{"slug": "ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-blowout", "title": "AI stock frenzy drives record revenue at Morgan Stanley, capping big bank earnings blowout", "summary": "Morgan Stanley reported record quarterly net income of $5.58 billion and revenue of $21.35 billion, driven by an AI-fueled surge in trading and dealmaking. The bank's stock trading fees rose 69% to $6.3 billion, and equity underwriting jumped 70% to $851 million, both all-time highs. The results capped a strong earnings week for major Wall Street banks, which collectively earned nearly $55 billion in Q2.", "body_md": "An AI-powered trading and dealmaking binge boosted profits 58% at Morgan Stanley ([MS](https://finance.yahoo.com/quote/MS/)) in the second quarter.\n\nOn Wednesday, the Wall Street bank reported net income of $5.58 billion, or $3.46 per share. Net revenue soared 27% from the year-ago period to $21.35 billion. Both earnings per share and revenue are record highs for Morgan Stanley.\n\nQuarterly stock trading fees rose 69% from the year ago period to $6.3 billion, also the highest in the firm's history. Its equity underwriting businesses churned out $851 million, a 70% jump year over year and the highest since 2021.\n\nThe company exceeded analyst estimates for net income and revenue, capping off a banner week for Wall Street's biggest banks. JPMorgan Chase ([JPM](https://finance.yahoo.com/quote/JPM)), Wells Fargo ([WFC](https://finance.yahoo.com/quote/WFC)), Goldman Sachs ([GS](https://finance.yahoo.com/quote/GS/)), Bank of America ([BAC](https://finance.yahoo.com/quote/BAC/)), and Citigroup ([C](https://finance.yahoo.com/quote/C/)) all reported earnings that surpassed expectations on Tuesday.\n\nTogether, these six big banks earned nearly $55 billion in the second quarter, a 37% jump a year earlier.\n\nMorgan Stanley CEO Ted Pick called the results \"exceptional\" in a press release statement.\n\n\"We continue to accrete capital, giving us incremental flexibility to invest in our core businesses while generating strong returns for shareholders,\" Pick added.\n\nMorgan Stanley's stock price rose in early Wednesday trading after closing at a record high on Tuesday. Since the beginning of January, the stock has climbed more than 24%, outperforming its rivals.\n\nThe AI boom is turbocharging a cycle of Wall Street activities. More trading activity by institutions and retail investors is generating record quarters for their equity trading groups. AI-related IPOs, debt raising, and other deals are throwing off hefty underwriting and advising fees.\n\nMorgan Stanley bagged a leading position taking rocket maker SpaceX (SPCX) public during the quarter. It and rival Goldman Sachs each earned a $100 million cut of the underwriting fee.\n\nThe IPO activity helped the bank's wealth management platform shatter expectations by bringing in a record $148 billion in net new assets, compared to $59.2 billion in the year ago quarter. Revenue in that division rose 14% to $8.8 billion.\n\n*David Hollerith covers a range of developments throughout the financial sector, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.*\n\n**Click here for in-depth analysis of the latest stock market news and events moving stock prices**\n\n**Read the latest financial and business news from Yahoo Finance**", "url": "https://wpnews.pro/news/ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-blowout", "canonical_source": "https://ca.finance.yahoo.com/news/ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-earnings-blowout-122105807.html", "published_at": "2026-07-15 12:21:05+00:00", "updated_at": "2026-07-15 12:36:50.491337+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-startups", "ai-products"], "entities": ["Morgan Stanley", "JPMorgan Chase", "Wells Fargo", "Goldman Sachs", "Bank of America", "Citigroup", "Ted Pick", "SpaceX"], "alternates": {"html": "https://wpnews.pro/news/ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-blowout", "markdown": "https://wpnews.pro/news/ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-blowout.md", "text": "https://wpnews.pro/news/ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-blowout.txt", "jsonld": "https://wpnews.pro/news/ai-stock-frenzy-drives-record-revenue-at-morgan-stanley-capping-big-bank-blowout.jsonld"}}