MS2026 Q1Financial Services

5mo

Enterprise AI adoption and adviser co-pilot implications

Management described AI as additive, framing it as a co-pilot that will improve adviser effectiveness and client outcomes rather than replace advisers.
The firm is permissioned on an Anthropic preview (Claude Mythos) and is piloting AI across infrastructure, trading and adviser workflows.
Executives flagged increased cyber and model risks tied to AI and said cyber resiliency is a top institutional priority as models are adopted.
Wealth initiatives will use AI to capture historical context and improve productivity, supporting corridors or 'super agents' for advisers.
Management expects continuous improvement from AI to drive both efficiency gains and higher-quality client engagement over multiple years.

MS2026 Q1Financial Services

5mo

Financial Performance Summary

Asset Management/AUM: total client assets across wealth and investment management exceed $9 trillion and Investment Management AUM stands at $1.9 trillion.
CET1 ratio was 15.1% versus a regulatory requirement of 11.8%, implying a capital buffer of more than 300 basis points.
Institutional Securities delivered a record $10.7 billion in revenues, including over $5.0 billion in equities.
Net new assets were $118 billion and fee-based flows reached a record $54 billion this quarter.
Opportunistic buyback of $1.75 billion this quarter and $15 billion of capital accretion over the last nine quarters.
Record quarterly revenues of $20.6 billion and EPS ex DVA of $3.43, with ROTCE of 27.1% demonstrating strong operating leverage.
Wealth Management reported record revenues of $8.5 billion and pretax margin of 30.4%.

MS2026 Q1Financial Services

5mo

$20.6B revenue, $3.43 EPS

Record quarterly revenue and EPS

Company reported a record quarter with revenues of $20.6 billion and EPS of $3.43, driven by integrated firm activity across markets and wealth.

MS2026 Q1Financial Services

5mo

Financial Performance Summary

Asset Management/AUM: total client assets across wealth and investment management exceed $9 trillion and Investment Management AUM stands at $1.9 trillion.
CET1 ratio was 15.1% versus a regulatory requirement of 11.8%, implying a capital buffer of more than 300 basis points.
Institutional Securities delivered a record $10.7 billion in revenues, including over $5.0 billion in equities.
Net new assets were $118 billion and fee-based flows reached a record $54 billion this quarter.
Opportunistic buyback of $1.75 billion this quarter and $15 billion of capital accretion over the last nine quarters.
Record quarterly revenues of $20.6 billion and EPS ex DVA of $3.43, with ROTCE of 27.1% demonstrating strong operating leverage.
Wealth Management reported record revenues of $8.5 billion and pretax margin of 30.4%.

MS2026 Q1Financial Services

5mo

$20.6B revenue, $3.43 EPS

Record quarterly revenue and EPS

Company reported a record quarter with revenues of $20.6 billion and EPS of $3.43, driven by integrated firm activity across markets and wealth.

More from MS Q1 2026

Morgan Stanley: Enterprise AI adoption and adviser co-pilot implications