Morgan Stanley (MS) is moving higher today after releasing first-quarter 2026 results that showed a sharp year-over-year improvement in earnings power. The firm posted net revenues of $20.6 billion, up 16% from a year earlier, while diluted EPS rose to $3.43 from $2.60, alongside a 27.1% return on tangible common equity—metrics that signal stronger profitability and operating leverage.

The headline takeaway is the combination of higher revenue and a big step-up in profitability, highlighted by record quarterly revenues and stronger returns. Those results are resetting near-term expectations for how much earnings capacity Morgan Stanley can generate in the current market backdrop, helping explain the upside move in the shares.

Investors will focus on how durable the quarter’s momentum is—particularly across market-sensitive businesses—and whether expense growth, credit performance, and client activity remain supportive through the rest of 2026. Any updates on capital return priorities and balance-sheet positioning during the earnings call can further influence the stock’s move from here.