12:22 PM EDT, 07/16/2025 (MT Newswires) -- Morgan Stanley ( MS ) reported stronger-than-expected second-quarter results on Wednesday as equity trading revenue surged, though its investment banking segment posted a decline.

Per-share earnings rose to $2.13 for the June quarter from $1.82 a year earlier, surpassing the FactSet-polled consensus estimate of $1.97. Revenue grew 12% to $16.79 billion, above the Street's view of $16.07 billion.

Revenue in Morgan Stanley's ( MS ) institutional securities business jumped to $7.64 billion from $6.98 billion in the prior-year quarter as equity trading surged 23% amid higher client activity.

"The first half (of the quarter) began with uncertainty and market volatility associated with the US trade policy and the second half ended with increasing engagement and a steady rebound in capital markets," Chief Executive Ted Pick said at an earnings call, according to a FactSet transcript.

But unlike its competitors that booked investment banking gains during the quarter, Morgan Stanley ( MS ) reported a 5% fall for the division to $1.54 billion, reflecting revenue declines in advisory and fixed-income underwriting.

Shares of Morgan Stanley ( MS ) were down 3.1% in Wednesday trade.

Goldman Sachs (GS) on Wednesday delivered a beat on top- and bottom-lines, a day after JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) reported momentum in investment banking that pushed their second-quarter results above the Street's expectations.

Morgan Stanley's ( MS ) Pick sounded optimistic about investment banking in the second half of the year following a resumption of activity in June.

"Boardrooms appear more accepting of ongoing uncertainty broadly, and we are leaning into our strategy to help clients navigate bouts of volatility," Pick told analysts. "While we're still in the early stages of the investment banking recovery, the outstanding performance and equity underwriting this quarter is a positive leading indicator."

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