MORGAN STANLEY
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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19. Segment, Geographic and Revenue Information
Table of Contents
Notes to Consolidated Financial Statements(Unaudited)
- Segment, Geographic and Revenue Information
Selected Financial Information by Business Segment
| Three Months Ended March 31, 2026 | |||||
|---|---|---|---|---|---|
| $ in millions | IS | WM | IM | I/E | Total |
| Investment banking | $2,116 | $224 | $— | $(51) | $2,289 |
| Trading | 6,598 | 120 | (10) | 22 | 6,730 |
| Investments | 47 | 33 | 66 | — | 146 |
| Commissions and fees1 | 1,005 | 783 | — | (98) | 1,690 |
| Asset management1,2 | 233 | 5,079 | 1,496 | (78) | 6,730 |
| Other | 182 | 110 | 3 | (3) | 292 |
| Total non-interest revenues | 10,181 | 6,349 | 1,555 | (208) | 17,877 |
| Interest income | 11,822 | 3,646 | 22 | (217) | 15,273 |
| Interest expense | 11,282 | 1,476 | 42 | (230) | 12,570 |
| Net interest | 540 | 2,170 | (20) | 13 | 2,703 |
| Net revenues | $10,721 | $8,519 | $1,535 | $(195) | $20,580 |
| Provision for credit losses | $92 | $6 | $— | $— | $98 |
| Compensation and benefits3 | 3,264 | 4,648 | 630 | — | 8,542 |
| Non-compensation expenses3 | 3,204 | 1,274 | 625 | (174) | 4,929 |
| Total non-interest expenses | $6,468 | $5,922 | $1,255 | $(174) | $13,471 |
| Income before provision for income taxes | 4,161 | 2,591 | 280 | (21) | 7,011 |
| Provision for income taxes | 796 | 544 | 38 | (5) | 1,373 |
| Net income | 3,365 | 2,047 | 242 | (16) | 5,638 |
| Net income applicable to noncontrolling interests | 71 | — | — | — | 71 |
| Net income applicable to Morgan Stanley | $3,294 | $2,047 | $242 | $(16) | $5,567 |
| Pre-tax margin4 | 39% | 30% | 18% | N/M | 34% |
| Three Months Ended March 31, 2025 | |||||
|---|---|---|---|---|---|
| $ in millions | IS | WM | IM | I/E | Total |
| Investment banking | $1,559 | $190 | $— | $(38) | $1,711 |
| Trading | 5,113 | (12) | (7) | 17 | 5,111 |
| Investments | 149 | 33 | 187 | — | 369 |
| Commissions and fees1 | 869 | 695 | — | (83) | 1,481 |
| Asset management1,2 | 191 | 4,396 | 1,451 | (75) | 5,963 |
| Other | 633 | 123 | — | (5) | 751 |
| Total non-interest revenues | 8,514 | 5,425 | 1,631 | (184) | 15,386 |
| Interest income | 10,073 | 3,959 | 23 | (307) | 13,748 |
| Interest expense | 9,604 | 2,057 | 52 | (318) | 11,395 |
| Net interest | 469 | 1,902 | (29) | 11 | 2,353 |
| Net revenues | $8,983 | $7,327 | $1,602 | $(173) | $17,739 |
| Provision for credit losses | $91 | $44 | $— | $— | $135 |
| Compensation and benefits3 | 2,854 | 3,999 | 668 | — | 7,521 |
| Non-compensation expenses3 | 2,757 | 1,333 | 611 | (162) | 4,539 |
| Total non-interest expenses | $5,611 | $5,332 | $1,279 | $(162) | $12,060 |
| Income before provision for income taxes | 3,281 | 1,951 | 323 | (11) | 5,544 |
| Provision for income taxes | 696 | 419 | 61 | (3) | 1,173 |
| Net income | 2,585 | 1,532 | 262 | (8) | 4,371 |
| Net income applicable to noncontrolling interests | 56 | — | — | — | 56 |
| Net income applicable to Morgan Stanley | $2,529 | $1,532 | $262 | $(8) | $4,315 |
| Pre-tax margin4 | 37% | 27% | 20% | N/M | 31% |
Substantially all revenues are from contracts with customers.
Includes certain fees that may relate to services performed in prior periods.
The significant expense categories and amounts align with the segment-level information that is regularly provided to the Firm’s chief operating decision maker (“CODM”).
Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.
For a discussion about the Firm’s business segments, see Note 22 to the financial statements in the 2025 Form 10-K.
Detail of Investment Banking Revenues
| Three Months EndedMarch 31, | ||
|---|---|---|
| $ in millions | 2026 | 2025 |
| Institutional Securities Advisory | $978 | $563 |
| Institutional Securities Underwriting | 1,138 | 996 |
| Firm Investment banking revenues from contracts with customers | 86% | 81% |
Trading Revenues by Product Type
| Three Months EndedMarch 31, | ||
|---|---|---|
| $ in millions | 2026 | 2025 |
| Interest rate | $926 | $1,373 |
| Foreign exchange | 673 | 628 |
| Equity1 | 3,967 | 3,027 |
| Commodity and other | 1,111 | 324 |
| Credit | 53 | (241) |
| Total | $6,730 | $5,111 |
- Dividend income is included within equity contracts.
The previous table summarizes realized and unrealized gains and losses primarily related to the Firm’s Trading assets and liabilities, from derivative and non-derivative financial instruments, included in Trading revenues in the income
| 73 | March 2026 Form 10-Q |
Table of Contents
Notes to Consolidated Financial Statements(Unaudited)
statement. The Firm generally utilizes financial instruments across a variety of product types in connection with its market-making and related risk management strategies. The trading revenues presented in the table are not representative of the manner in which the Firm manages its business activities and are prepared in a manner similar to the presentation of trading revenues for regulatory reporting purposes.
Investment Management Investments Revenues—Net Cumulative Unrealized Carried Interest
| $ in millions | AtMarch 31,2026 | AtDecember 31,2025 |
|---|---|---|
| Net cumulative unrealized performance-based fees at risk of reversing | $942 | $926 |
The Firm’s portion of net cumulative performance-based fees in the form of unrealized carried interest, for which the Firm is not obligated to pay compensation, is at risk of reversing when the returns in certain funds fall below specified performance targets. See Note 13 for information regarding general partner guarantees, which include potential obligations to return performance fee distributions previously received.
Investment Management Asset Management Revenues—Reduction of Fees Due to Fee Waivers
| Three Months EndedMarch 31, | ||
|---|---|---|
| $ in millions | 2026 | 2025 |
| Fee waivers | $34 | $30 |
The Firm waives a portion of its fees in the Investment Management business segment from certain registered money market funds that comply with the requirements of Rule 2a-7 of the Investment Company Act of 1940.
Certain Other Fee Waivers
Separately, the Firm’s employees, including its senior officers, may participate on the same terms and conditions as other investors in certain funds that the Firm sponsors primarily for client investment, and the Firm may waive or lower applicable fees and charges for its employees.
Other Expenses—Transaction Taxes
| Three Months EndedMarch 31, | ||
|---|---|---|
| $ in millions | 2026 | 2025 |
| Transaction taxes | $517 | $266 |
Transaction taxes are composed of securities transaction taxes and stamp duties, which are levied on the sale or purchase of securities listed on recognized stock exchanges in certain markets. These taxes are imposed mainly on trades of equity securities in Asia and EMEA. Similar transaction taxes are levied on trades of listed derivative instruments in certain countries.
Net Revenues by Region
| Three Months EndedMarch 31, | ||
|---|---|---|
| $ in millions | 2026 | 2025 |
| Americas | $14,591 | $13,103 |
| EMEA | 2,641 | 2,291 |
| Asia | 3,348 | 2,345 |
| Total | $20,580 | $17,739 |
For a discussion about the Firm’s geographic net revenues, see Note 22 to the financial statements in the 2025 Form 10-K.
Revenues Recognized from Prior Services
| Three Months EndedMarch 31, | ||
|---|---|---|
| $ in millions | 2026 | 2025 |
| Non-interest revenues | $924 | $595 |
The previous table includes revenues from contracts with customers recognized where some or all services were performed in prior periods. These revenues primarily include investment banking advisory fees.
Receivables from Contracts with Customers
| $ in millions | AtMarch 31,2026 | AtDecember 31,2025 |
|---|---|---|
| Customer and other receivables | $2,826 | $3,002 |
Receivables from contracts with customers, which are included within Customer and other receivables in the balance sheet, arise when the Firm has both recorded revenues and the right per the contract to bill the customer.
Assets by Business Segment
| $ in millions | AtMarch 31,2026 | AtDecember 31,2025 |
|---|---|---|
| Institutional Securities1 | $1,235,197 | $969,553 |
| Wealth Management1 | 328,397 | 433,017 |
| Investment Management | 17,824 | 17,700 |
| Total2 | $1,581,418 | $1,420,270 |
In connection with MSBNA’s acquisition of MSESE and the merging of the Fixed Income business of MSCS into MSBNA, the Firm updated its segment balance sheet allocation methodology in the first quarter of 2026. As a result of this update, certain assets which were previously included in the Wealth Management balance sheet are included within the Institutional Securities balance sheet beginning in the current quarter. This change resulted in an increase to Institutional Securities assets and a decrease to Wealth Management assets of $111 billion as of March 31, 2026 with no impact on total Firm assets.
Parent assets have been fully allocated to the business segments.
| March 2026 Form 10-Q | 74 |
|---|
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