Morgan Stanley (MS) Q2 2025 Earnings Call Transcript

Morgan Stanley reported robust Q2 2025 results, achieving $16.8 billion in revenue, $2.13 in EPS, and an 18.2% return on tangible equity. CEO Ted Pick noted the quarter experienced initial market volatility due to U.S. trade policy, which transitioned into increased engagement and a capital markets rebound in the latter half. This strong quarterly performance contributed to a very solid first half of 2025, totaling $34.5 billion in revenue and $4.73 in EPS.

Analysis

Morgan Stanley (MS) reported a robust second quarter for 2025, delivering revenue of $16.8 billion, earnings per share (EPS) of $2.13, and a strong return on tangible equity of 18.2%. According to CEO Ted Pick, the firm successfully navigated a quarter of two distinct halves, which began with market volatility tied to U.S. trade policy and concluded with a steady rebound in capital markets and increased client engagement. This performance highlights the firm's resilience in a fluctuating macroeconomic environment. The strong quarter capped a very solid first half of 2025, which saw total revenues reach $34.5 billion and EPS total $4.73, indicating significant operational momentum heading into the second half of the year.

Key Decisions for Investors

• Given the firm's strong top-line and bottom-line performance, coupled with an 18.2% return on tangible equity, investors should view these results as a validation of the current management strategy and its execution.
• The explicit mention of U.S. trade policy as a source of market volatility suggests that investors should closely monitor this external factor as a key risk that could impact future performance.
• The rebound in capital markets activity noted by the CEO is a critical tailwind; investors should assess the sustainability of this market engagement as a primary driver for the firm's performance in the upcoming quarters.