Morgan Stanley's Q3 Beat Driven by Trading Activity, but Diversification is Key to Sustain Trends, Oppenheimer Says

12:07 PM EDT, 10/15/2026 (MT Newswires) -- Morgan Stanley's (MS) Q3 beat was driven by trading activity, but diversification is key to sustaining the trend as rising industry-wide prime brokerage balances create concerns about how revenue would fare if market positions fell, Oppenheimer said in a Thursday research report. Morgan Stanley reported Q3 earnings Wednesday of $3.03 per diluted share, up from $2.80 a year earlier, and higher than the $2.95 expected by analysts polled by FactSet. Net revenue for the quarter ended Sept. 30 was $20.34 billion, up from $18.22 billion a year earlier. Analysts expected $19.93 billion. Analysts wrote that they raised their fiscal 2027 EPS estimate to $14.19 from $13.95 earlier. Total expenses during the quarter were higher than expected, reflecting elevated non-compensation expenditures tied to volume-related costs and ongoing technology investments, according to the note. The brokerage kept its underperform rating on the stock. Price: 179.76, Change: -1.76, Percent Change: -0.97