Bank of America and Morgan Stanley Earnings Outlook: What Investors Need to Know

Bank of America and Morgan Stanley are scheduled to report their first-quarter earnings on Wednesday, April 16, 2026. The reports follow a series of mixed results from other major financial institutions, with investors focusing on the ability of these firms to maintain profit growth amid an uncertain market environment.

Market analysts and investors are monitoring these releases to determine if the momentum seen in late 2025 will carry into the first quarter of 2026. Previous reporting indicated that both institutions benefited significantly from a rebound in capital markets and resilient consumer spending during the third quarter of 2025.

Context from 2025 Performance

The expectations for the upcoming reports are informed by a strong turnaround that occurred in the third quarter of 2025. During that period, Morgan Stanley and Bank of America reported double-digit earnings growth, signaling a recovery in CEO confidence and market activity after a sluggish start to that year.

Morgan Stanley’s third-quarter 2025 results showed a 45% jump in profit, supported by a surge in investment banking and equity trading. The firm posted revenue of approximately $18.2 billion, which exceeded Wall Street estimates by more than 9%. Net income for that period reached $4.6 billion.

Key drivers for Morgan Stanley during that quarter included investment banking fees, which rose 44% year-on-year to $2.1 billion, and equity trading, which increased 35% to $6.3 billion. The firm’s performance was attributed to rebounding IPO activity and merger momentum.

Bank of America also reported a strong third quarter in 2025, with profits increasing 23% to $8.47 billion. Total revenue rose 11% to more than $28 billion. This growth was powered by record net interest income of $15.2 billion and a 43% increase in investment banking fees.

Strategic Positioning and Market Factors

Analysts have noted that Morgan Stanley’s diversified business model, specifically its integration of Wealth Management and Institutional Securities, has positioned the company for stability heading into 2026.

Bank of America’s previous success was linked to its asset and liability management strategies during a period of rising interest rates, which drove both revenue and net interest income growth.

Current Analyst Outlook

Heading into the April 16, 2026, reports, analysts covering Morgan Stanley have generally reconfirmed their estimates over the preceding 30 days. This suggests a general anticipation that the business will remain stable.

The upcoming earnings reports are arriving at a time of mixed results across the broader banking sector. Reports from Barron’s indicate that Morgan Stanley and Bank of America are expected to post higher profits, contrasting with the varied performance seen at other large banks.

Investor interest is currently focused on several key areas as these firms report:

• The sustainability of the rebound in dealmaking and capital markets momentum.
• The impact of current market uncertainty on investment banking fees.
• The stability of net interest income in the current rate environment.
• The performance of wealth management revenues.

The reports on Wednesday will provide a clearer picture of whether the growth trends established in late 2025 have persisted through the first three months of 2026.