Morgan Stanley Says Firms Are Focused on Costs Like Never Before

US companies are discussing cost control on earnings calls at a record rate, amid a push to reallocate funds and invest in new technologies, according to an analysis by Morgan Stanley strategists.

Transcript mentions of “operational efficiency” are at the highest ever in the US during this earnings season as companies focus on expense discipline, but also invest in technologies “that can drive future productivity like AI,” a team led by Michael Wilson wrote in a note.

There is a notable overlap among the industries discussing operational efficiency most prevalently and those that are discussing AI, the strategists said. These ...