Morgan Stanley delivered earnings that surpassed expectations, with $2.80 per share on $18.22 billion in revenue its biggest beat in five years. The strong quarter reflected robust performance in wealth management and a rebound in investment banking, partially offset by softer trading revenue. Fee-based income continued to anchor the firm’s stability as client assets under management climbed, supported by steady inflows despite market uncertainty. CEO Ted Pick credited the results to the firm’s diversified platform and disciplined execution.

Still, Morgan Stanley adopted a cautious outlook for the remainder of the year, noting uneven dealmaking activity and the impact of fluctuating market sentiment on advisory pipelines. The firm’s focus on scaling its wealth and investment management units positions it well for long-term growth, with less reliance on cyclical trading gains. The quarter reflected a continued evolution from a trading-heavy model to a more stable, client-centric business structure.