MS · Earnings call · 2026Q3T · Full report

Operating Expense Trends

MORGAN STANLEY · 2026-10-14 · Importance 26 · Surprise 24

Morgan Stanley’s year-to-date efficiency ratio was 66%. Strong revenue growth generated operating leverage and more than offset elevated execution-related costs compared with the prior year. The firm continued investing in its technology stack and AI tools for infrastructure, business growth, finance reconciliation, equities sales, and other productivity processes.

Key facts

• Sharon said non-comp expenses were flat quarter-over-quarter firmwide despite some lower revenues and that the firm is investing technology dollars to use AI across the firm as a multiyear investment program.
• Year-to-date firm efficiency ratio: 66%.