents a non‐GAAP financial measure, were: 4Q25: $4,350 million, 1Q25: $4,016 million.
-	Beginning in the first quarter of 2026, the Firm utilizes derivatives to hedge certain DCP awards and as a result will no longer present non-GAAP financial measures excluding DCP.
-	The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Wealth Management
Financial Information and Statistical Data
(unaudited, dollars in billions)

	Quarter Ended									Percentage Change From:
	Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025

Wealth Management Metrics

Total client assets	$	7,345		$	7,381		$	6,015		—	%	22	%
Net new assets	$	118.4		$	122.3		$	93.8		(3	%)	26	%
U.S. Bank loans	$	186.3		$	181.2		$	162.5		3	%	15	%
Margin and other lending (1)	$	33.2		$	31.2		$	28.3		6	%	17	%
Deposits (2)	$	419		$	408		$	375		3	%	12	%
Annualized weighted average cost of deposits
Period end	2.51		%	2.51		%	2.77		%
Period average	2.53		%	2.67		%	2.77		%

Advisor-led channel

Advisor-led client assets	$	5,784		$	5,715		$	4,719		1	%	23	%

Fee-based client assets	$	2,792		$	2,753		$	2,349		1	%	19	%
Fee-based asset flows	$	53.7		$	45.6		$	29.8		18	%	80	%
Fee-based assets as a % of advisor-led client assets	48		%	48		%	50		%

Self-directed channel

Self-directed client assets	$	1,561		$	1,667		$	1,295		(6	%)	21	%
Daily average revenue trades (000's)	1,128			1,116			1,003			1	%	12	%
Self-directed households (millions)	8.6			8.5			8.3			1	%	4	%

Workplace channel

Stock plan unvested public assets	$	475		$	534		$	431		(11	%)	10	%
Number of stock plan participants (millions) (3)	6.6			6.5			6.7			2	%	(1	%)


The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Investment Management
Income Statement Information, Financial Metrics and Ratios
(unaudited, dollars in millions)

	Quarter Ended									Percentage Change From:
	Mar 31, 2026			Dec 31, 2025			Mar 31, 2025			Dec 31, 2025		Mar 31, 2025
Revenues:
Asset management and related fees	$	1,496		$	1,649		$	1,451		(9	%)	3	%
Performance-based income and other	39			71			151			(45	%)	(74	%)
Net revenues	1,535			1,720			1,602			(11	%)	(4	%)

Compensation and benefits	630			568			668			11	%	(6	%)
Non-compensation expenses	625			684			611			(9	%)	2	%
Total non-interest expenses	1,255			1,252			1,279			—	%	(2	%)

Income before provision for income taxes	280			468			323			(40	%)	(13	%)
Net income applicable to Morgan Stanley	$	242		$	349		$	262		(31	%)	(8	%)

Pre-tax margin	18		%	27		%	20		%
Compensation and benefits as a % of net revenues	41		%	33		%	42		%
Non-compensation expenses as a % of net revenues	41		%	40		%	38		%

Return on Average Common Equity	9		%	13		%	10		%
Return on Average Tangible Common Equity (1)	126		%	138		%	104		%


The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Investment Management
Financial Information and Statistical Data
(unaudited, dollars in billions)

		Quarter Ended						Percentage Change From:
		Mar 31, 2026		Dec 31, 2025		Mar 31, 2025		Dec 31, 2025		Mar 31, 2025

Assets Under Management or Supervision (AUM)

Net Flows by Asset Class (1)
Equity		$	(11.6)	$	(9.8)	$	(4.0)	(18	%)	(190	%)
Fixed Income		4.3		7.8		4.1		(45	%)	5	%
Alternatives and Solutions		10.6		9.4		8.5		13	%	25	%
Long-Term Net Flows		3.3		7.4		8.6		(55	%)	(62	%)

Liquidity and Overlay Services		8.3		70.4		(15.4)		(88	%)	*

Total Net Flows		$	11.6	$	77.8	$	(6.8)	(85	%)	*

Assets Under Management or Supervision by Asset Class (1)
Equity		$	221	$	253	$	250	(13	%)	(12	%)
Fixed Income		219		217		186		1	%	18	%
Alternatives and Solutions		770		776		650		(1	%)	18	%
Long‐Term Assets Under Management or Supervision		1,210		1,246		1,086		(3	%)	11	%

Liquidity and Overlay Services		658		649		561		1	%	17	%

Total Assets Under Management or Supervision		$	1,868	$	1,895	$	1,647	(1	%)	13	%


Notes:
-	To conform the reporting of Net Flows with the Assets Under Management or Supervision Rollforward presented in Management’s Discussion and Analysis of our annual and quarterly reports on SEC Form 10-K and 10-Q, beginning in the first quarter of 2026, distributions, which represents returns of capital or returns on investments, are no longer included in Net flows. Distributions for long-term products were $3 billion, $4 billion and $3 billion, and distributions for Liquidity and Overlay Services were $3 billion, $4 billion and $4 billion for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Additionally, during the first quarter of 2026, certain products were reclassified among asset classes to more closely align reporting with underlying investment strategies, primarily reflecting a reclassification of certain tax-managed solutions from Equity to Alternatives and Solutions. Prior period amounts have been adjusted to conform with the current period presentation.
-	The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Consolidated Loans and Lending Commitments
(unaudited, dollars in billions)

	Quarter Ended						Percentage Change From:
	Mar 31, 2026		Dec 31, 2025		Mar 31, 2025		Dec 31, 2025		Mar 31, 2025

Institutional Securities

Loans:
Corporate	$	23.2	$	14.2	$	19.5	63	%	19	%
Secured lending facilities	72.2		70.8		54.9		2	%	32	%
Commercial and residential real estate	13.9		12.0		11.9		16	%	17	%
Securities-based lending and other	10.2		10.7		9.9		(5	%)	3	%

Total Loans	119.5		107.7		96.2		11	%	24	%

Lending Commitments	188.4		188.9		160.7		—	%	17	%

Institutional Securities Loans and Lending Commitments	$	307.9	$	296.6	$	256.9	4	%	20	%


Wealth Management

Loans:
Securities-based lending and other	$	112.9	$	109.0	$	95.0	4	%	19	%
Residential real estate	73.4		72.3		67.5		2	%	9	%

Total Loans	186.3		181.3		162.5		3	%	15	%

Lending Commitments	20.6		20.3		19.4		1	%	6	%

Wealth Management Loans and Lending Commitments	$	206.9	$	201.6	$	181.9	3	%	14	%

Consolidated Loans and Lending Commitments (1)	$	514.8	$	498.2	$	438.8	3	%	17	%



The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Consolidated Loans and Lending Commitments
Allowance for Credit Losses (ACL) as of March 31, 2026
(unaudited, dollars in millions)

	Loans and Lending Commitments		ACL (1)		ACL %		Q1 Provision
	(Gross)
Loans:
Held For Investment (HFI)

Corporate	$	8,911	$	240	2.7	%	$	(2)
Secured lending facilities	70,033		218		0.3	%	18
Commercial and residential real estate	8,300		328		4.0	%	56
Other	4,087		23		0.6	%	4
Institutional Securities - HFI	$	91,331	$	809	0.9	%	$	76

Wealth Management - HFI	186,523		365		0.2	%	6

Held For Investment	$	277,854	$	1,174	0.4	%	$	82

Held For Sale	17,231

Fair Value	11,884

Total Loans	306,969		1,174				82

Lending Commitments	208,973		807		0.4	%	16

Consolidated Loans and Lending Commitments	$	515,942	$	1,981			$	98



The End Notes are an integral part of this presentation. See pages 15 - 21 for Definition of U.S. GAAP to Non-GAAP Measures, Definitions of Performance Metrics and Terms, Supplemental Quantitative Details and Calculations, and Legal Notice.


Representation of Certain Investment Management Metrics
During the first quarter of 2026, certain changes were made to the presentation of Investment Management AUM classifications and Net Flows. These changes have had no impact on Total AUM and were made to more closely align reporting with underlying investment strategies and to conform reporting of Net Flows with the relevant presentations in our SEC Forms 10-K and 10-Q. In the following three Addendums, we provide the historical recast of AUM and Net Flows in the Financial Supplement for this quarter only to support historical analysis of these Investment Management metrics.

Addendum I
Investment Management Net Flows and AUM by Asset Class Recast Historical Time Series
($ in billions)
	Quarter Ended
	Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025
Net Flows by Asset Class (1) (2)
Equity	$	(11.6)	$	(9.8)	$	(6.2)	$	(2.9)	$	(4.0)
Fixed Income	4.3		7.8		7.5		7.0		4.1
Alternatives and Solutions	10.6		9.4		16.6		8.1		8.5
Long-Term Net Flows	$	3.3	$	7.4	$	17.9	$	12.2	$	8.6
Liquidity and Overlay Services	8.3		70.4		29.3		(22.7)		(15.4)
Total Net Flows	$	11.6	$	77.8	$	47.2	$	(10.5)	$	(6.8)

AUM by Asset Class (1)
Equity	$	221	$	253	$	270	$	271	$	250
Fixed Income	219		217		208		198		186
Alternatives and Solutions	770		776		752		700		650
Long‐Term AUM	$	1,210	$	1,246	$	1,230	$	1,169	$	1,086
Liquidity and Overlay Services	658		649		577		544		561
Total AUM	$	1,868	$	1,895	$	1,807	$	1,713	$	1,647


(1)			During the first quarter of 2026, certain products were reclassified among asset classes to more closely align reporting with underlying investment strategies, primarily reflecting a reclassification of tax-managed solutions from Equity to Alternatives and Solutions. These changes had no impact on total AUM. Prior period amounts have been adjusted to conform with the current period presentation.
(2)			To conform the reporting of Net Flows with the Assets Under Management or Supervision Rollforward presented in Management’s Discussion and Analysis of our annual and quarterly reports on SEC Form 10-K and 10-Q, distributions, which represent returns of capital or returns on investments, are no longer included in Net flows. Prior period amounts have been adjusted to conform with the current period presentation.


Addendum II
Investment Management Average AUM and Average Fee Rates by Asset Class Recast Historical Time Series
	Quarter Ended
	Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025
Average AUM (1)
($ in billions)

Equity	$	242	$	262	$	269	$	259	$	260
Fixed Income	220		212		203		190		183
Alternatives and Solutions	783		765		722		669		660
Long-Term AUM	$	1,245	$	1,239	$	1,194	$	1,118	$	1,103
Liquidity and Overlay Services	659		614		564		554		566
Total	$	1,904	$	1,853	$	1,758	$	1,672	$	1,669

Average Fee Rates (1)(2)
(in bps)

Equity	70		70		72		71		73
Fixed Income	34		34		34		35		35
Alternatives and Solutions	29		29		30		30		31
Long-Term AUM	38		39		40		40		42
Liquidity and Overlay Services	12		12		12		13		13
Investment Management	29		30		31		31		32


(1)			During the first quarter of 2026, certain products were reclassified among asset classes to more closely align reporting with underlying investment strategies, primarily reflecting a reclassification of certain tax-managed solutions from Equity to Alternatives and Solutions. These changes had no impact on total AUM but have impacted Average AUM and Average Fee Rates by asset class. Prior period amounts have been adjusted to conform with the current period presentation.
(2)			Based on Asset management revenues, net of waivers, excluding performance-based fees and other non-management fees. For certain non-U.S. funds, it includes the portion of advisory fees that the advisor collects on behalf of third-party distributors. The payment of those fees to the distributor is included in Non-compensation expenses in the income statement.


Addendum III
Investment Management Assets Under Management or Supervision (AUM) Rollforwards (1)
($ in billions)
Note: amounts presented in the tables below may not sum due to rounding.
	Beginning Balance		Inflows (2)		Outflows (3)		Net Flows		Distributions (4)		Market Impact and Other (5)		Ending Balance
Quarter Ended Mar 31, 2026
Equity	$	253	$	8	$	(20)	$	(12)	$	—	$	(20)	$	221
Fixed Income	217		23		(19)		4		(1)		(1)		219
Alternatives and Solutions (6)	776		42		(31)		11		(2)		(15)		770
Long-Term AUM	$	1,246	$	73	$	(70)	$	3	$	(3)	$	(36)	$	1,210
Liquidity and Overlay Services	649		748		(739)		8		(3)		3		658
Total	$	1,895	$	821	$	(809)	$	12	$	(6)	$	(33)	$	1,868
Quarter Ended Dec 31, 2025
Equity	$	270	$	11	$	(21)	$	(10)	$	(2)	$	(5)	$	253
Fixed Income	208		23		(15)		8		—		1		217
Alternatives and Solutions (6)	752		39		(30)		9		(2)		17		776
Long-Term AUM	$	1,230	$	73	$	(66)	$	7	$	(4)	$	13	$	1,246
Liquidity and Overlay Services	577		760		(689)		70		(4)		5		649
Total	$	1,807	$	833	$	(755)	$	78	$	(8)	$	18	$	1,895
Quarter Ended Sep 30, 2025
Equity	$	271	$	10	$	(16)	$	(6)	$	—	$	5	$	270
Fixed Income	198		20		(13)		8		(1)		4		208
Alternatives and Solutions (6)	700		44		(27)		17		(1)		36		752
Long-Term AUM	$	1,169	$	74	$	(56)	$	18	$	(2)	$	45	$	1,230
Liquidity and Overlay Services	544		638		(609)		29		(4)		8		577
Total	$	1,713	$	712	$	(665)	$	47	$	(6)	$	53	$	1,807
Quarter Ended Jun 30, 2025
Equity	$	250	$	9	$	(12)	$	(3)	$	—	$	24	$	271
Fixed Income	186		24		(17)		7		(1)		6		198
Alternatives and Solutions (6)	650		33		(25)		8		(1)		43		700
Long-Term AUM	$	1,086	$	66	$	(54)	$	12	$	(2)	$	73	$	1,169
Liquidity and Overlay Services	561		647		(670)		(23)		(4)		10		544
Total	$	1,647	$	713	$	(724)	$	(11)	$	(6)	$	83	$	1,713
Quarter Ended Mar 31, 2025
Equity	$	259	$	12	$	(16)	$	(4)	$	—	$	(5)	$	250
Fixed Income	179		16		(12)		4		(1)		4		186
Alternatives and Solutions (6)	654		35		(26)		9		(2)		(11)		650
Long-Term AUM	$	1,092	$	63	$	(54)	$	9	$	(3)	$	(12)	$	1,086
Liquidity and Overlay Services	574		693		(709)		(15)		(4)		7		561
Total	$	1,666	$	756	$	(763)	$	(7)	$	(7)	$	(5)	$	1,647


(1)			During the first quarter of 2026, certain products were reclassified among asset classes to more closely align reporting with underlying investment strategies, primarily reflecting a reclassification of certain tax-managed solutions from Equity to Alternatives and Solutions. These changes had no impact on total AUM. Prior period amounts have been adjusted to conform with the current period presentation.
(2)			Inflows represents investments or commitments from new and existing clients in new or existing investment products, including client reinvestments. Inflows exclude the gross impact of exchanges, whereby a client changes positions within the same asset class.
(3)			Outflows represents redemptions from clients’ funds. Outflows exclude the gross impact of exchanges, whereby a client changes positions within the same asset class.
(4)			Distributions represents returns of capital or returns on investments. To conform the reporting of Net Flows with the Assets Under Management or Supervision Rollforward presented in Management’s Discussion and Analysis of our annual and quarterly reports on SEC Form 10-K and 10-Q, beginning in the first quarter of 2026, distributions are no longer included in Net flows. This change had no impact on total AUM. Prior period amounts have been adjusted to conform with the current period presentation.
(5)			Market Impact and Other includes realized and unrealized gains and losses on portfolio investments and the impact of foreign currency changes for non-U.S. dollar denominated funds, and excludes any funds where market impact does not impact management fees.
(6)			As of March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, Alternatives and Solutions includes Parametric Long-Term period-end AUM of $524 billion, $528 billion, $509 billion, $466 billion and $424 billion, respectively. Parametric Long-Term products generally have lower average fee rates than other Alternatives and Solutions products.


Definition of U.S. GAAP to Non-GAAP Measures

(a)	We prepare our financial statements using U.S. GAAP. From time to time, we may disclose certain “non‐GAAP financial measures” in this document or in the course of our earnings releases, earnings and other conference calls, financial presentations, definitive proxy statements and other public disclosures. A “non‐GAAP financial measure” excludes, or includes, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. We consider the non‐GAAP financial measures we disclose to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an alternate means of assessing or comparing our financial condition, operating results and capital adequacy. These measures are not in accordance with, or a substitute for, U.S. GAAP and may be different from or inconsistent with non‐GAAP financial measures used by other companies. Whenever we refer to a non‐GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the U.S. GAAP financial measure and the non‐GAAP financial measure. In the periods prior to 2026, we present certain non‐GAAP financial measures that exclude the impact of mark‐to-market gains and losses on DCP investments from net revenues and compensation expenses. The impact of DCP is primarily reflected in our Wealth Management business segment results. These measures allow for better comparability of period‐to‐period underlying operating performance and revenue trends, especially in our Wealth Management business segment. By excluding the impact of these items, we are better able to describe the business drivers and resulting impact to net revenues and corresponding change to the associated compensation expenses. For more information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary” in the 2025 Form 10‐K.
(b)	The following are considered non‐GAAP financial measures:
	-	Tangible common equity represents common shareholders’ equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. In addition, we believe that certain ratios that utilize tangible common equity, such as return on average tangible common equity (“ROTCE”) and tangible book value per common share, also non‐GAAP financial measures, are useful for evaluating the operating performance and capital adequacy of the business period‐to‐period, respectively.
	-	ROTCE represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity.
	-	Tangible book value per common share represents tangible common equity divided by common shares outstanding.
	-	Segment return on average common equity and return on average tangible common equity represent net income applicable to Morgan Stanley by segment less preferred dividends allocated to each segment, annualized as a percentage of average common equity and average tangible common equity, respectively, allocated to each segment. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition).
	-	Net revenues excluding DCP represents net revenues adjusted for the impact of mark‐to‐market gains and losses on economic hedges associated with certain employee deferred cash‐based compensation plans.
	-	Compensation expense excluding DCP represents compensation adjusted for the impact related to certain employee deferred cash‐based compensation plans linked to investment performance.


Definitions of Performance Metrics and Terms

Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.

Page 1:
(a)			Provision for credit losses represents the provision for credit losses on loans held for investment and unfunded lending commitments.
(b)			Net income applicable to Morgan Stanley represents net income less net income applicable to nonredeemable noncontrolling interests.
(c)			Earnings applicable to Morgan Stanley common shareholders represents net income applicable to Morgan Stanley reduced by preferred stock dividends.

Page 2:
(a)			Return on average common equity represents annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average common equity.
(b)			Return on average tangible common equity represents a non‐GAAP financial measure.
(c)			Book value per common share represents common equity divided by period end common shares outstanding.
(d)			Tangible book value per common share represents a non‐GAAP financial measure.
(e)			Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
(f)			The Firm expense efficiency ratio represents total non‐interest expenses as a percentage of net revenues.

Page 3:
(a)			Liquidity Resources, which are primarily held within the Parent Company and its major operating subsidiaries, are comprised of high quality liquid assets (HQLA) and cash deposits with banks. The total amount of Liquidity Resources is actively managed by us considering the following components: unsecured debt maturity profile; balance sheet size and composition; funding needs in a stressed environment, inclusive of contingent cash outflows; legal entity, regional and segment liquidity requirements; regulatory requirements; and collateral requirements. Average Liquidity Resources represents the average daily balance for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025.
(b)			Our goodwill and intangible balances utilized in the calculation of tangible common equity are net of allowable mortgage servicing rights deduction.
(c)			Tangible common equity represents a non‐GAAP financial measure.
(d)			U.S. Bank refers to our U.S. Bank Subsidiaries, Morgan Stanley Bank, N.A. and Morgan Stanley Private Bank, National Association, and excludes transactions between the bank subsidiaries, as well as deposits from the Parent Company and affiliates.
(e)			Firmwide regional revenues reflect our consolidated net revenues on a managed basis. Further discussion regarding the geographic methodology for net revenues is disclosed in Note 22 to the consolidated financial statements included in the 2025 Form 10‐K.

Page 4:
(a)			Our attribution of average common equity to the business segments is based on the Required Capital framework, an internal capital adequacy measure. This framework is a risk‐based and leverage‐based capital measure, which is compared with our regulatory capital to ensure that we maintain an amount of going concern capital after absorbing potential losses from stress events, where applicable, at a point in time. The amount of capital allocated to the business segments is generally set at the beginning of each year and remains fixed throughout the year until the next annual reset unless a significant business change occurs (e.g., acquisition or disposition). We define the difference between our total average common equity and the sum of the average common equity amounts allocated to our business segments as Parent Company common equity. The Required Capital framework is based on our regulatory capital requirements. We continue to evaluate our Required Capital framework with respect to the impact of evolving regulatory requirements, as appropriate. For further discussion of the framework, refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the 2025 Form 10‐K.
(b)			Our risk‐based capital ratios are computed under each of (i) the standardized approaches for calculating credit risk and market risk risk‐weighted assets (RWAs) (“Standardized Approach”) and (ii) the applicable advanced approaches for calculating credit risk, market risk and operational risk RWAs (“Advanced Approach”). For information on the calculation of regulatory capital and ratios, and associated regulatory requirements, please refer to "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Regulatory Requirements" in the 2025 Form 10‐K.
(c)			Supplementary leverage ratio represents Tier 1 capital divided by the total supplementary leverage exposure.

Page 5:
(a)			Institutional Securities Equity and Fixed income net revenues include trading, net interest income (interest income less interest expense), asset management, commissions and fees, investments, and other revenues which are directly attributable to those businesses.
(b)			Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.
(c)			VaR represents the unrealized loss in portfolio value that, based on historically observed market risk factor movements, would have been exceeded with a frequency of 5%, or five times in every 100 trading days, if the portfolio were held constant for one day. Further discussion of the calculation of VaR and the limitations of our VaR methodology, is disclosed in "Quantitative and Qualitative Disclosures about Risk" included in the 2025 Form 10‐K.

Page 6:
(a)			Transactional revenues for the Wealth Management segment includes investment banking, trading, and commissions and fees revenues.
(b)			Net interest income represents interest income less interest expense.
(c)			Other revenues for the Wealth Management segment includes investments and other revenues.
(d)			Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.


Definitions of Performance Metrics and Terms

Our earnings releases, earnings conference calls, financial presentations and other communications may also include certain metrics that we believe to be useful to us, investors, analysts and other stakeholders by providing further transparency about, or an additional means of assessing, our financial condition and operating results.

Page 7:
(a)			Client assets represent those for which Wealth Management is providing services including financial advisor‐led brokerage, investment advisory, custody, cash management, and administrative services; self-directed brokerage and investment advisory services; financial and wealth planning services; workplace services, including stock plan administration, and retirement plan services.
(b)			Net new assets represent client asset inflows, including interest, dividends and asset acquisitions, less client asset outflows, and excluding the impact of business combinations/divestitures and the impact of fees and commissions.
(c)			Margin and other lending represents margin lending arrangements, which allow customers to borrow against the value of qualifying securities and other lending which includes non‐purpose securities‐based lending on non‐bank entities.
(d)			Deposits reflect liabilities sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries. Deposits include sweep deposit programs, savings and other deposits, and time deposits.
(e)			Annualized weighted average cost of deposits represents the total annualized weighted average cost of the various deposit products, including the effect of related hedging derivatives. The period end cost of deposits is based upon balances and rates as of March 31, 2026, December 31, 2025 and March 31, 2025. The period average is based on daily balances and rates for the period.
(f)			Advisor‐led client assets represent client assets in accounts that have a Wealth Management representative assigned.
(g)			Fee‐based client assets represent the amount of client assets where the basis of payment for services is a fee calculated on those assets.
(h)			Fee‐based asset flows include net new fee‐based assets (including asset acquisitions), net account transfers, dividends, interest and client fees, and exclude institutional cash management related activity. For a description of the Inflows and Outflows included in Fee‐based asset flows, see Fee‐based client assets rollforwards in the 2025 Form 10‐K.
(i)			Self‐directed client assets represent active accounts which are not advisor-led. Active accounts are defined as having at least $25 in assets.
(j)			Daily average revenue trades (DARTs) represent the total self‐directed trades in a period divided by the number of trading days during that period.
(k)			Self‐directed households represent the total number of households that include at least one active account with self‐directed assets. Individual households or participants that are engaged in one or more of our Wealth Management channels are included in each of the respective channel counts.
(l)			Stock plan unvested public assets represent the market value of public company securities at the end of the period, and excludes vested and unvested private company securities.
(m)			Stock plan participants represent total accounts with vested and/or unvested stock plan assets in the workplace channel. Individuals with accounts in multiple plans are counted as participants in each plan.

Page 8:
(a)			Asset management and related fees represents management and administrative fees, distribution fees, and performance‐based fees not in the form of carried interest. Asset management and related fees represents Asset management as reported on our consolidated income statement.
(b)			Performance‐based income and other includes performance‐based fees in the form of carried interest, gains and losses from investments, gains and losses from hedges on seed capital and certain employee deferred compensation plans, net interest, and other revenues. Performance‐based income and other represents investments, trading, net interest, and other revenues as reported on our consolidated income statement.
(c)			Pre‐tax margin represents income before provision for income taxes as a percentage of net revenues.

Page 9:
(a)			Investment Management Alternatives and Solutions asset class includes products in fund of funds, real estate, infrastructure, private equity and credit strategies, multi-asset portfolios, and tax-managed solutions, as well as systematic strategies that create custom investment solutions, including those offered by Parametric.
(b)			Investment Management net flows represent investments or commitments from new and existing clients in new or existing investment products, including reinvestments, and redemptions from clients’ funds. Net flows exclude both the gross impact of exchanges, whereby a client changes positions within the same asset class, and distributions, which represent returns of capital or returns on investments.
(c)			Overlay Services represents investment strategies that use passive exposure instruments to obtain, offset or substitute specific portfolio exposures, beyond those provided by the underlying holdings of the fund.
(d)			Total assets under management or supervision excludes shares of minority stake assets which represent the Investment Management business segment’s proportional share of assets managed by third-party asset managers in which we hold investments accounted for under the equity method.

Page 10 and 11:
(a)			Corporate loans include relationship and event-driven loans and typically consist of revolving lines of credit, term loans and bridge loans.
(b)			Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets.
(c)			Securities-based lending and other includes financing extended to sales and trading customers and corporate loans purchased in the secondary market.
(d)			Institutional Securities Lending Commitments principally include Corporate lending activity.


Supplemental Quantitative Details and Calculations

Page 1:
(1)	The following sets forth the Firm net revenue impact of mark‐to‐market gains and losses on investments associated with DCP and compensation expense impact related to DCP in prior year periods:
			4Q25		3Q25		2Q25		1Q25		4Q25 YTD
		Net revenues	$	17,890	$	18,224	$	16,792	$	17,739	$	70,645
		Adjustment for mark-to-market on DCP	5		(248)		(377)		149		(471)
		Adjusted Net revenues - non-GAAP	$	17,895	$	17,976	$	16,415	$	17,888	$	70,174

		Compensation expense	$	7,063	$	7,442	$	7,190	$	7,521	$	29,216
		Adjustment for mark-to-market on DCP	(95)		(300)		(371)		2		(764)
		Adjusted Compensation expense - non-GAAP	$	6,968	$	7,142	$	6,819	$	7,523	$	28,452

	-	Compensation expense for deferred cash-based compensation plans awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.
	-	Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. For certain unvested DCP awards, the Firm designates derivatives in cash flow hedges with changes in fair value recorded in other comprehensive income and later reclassified to compensation expense in line with the vesting period of the DCP awards. For other awards, including vested awards, the Firm uses economic hedging derivatives, with changes in fair value recorded in compensation expense. As a result, the Firm will no longer present non-GAAP measures of net revenues and compensation expense excluding DCP.
	-	Prior to the current quarter, we hedged DCP award obligations primarily with cash instruments and recorded the changes in the fair value, net of financing costs, within Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments were generally offset by changes in the fair value of investments recognized in net revenues, there was typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period.
	-	The use of derivatives as cash flow hedges of DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends without the need for non-GAAP financial measures.
	-	The tables above for the prior periods present non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to fair value gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans and non-GAAP adjusted Compensation expense for 2025 which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.

(2)	The Firm non-interest expenses by category are as follows:
			1Q26		4Q25		1Q25
		Compensation and benefits (a)	$	8,542	$	7,063	$	7,521
		Non-compensation expenses:
		Brokerage, clearing and exchange fees (b)	1,256		1,128		1,222
		Information processing and communications	1,148		1,160		1,050
		Professional services	602		769		674
		Occupancy and equipment	483		491		449
		Marketing and business development	310		358		238
		Other (b)(c)	1,130		1,143		906
		Total non-compensation expenses	4,929		5,049		4,539
		Total non-interest expenses	$	13,471	$	12,112	$	12,060

	(a)	During the quarters ended March 31, 2026 and 2025, as a result of March workforce management actions, were recognized severance costs of $178 million and $144 million, respectively, in Compensation and benefits expenses.The workforce management action was related to an effort to improve operational efficiency and manage performance, rather than a change in strategy or exit of businesses. The workforce management action occurred across our business segments and geographic regions and impacted approximately 2% of our global workforce at that time. We recorded severance costs of $94 million and $78 million in the Institutional Securities business segment, $61 million and $50 million in the Wealth Management business segment, and $23 million and $16 million in the Investment Management business segment for the quarters ended March 31, 2026 and 2025, respectively. These costs were incurred across all regions, with the majority in the Americas.
	(b)	Execution-related expenses represent Brokerage, Clearing and exchange fees and certain expenses reported in the Other expense category such as Regulatory fees, Transaction taxes and other fees which are directly associated with revenue-generating activities.
	(c)	For the quarters ended December 31, 2025 and March 31, 2025, Firm results included an FDIC Special Assessment of $(32) million and $3 million, respectively. This FDIC Special Assessment was reported in the business segments' results as follows: Institutional Securities: 4Q25: $(14) million, 1Q25: $1 million; Wealth Management: 4Q25: $(18) million, 1Q25: $2 million.

Page 2:
(1)	Refer to page 1(2) End Notes from above.
(2)	The income tax consequences related to employee share-based compensation payments are recognized in Provision for income taxes in the consolidated income statement, and may be either a benefit or a provision. The impacts of recognizing excess tax benefits upon conversion of awards are $327 million and $208 million for the first quarter of 2026 and 2025, respectively.

Page 3:
(1)	Includes loans held for investment (net of allowance), loans held for sale and also includes loans at fair value which are included in Trading assets on the balance sheet.
(2)	As of March 31, 2026, December 31, 2025 and March 31, 2025, the U.S. Bank investment securities portfolio included held to maturity investment securities of $43.2 billion, $44.2 billion and $47.2 billion, respectively.

Page 4:
(1)	Capital ratios are estimates as of the press release date, April 15, 2026.


Supplemental Quantitative Details and Calculations

Page 5:
(1)	Institutional Securities average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 1Q26: $455mm; 4Q25: 457mm; 1Q25: $457mm.

Page 6:
(1)	The following sets forth the Wealth Management segment net revenue impact of mark-to-market gains and losses on investments associated with DCP and compensation expense impact related to DCP in prior year periods:
			4Q25		3Q25		2Q25		1Q25		4Q25 YTD
		Net revenues	$	8,429	$	8,234	$	7,764	$	7,327	$	31,754
		Adjustment for mark-to-market on DCP	21		(206)		(294)		131		(348)
		Adjusted Net revenues - non-GAAP	$	8,450	$	8,028	$	7,470	$	7,458	$	31,406

		Compensation expense	$	4,416	$	4,388	$	4,147	$	3,999	$	16,950
		Adjustment for mark-to-market on DCP	(66)		(222)		(264)		17		(535)
		Adjusted Compensation expense - non-GAAP	$	4,350	$	4,166	$	3,883	$	4,016	$	16,415

	-	Compensation expense for deferred cash-based compensation plans awards is calculated based on the notional value of the award granted, adjusted for changes in the fair value of the referenced investments that employees select. Compensation expense is recognized over the vesting period relevant to each separately vesting portion of deferred awards.
	-	Beginning in the first quarter of 2026, hedges for Wealth Management DCP awards were primarily transitioned to derivative instruments. For certain unvested DCP awards, the Firm designates derivatives in cash flow hedges with changes in fair value recorded in other comprehensive income and later reclassified to compensation expense in line with the vesting period of the DCP awards. For other awards, including vested awards, the Firm uses economic hedging derivatives, with changes in fair value recorded in compensation expense. As a result, the Firm will no longer present non-GAAP measures of net revenues and compensation expense excluding DCP.
	-	Prior to the current quarter, we hedged DCP award obligations primarily with cash instruments and recorded the changes in the fair value, net of financing costs, within Transactional revenues in the Wealth Management business segment. Although changes in compensation expense resulting from changes in the fair value of the referenced investments were generally offset by changes in the fair value of investments recognized in net revenues, there was typically a timing difference between the immediate recognition of gains and losses on our investments and the deferred recognition of the related compensation expense over the vesting period.
	-	The use of derivatives as cash flow hedges of DCP awards is expected to substantially mitigate timing differences between the recognition of changes in the fair value of the hedging instruments and the deferred recognition of related DCP compensation expense over the vesting period. The expected mitigation of these timing differences, alongside the associated income statement changes described above, enables us to better present the operating performance and revenue trends without the need for non-GAAP financial measures.
	-	The tables above for the prior periods present non-GAAP adjusted Net revenues which excludes amounts recognized in Net revenues related to fair value gains and losses, net of financing costs, on investments associated with certain cash-based deferred compensation plans and non-GAAP adjusted Compensation expense for 2025 which excludes amounts recognized in Compensation expense associated with certain cash-based deferred compensation plans.

(2)	Wealth Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 1Q26: $13,220mm; 4Q25: 13,088mm; 1Q25: $13,088mm.

Page 7:
(1)	Wealth Management other lending included $2 billion of non-purpose securities based lending on non-bank entities in each period ended March 31, 2026, December 31, 2025 and March 31, 2025.
(2)	Details of deposits sourced from Wealth Management clients and other sources of funding on our U.S. Bank Subsidiaries for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, are as follows:
			1Q26		4Q25		1Q25
		Brokerage sweep deposits	$	144	$	142	$	136
		Other deposits	275		266		239
		Total deposits	$	419	$	408	$	375

(3)	The number of stock plan participants declined slightly in the second half of 2025, primarily as a result of the previously announced dispositions of the Firm’s EMEA stock plan business.

Page 8:
(1)	Investment Management average tangible common equity represents average common equity adjusted to exclude goodwill and intangible assets net of allowable mortgage servicing rights deduction. The adjustments are as follows: 1Q26: $9,467mm; 4Q25: $9,557mm; 1Q25: $9,557mm.

Page 9:
(1)	To conform the reporting of Net Flows with the Assets Under Management or Supervision Rollforward presented in Management’s Discussion and Analysis of our annual and quarterly reports on SEC Form 10-K and 10-Q, beginning in the first quarter of 2026, distributions, which represent returns of capital or returns on investments, are no longer included in Net flows. Distributions for long-term products were $3 billion, $4 billion and $3 billion, and distributions for Liquidity and Overlay Services were $3 billion, $4 billion and $4 billion for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Additionally, during the first quarter of 2026, certain products were reclassified among asset classes to more closely align reporting with underlying investment strategies, primarily reflecting a reclassification of certain tax-managed solutions from Equity to Alternatives and Solutions. These changes had no impact on total AUM. Prior period amounts have been adjusted to conform with the current period presentation.

Page 10:
(1)	For the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, Investment Management reflected loan balances of $465 million, $94 million and $255 million, respectively.


Supplemental Quantitative Details and Calculations

Page 11:
(1)	For the quarter ended March 31, 2026, the Allowance Rollforward for Loans and Lending Commitments is as follows:
			Institutional Securities		Wealth Management		Total
		Loans

		Allowance for Credit Losses (ACL)
		Beginning Balance - December 31, 2025	$	764	$	368	$	1,132
		Net Charge Offs	(27)		(10)		(37)
		Provision	76		6		82
		Other	(4)		1		(3)
		Ending Balance - March 31, 2026	$	809	$	365	$	1,174


		Lending Commitments

		Allowance for Credit Losses (ACL)
		Beginning Balance - December 31, 2025	$	780	$	18	$	798
		Net Charge Offs	—		—		—
		Provision	16		—		16
		Other	(7)		—		(7)
		Ending Balance - March 31, 2026	$	789	$	18	$	807


		Loans and Lending Commitments

		Allowance for Credit Losses (ACL)
		Beginning Balance - December 31, 2025	$	1,544	$	386	$	1,930
		Net Charge Offs	(27)		(10)		(37)
		Provision	92		6		98
		Other	(11)		1		(10)
		Ending Balance - March 31, 2026	$	1,598	$	383	$	1,981


Legal Notice

This Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.
The information should be read in conjunction with the Firm's first quarter earnings press release issued April 15, 2026.

Source: View Original Filing on SEC EDGAR

FAQ

How did Morgan Stanley (MS) perform financially in Q1 2026?

Morgan Stanley reported net revenues of $20.6 billion and net income applicable to the firm of $5.6 billion in Q1 2026. Diluted EPS rose to $3.43, up from $2.60 a year earlier, reflecting record revenues and significantly higher profitability.

What were Morgan Stanley’s key profitability metrics for Q1 2026?

The firm delivered a return on equity of 21.0% and a return on tangible common equity of 27.1% in Q1 2026. Its pre-tax margin reached 34%, while the firm expense efficiency ratio improved to 65%, indicating strong operating leverage.

How did Morgan Stanley’s business segments contribute to Q1 2026 results?

In Q1 2026, Institutional Securities generated net revenues of $10.7 billion, Wealth Management produced $8.5 billion, and Investment Management delivered $1.5 billion. Institutional Securities and Wealth Management both recorded strong year-over-year revenue growth and higher pre-tax income.

What were the key client asset and flow trends in Morgan Stanley’s Wealth Management segment?

Wealth Management ended Q1 2026 with total client assets of $7.3 trillion. The business reported $118.4 billion of net new assets and $53.7 billion of fee-based asset flows, supported by higher markets, strong client activity, and continued lending and deposit growth.

What capital and leverage ratios did Morgan Stanley report for Q1 2026?

At Q1 2026, Morgan Stanley’s standardized Common Equity Tier 1 capital ratio was 15.1% and the Tier 1 capital ratio was 16.8%. Under the advanced approach, the CET1 ratio was 16.0%, and the firm reported a supplementary leverage ratio of 5.0%.

How much stock did Morgan Stanley repurchase and what dividend was declared for Q1 2026?

During Q1 2026, Morgan Stanley repurchased $1.75 billion of common stock, or 10 million shares at an average price of $169.15. The Board also declared a $1.00 quarterly dividend per share, payable on May 15, 2026 to shareholders of record on April 30, 2026.

Did Morgan Stanley record any notable one-time costs in Q1 2026?

Yes. In Q1 2026, Morgan Stanley recognized $178 million of severance costs within compensation and benefits from a workforce management action affecting about 2% of its global workforce. These costs were spread across Institutional Securities, Wealth Management, and Investment Management.

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Record Q1 lifts Morgan Stanley (NYSE: MS) EPS to $3.43 and ROTCE 27.1%

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FAQ

How did Morgan Stanley (MS) perform financially in Q1 2026?

What were Morgan Stanley’s key profitability metrics for Q1 2026?

How did Morgan Stanley’s business segments contribute to Q1 2026 results?

What were the key client asset and flow trends in Morgan Stanley’s Wealth Management segment?

What capital and leverage ratios did Morgan Stanley report for Q1 2026?

How much stock did Morgan Stanley repurchase and what dividend was declared for Q1 2026?

Did Morgan Stanley record any notable one-time costs in Q1 2026?

Filing Exhibits & Attachments

Press Releases

Other Documents

Record Q1 lifts Morgan Stanley (NYSE: MS) EPS to $3.43 and ROTCE 27.1%

Rhea-AI Filing Summary

Positive

Negative

Insights

Banking and capital markets analyst positive

8-K Event Classification

Key Figures

Key Terms

Offering Details

FAQ

How did Morgan Stanley (MS) perform financially in Q1 2026?

What were Morgan Stanley’s key profitability metrics for Q1 2026?

How did Morgan Stanley’s business segments contribute to Q1 2026 results?

What were the key client asset and flow trends in Morgan Stanley’s Wealth Management segment?

What capital and leverage ratios did Morgan Stanley report for Q1 2026?

How much stock did Morgan Stanley repurchase and what dividend was declared for Q1 2026?

Did Morgan Stanley record any notable one-time costs in Q1 2026?

Filing Exhibits & Attachments

Press Releases

Other Documents