v3.25.4
Segment, Geographic and Revenue Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment, Geographic and Revenue Information Segment, Geographic and Revenue Information
The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization, which is consistent with the approach used by the Firm’s chief operating decision maker (“CODM”) to assess the Firm’s financial performance. The Firm provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Wealth
Management and Investment Management. For a further discussion of the business segments, see Note 1.
Revenues and expenses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are generally allocated based on each business segment’s respective net revenues, non-interest expenses or other relevant measures.
As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties for purposes of segment disclosures, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results.
The Firm’s CODM is its Chief Executive Officer, who evaluates segment performance and allocates resources based on numerous business, strategic and financial considerations. The CODM’s financial considerations include analysis of multiple segment profit measures, such as Income before provision for income taxes and Pre-tax margin. Furthermore, the CODM evaluates certain additional segment performance metrics including Return on average common equity. The segment profit measures are calculated in accordance with U.S. GAAP and are consistent with the amounts presented in the Firm’s consolidated income statement.

The CODM’s review of the profit measures includes evaluation of segment profitability and assessment of actual results compared to budget. These measures are regularly provided to the CODM and are a component of a multifaceted decision-making process regarding segment performance as well as resource and capital allocation.
Selected Financial Information by Business Segment
 2025
$ in millionsISWMIMI/ETotal
Investment banking$7,619 $760 $— $(180)$8,199 
Trading17,721 855 (98)78 18,556 
Investments562 130 659 — 1,351 
Commissions and fees1
3,302 2,973 — (339)5,936 
Asset management1, 2
753 18,627 6,068 (303)25,145 
Other918 498 12 (16)1,412 
Total non-interest revenues30,875 23,843 6,641 (760)60,599 
Interest income43,684 16,311 57 (989)59,063 
Interest expense41,479 8,400 173 (1,035)49,017 
Net interest2,205 7,911 (116)46 10,046 
Net revenues$33,080 $31,754 $6,525 $(714)$70,645 
Provision for credit losses$302 $47 $— $— $349 
Compensation and benefits3
9,785 16,950 2,481 — 29,216 
Non-compensation expenses3
11,756 5,464 2,566 (660)19,126 
Total non-interest expenses$21,541 $22,414 $5,047 $(660)$48,342 
Income before provision for income taxes$11,237 $9,293 $1,478 $(54)$21,954 
Provision for income taxes2,430 2,163 349 (13)4,929 
Net income8,807 7,130 1,129 (41)17,025 
Net income applicable to noncontrolling interests157 — 7 — 164 
Net income applicable to Morgan Stanley$8,650 $7,130 $1,122 $(41)$16,861 
Pre-tax margin4
34 %29 %23 %N/M31 %
 2024
$ in millionsISWMIMI/ETotal
Investment banking$6,170 $653 $— $(118)$6,705 
Trading15,967 733 9 54 16,763 
Investments406 85 333 — 824 
Commissions and fees1
2,905 2,478 — (289)5,094 
Asset management1, 2
646 16,501 5,627 (275)22,499 
Other607 657 14 (13)1,265 
Total non-interest revenues26,701 21,107 5,983 (641)53,150 
Interest income
39,332 16,247 112 (1,556)54,135 
Interest expense
37,953 8,934 234 (1,597)45,524 
Net interest1,379 7,313 (122)41 8,611 
Net revenues$28,080 $28,420 $5,861 $(600)$61,761 
Provision for credit losses$202 $62 $— $— $264 
Compensation and benefits3
8,669 15,207 2,302 — 26,178 
Non-compensation expenses3
10,460 5,411 2,422 (570)17,723 
Total non-interest expenses$19,129 $20,618 $4,724 $(570)$43,901 
Income before provision for income taxes$8,749 $7,740 $1,137 $(30)$17,596 
Provision for income taxes1,947 1,852 275 (7)4,067 
Net income6,802 5,888 862 (23)13,529 
Net income applicable to noncontrolling interests136 — 3 — 139 
Net income applicable to Morgan Stanley$6,666 $5,888 $859 $(23)$13,390 
Pre-tax margin4
31 %27 %19 %N/M28 %
 2023
$ in millionsISWMIMI/ETotal
Investment banking$4,578 $454 $— $(84)$4,948 
Trading14,468 823 (59)31 15,263 
Investments177 62 334 — 573 
Commissions and fees1
2,540 2,279 — (282)4,537 
Asset management1,2
596 14,019 5,231 (229)19,617 
Other480 513 (7)(11)975 
Total non-interest revenues22,839 18,150 5,499 (575)45,913 
Interest income
32,383 15,015 135 (1,684)45,849 
Interest expense
32,162 6,897 264 (1,704)37,619 
Net interest221 8,118 (129)20 8,230 
Net revenues$23,060 $26,268 $5,370 $(555)$54,143 
Provision for credit losses$401 $131 $— $— $532 
Compensation and benefits3
8,369 13,972 2,217 — 24,558 
Non-compensation expenses3
9,814 5,635 2,311 (520)17,240 
Total non-interest expenses$18,183 $19,607 $4,528 $(520)$41,798 
Income before provision for income taxes$4,476 $6,530 $842 $(35)$11,813 
Provision for income taxes884 1,508 199 (8)2,583 
Net income3,592 5,022 643 (27)9,230 
Net income applicable to noncontrolling interests139 — 4 — 143 
Net income applicable to Morgan Stanley$3,453 $5,022 $639 $(27)$9,087 
Pre-tax margin4
19 %25 %16 %N/M22 %
1.Substantially all revenues are from contracts with customers.
2.Includes certain fees that may relate to services performed in prior periods.
3.The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
4.Pre-tax margin represents income before provision for income taxes as a percentage of net revenues.
Detail of Investment Banking Revenues
$ in millions202520242023
Institutional Securities—Advisory$2,888 $2,378 $2,244 
Institutional Securities—Underwriting4,731 3,792 2,334 
Firm Investment banking revenues from contracts with customers84 %90 %91 %
Trading Revenues by Product Type
$ in millions202520242023
Interest rate$4,358 $5,901 $4,646 
Foreign exchange1,698 1,170 1,054 
Equity1
11,937 9,005 8,929 
Commodity and other1,967 2,003 1,624 
Credit(1,404)(1,316)(990)
Total$18,556 $16,763 $15,263 
1.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 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 millionsAt
December 31,
2025 		At
December 31,
2024
Net cumulative unrealized performance-based fees at risk of reversing$926 $796 
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 14 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
$ in millions202520242023
Fee waivers$117 $99 $93 
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
$ in millions202520242023
Transaction taxes$1,289 $926 $866 
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
$ in millions202520242023
Americas$52,897 $46,929 $41,651 
EMEA8,328 7,197 6,058 
Asia9,420 7,635 6,434 
Total$70,645 $61,761 $54,143 
Income before Provision for Income Taxes
$ in millions202520242023
U.S.$15,846 $12,526 $8,334 
Non-U.S.1
6,108 5,070 3,479 
Total$21,954 $17,596 $11,813 
1.Non-U.S. income is defined as income generated from operations located outside the U.S.
The Firm operates in both U.S. and non-U.S. markets. The Firm’s non-U.S. business activities are principally conducted and managed through EMEA and Asia locations. The net revenues disclosed in the previous table reflect the regional view of the Firm’s consolidated net revenues on a managed basis, based on the following methodology:
Institutional Securities: Client location for advisory and equity underwriting, syndicate desk location for debt underwriting, trading desk location for sales and trading.
Wealth Management: Americas, where representatives operate.
Investment Management: Client location, except certain closed-end funds, which are based on asset location.
Revenues Recognized from Prior Services
$ in millions202520242023
Non-interest revenues$2,303 $1,870 $1,778 
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 millionsAt
December 31,
2025 		At
December 31,
2024
Customer and other receivables$3,002 $2,628 
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 millionsAt
December 31,
2025 		At
December 31,
2024
Institutional Securities$969,553 $796,608 
Wealth Management433,017 400,848 
Investment Management17,700 17,615 
Total1
$1,420,270 $1,215,071 
1. Parent assets have been fully allocated to the business segments.
Total Assets by Region
$ in millionsAt
December 31,
2025 		At
December 31,
2024
Americas994,553 $893,170 
EMEA228,870 179,187 
Asia196,847 142,714 
Total$1,420,270 $1,215,071