Morgan Stanley posts record Q2, upgrades CAVA Group

Morgan Stanley posted record Q2 2026 results, boosting its stock. It upgraded CAVA Group to "overweight" with a $90 target, but analysts warn of potential trading slowdowns.

Morgan Stanley delivered outstanding results in the second quarter of 2026, far exceeding Wall Street expectations. The firm reported record equity trading revenues of $6.3 billion, marking a 69% year-over-year increase, and attracted $148.1 billion in new net assets within its wealth management division. Total revenues climbed to $21.3 billion, while net income reached $5.58 billion, both showing significant growth over the previous year. The investment banking and institutional securities divisions also posted record revenues of $2.44 billion and $11 billion, respectively. Additionally, Morgan Stanley upgraded CAVA Group shares to "overweight" and raised its price target to $90, citing strong fundamentals despite a high valuation. The stock was further supported by a 15% dividend increase and a $20 billion share repurchase program. However, analysts caution that a slowdown in trading activity could affect future profits.