Morgan Stanley Q3FY26 Results: Analysts forecast $3.10 EPS, $20.52B revenue
- Morgan Stanley reports Q3 earnings on October 14 with consensus EPS at $3.10
- Revenue estimated at $20.52 billion, up from $18.22 billion in prior year
- Four analysts cut price targets; UBS raised target to $260
- Shares traded at $187.29 following a 0.4% decline
*this image is generated using AI for illustrative purposes only.
Morgan Stanley (NYSE: MS) will release its third-quarter earnings report before the opening bell on Wednesday, October 14. The New York-based investment bank faces a consensus estimate of $3.10 per share in earnings, up from $2.80 in the year-ago period.
Analysts project quarterly revenue of $20.52 billion, compared to $18.22 billion reported last year. Ahead of the release, several major firms revised price targets while maintaining existing ratings on the stock.
Analyst Ratings and Price Targets
Recent revisions reflect a mixed outlook on valuation levels despite maintained confidence in operational performance. The table below summarizes key analyst actions recorded in late September and early October.
| Firm | Analyst | Rating | Previous Target | Revised Target | Date |
|---|---|---|---|---|---|
| Evercore ISI Group | Glenn Schorr | Outperform | $240 | $215 | October 1, 2026 |
| Citigroup | Benjamin Gerlinger | Neutral | $235 | $210 | September 30, 2026 |
| HSBC | Domenico Santoro | Hold | $215 | $219 | September 28, 2026 |
| Wells Fargo | Mike Mayo | Equal-Weight | $240 | $223 | September 25, 2026 |
| UBS | Erika Najarian | Buy | $255 | $260 | August 3, 2026 |
What the Numbers Show
The divergence in analyst actions highlights a compression in expected valuation multiples. While four of the five listed analysts reduced their price targets, only HSBC and UBS raised theirs. Notably, UBS analyst Erika Najarian boosted the target to $260, significantly above the current trading level of $187.29. Conversely, Citigroup’s reduction to $210 suggests a more cautious stance on near-term upside potential despite the neutral rating maintenance.
Market Context
Morgan Stanley shares fell 0.4% to trade at $187.29 on Thursday. Separately, FB Financial announced the completion of a $125 million subordinated notes offering due 2036, a distinct corporate action unrelated to Morgan Stanley’s direct earnings report.
How might the significant gap between UBS's $260 target and the current $187 share price influence institutional investor sentiment following the earnings release?
Will the projected 12.6% year-over-year revenue growth be sufficient to offset the downward revisions in price targets from major firms like Evercore and Citigroup?
What specific factors in Morgan Stanley's wealth management or investment banking divisions are driving the divergent outlooks among analysts regarding near-term upside potential?
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