Analysts Issue Forecasts for Morgan Stanley FY2026 Earnings

Key Points

• Erste Group Bank lowered its FY2026 EPS forecast for Morgan Stanley to $12.79 from $12.83, while maintaining a “Hold” rating. The new estimate remains above the broader consensus of $12.66 per share.
• Morgan Stanley’s latest quarterly results exceeded expectations, with EPS of $3.46 versus the $2.89 consensus and revenue of $21.35 billion, up 27.1% year over year.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and average price target of $219.43, although UBS and Wells Fargo recently reduced their targets. Morgan Stanley also raised its quarterly dividend to $1.15 per share and authorized a $20 billion share-repurchase program.

Morgan Stanley (NYSE:MS - Free Report) - Analysts at Erste Group Bank dropped their FY2026 EPS estimates for Morgan Stanley in a report released on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the financial services provider will post earnings of $12.79 per share for the year, down from their previous estimate of $12.83. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Morgan Stanley's current full-year earnings is $12.66 per share.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, topping analysts' consensus estimates of $2.89 by $0.57. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm had revenue of $21.35 billion during the quarter, compared to analyst estimates of $19.67 billion. During the same quarter last year, the business earned $2.13 earnings per share. The company's quarterly revenue was up 27.1% on a year-over-year basis.

Several other equities analysts have also recently weighed in on the company. UBS Group reduced their price target on Morgan Stanley from $260.00 to $236.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Wells Fargo & Company decreased their target price on Morgan Stanley from $240.00 to $223.00 and set an "equal weight" rating on the stock in a research note on Friday, September 25th. JPMorgan Chase & Co. raised their price objective on shares of Morgan Stanley from $187.00 to $195.00 and gave the company a "neutral" rating in a research report on Thursday, July 16th. Freedom Capital upgraded Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Finally, Weiss Ratings upgraded shares of Morgan Stanley from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $219.43.

Morgan Stanley Trading Down 0.0%

NYSE:MS opened at $189.94 on Tuesday. Morgan Stanley has a 1 year low of $151.88 and a 1 year high of $232.25. The stock's fifty day moving average price is $207.10 and its two-hundred day moving average price is $203.20. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.79 and a quick ratio of 0.79. The company has a market cap of $299.60 billion, a P/E ratio of 15.36, a P/E/G ratio of 1.26 and a beta of 1.22.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MS. Marquette Asset Management LLC boosted its holdings in shares of Morgan Stanley by 143.4% in the 2nd quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider's stock valued at $27,000 after buying an additional 76 shares in the last quarter. Atlatl Advisers LLC purchased a new position in Morgan Stanley in the 2nd quarter worth $28,000. Hughes Financial Services LLC raised its stake in shares of Morgan Stanley by 55.7% in the second quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock worth $29,000 after purchasing an additional 49 shares during the last quarter. Purpose Unlimited Inc. acquired a new stake in Morgan Stanley during the 4th quarter valued at approximately $25,000. Finally, Security National Bank of SO Dak acquired a new position in Morgan Stanley during the second quarter valued at $31,000. 84.19% of the stock is currently owned by institutional investors.

Morgan Stanley Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were issued a dividend of $1.15 per share. This is a positive change from Morgan Stanley's previous quarterly dividend of $1.00. The ex-dividend date was Friday, July 31st. This represents a $4.60 dividend on an annualized basis and a dividend yield of 2.4%. Morgan Stanley's dividend payout ratio (DPR) is currently 37.19%.

Morgan Stanley announced that its board has approved a stock repurchase program on Wednesday, June 24th that authorizes the company to buy back $20.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 5.6% of its shares through open market purchases. Share buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Key Headlines Impacting Morgan Stanley

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Morgan Stanley’s earnings release is scheduled for Wednesday morning, creating a near-term catalyst. Investors will look for evidence that strong wealth-management inflows, equity-market activity and investment-banking revenue can offset pressure from higher funding costs. Morgan Stanley Reports Earnings Tomorrow: What To Expect
• Positive Sentiment: The firm’s research franchise remains influential: Morgan Stanley named eBay a top internet pick and raised its price target, helping drive gains in eBay shares. While not a direct earnings benefit, the call highlights the reach of MS’s equity-research and advisory businesses. eBay Named Morgan Stanley Top Pick
• Neutral Sentiment: Morgan Stanley analysts upgraded Sallie Mae to a Buy-equivalent rating and downgraded Ally Financial to a Hold-equivalent rating. These calls may support the firm’s research profile but are unlikely to materially change Morgan Stanley’s near-term financial results. Sallie Mae upgraded at Morgan Stanley
• Negative Sentiment: Market commentary warns that rising Treasury yields, a stronger dollar and elevated energy prices are tightening U.S. financial conditions. That backdrop could pressure borrowing demand, investment-banking activity and trading volumes, although MS strategists said the bond market may be doing some of the Federal Reserve’s work. Morgan Stanley strategist on bond-market conditions
• Negative Sentiment: Investors are also weighing expectations for fiscal 2027 earnings amid uncertainty over whether high rates will curb dealmaking and lending growth. With shares trading below their recent moving averages, an earnings miss or cautious outlook could add to selling pressure. Analysts Set Expectations for Morgan Stanley FY2027 Earnings

Morgan Stanley Company Profile

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.