Morgan Stanley (MS) AI Stock Analysis

Morgan Stanley is a New York-based financial holding company providing financial products and services worldwide. It operates via three core segments: Institutional Securities, Wealth Management, and Investment Management. Institutional Securities delivers capital raising, financial advisory, underwriting, M&A advice, restructuring, project finance, sales and trading in equities and fixed income, commodities, foreign exchange, and prime brokerage. Wealth Management provides financial advisor-led brokerage, investment advisory, wealth planning, lending, residential real estate loans, banking, and retirement solutions. Investment Management offers equity, fixed income, liquidity, and alternative investment products.

Revenue expanded from $57.78B in FY2021 to $114.98B in FY2025, reflecting a 5-year revenue CAGR of 18.3%. Operating margins were 34.0% in FY2021, 22.6% in FY2022, 13.4% in FY2023, 17.1% in FY2024, and 19.1% in FY2025. Annual net income moved from $15.03B in FY2021 to $16.86B in FY2025, with diluted EPS rising to $10.21. For the trailing twelve months, revenue reached $79.79B and EPS stood at $12.61. In the latest quarter ending September 30, 2026, quarterly revenue grew 10.8% year-over-year while quarterly earnings expanded 8.2%.

As of September 30, 2026, Morgan Stanley held $120.10B in cash and short-term investments alongside total assets of $1.69T. Operating cash flow totaled $49.00B in FY2025, generating $46.10B in free cash flow after capital expenditures of $2.90B. In FY2025, the firm allocated capital toward $5.83B in share buybacks and $6.59B in dividends paid. Over the past 5 years, share count decreased by 12.0%.

Morgan Stanley trades at a trailing P/E of 14.3x, compared to the median of 14.2x for its S&P 500 Financial Services peers. Its forward P/E stands at 14.9x, above the peer median of 12.2x. The price-to-sales ratio is 3.6x compared to the peer median of 3.1x. Over the past year, the stock returned 15.4%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year span, its return of 107.3% topped the S&P 500 return of 83.0%.

Morgan Stanley pays an annual forward dividend of $4.60 per share, representing a 2.55% dividend yield with a payout ratio of 27.9%. Dividends are distributed quarterly and have been paid for 34 consecutive years. The annualized 5-year dividend growth rate is 22.4%, and the last ex-dividend date was October 30, 2026.

Wall Street coverage includes 9 Strong Buy, 2 Buy, and 14 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $213.27, representing an 18.1% upside compared to the last close of $180.57. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $12.81 on revenue of $82.18B. The firm has beaten EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of Morgan Stanley (MS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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