Morgan Stanley's Q3 Earnings: A Record-Breaking Performance

Author: Logan Wright Updated: 10-16-2025 09:43 AM

Morgan Stanley Reports Impressive Q3 Performance

Morgan Stanley (NYSE: MS) has unveiled remarkable results for its recent third-quarter earnings, surpassing market expectations significantly. This performance has led to a surge in interest from analysts, prompting them to adjust their price targets favorably.

Strong Financial Results

For the third quarter, Morgan Stanley's earnings per share (EPS) reached $2.80, a notable increase from $1.88 in the previous year. This earnings report exceeded analysts' expectations, which anticipated an EPS of $2.08. Additionally, net earnings soared to $4.61 billion, compared to $3.19 billion from the previous year, showcasing robust financial health.

Revenue Growth

The U.S. bank reported a substantial revenue of $18.22 billion, reflecting an 18% increase year-over-year. This revenue figure also surpassed the consensus estimate of $16.70 billion, indicating strong operational performance.

Decreased Provisions for Credit Losses

Another positive aspect of the report was the decrease in provisions for credit losses, which had been a point of concern in prior earnings reports. This reduction can be largely attributed to an enhanced macroeconomic environment, coupled with lower provisions linked to portfolio growth during the quarter.

Stock Performance and Analyst Reactions

Following the release of these impressive earnings, Morgan Stanley shares closed at $162.65, reflecting investor confidence. Analysts reacted positively to the results, adjusting their price targets upward to reflect the stronger outlook.

Analyst Ratings Upgraded

Several notable analysts have revised their price targets for Morgan Stanley as a result of this favorable earnings report:

Jefferies analyst Daniel Fannon maintained a "Buy" rating, increasing his price target from $175 to $186 to reflect the bank's strong performance.
Barclays analyst Jason Goldberg also reaffirmed an "Overweight" rating, lifting the price target from $156 to $183.
Citigroup analyst Keith Horowitz maintained a "Neutral" rating, adjusting the price target from $155 to $170.

Outlook and Considerations for Investors

Investors considering adding Morgan Stanley stock to their portfolios can take encouragement from these optimistic projections. The upward revisions by multiple analysts indicate a shared belief in Morgan Stanley's continued growth and profitability. As the financial landscape evolves, investors should monitor how the bank adapts to market conditions and capitalizes on opportunities for growth.

Frequently Asked Questions

What were Morgan Stanley's earnings for Q3?

Morgan Stanley reported earnings of $2.80 per share for the third quarter.

How did the revenue perform in the latest quarter?

The bank achieved revenue of $18.22 billion, surpassing analysts' estimates.

What are analysts saying about MS stock?

Analysts have raised their price targets for Morgan Stanley, reflecting a positive outlook on the stock.

What factors contributed to the decrease in credit losses?

The decrease is attributed to an improved macroeconomic environment and lower provisions related to portfolio growth.

How did the stock perform after the earnings announcement?

Morgan Stanley shares closed at $162.65 following the announcement, indicating strong investor confidence.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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