State Street Corporation (STT) Earnings

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Sep 2026upcoming

Next quarter

Reports Oct 16, 2026.

Consensus is $3.60 EPS for Sep 2026 across 6 estimates, ranging $3.50 to $3.77.

STT Jun 2026

Reported Jul 16, 2026

: 10.61%
: -1.70%

: $3.30
: $3.65
: —
: $4.05B

Reported results

: $4.05B; from $3.45B
: $1.08B; from $693.00M
: $3.65; from $2.17

Highlights

Earnings beat: Diluted EPS was $3.65, 10.61% above the $3.30 consensus estimate, compared with $2.17 in Q2 2025 and $2.49 in Q1 2026.
Broad revenue growth: Revenue reached $4.048 billion, up 17.4% year over year and 6.6% sequentially, driven by higher fees and net interest income.
Profit acceleration: Net income was $1.084 billion, rising 56.4% year over year and 41.9% from Q1; net income available to common shareholders was $1.026 billion.
Fee engine: Total fee revenue increased 17.2% year over year to $3.188 billion and 7.7% sequentially, with servicing fees up 12.6%, management fees up 28.7% and foreign-exchange trading services up 25.7%.
Net interest income: NII rose 18.0% year over year to $860 million and 3.0% sequentially; net interest margin improved to 1.13% from 0.96% a year earlier, although it was unchanged from Q1.
Operating leverage: Expenses increased 5.1% year over year to $2.811 billion but fell 5.4% sequentially, lifting the reported pre-tax margin to 34.3% from 25.8% in Q2 2025 and 25.5% in Q1 2026.
Asset growth: Assets under custody and/or administration reached $57.858 trillion, up 18.1% year over year and 6.1% sequentially; assets under management rose 22.7% year over year to $6.278 trillion.
Balance-sheet expansion: Average deposits grew 3.7% year over year and 4.8% sequentially to $270.345 billion, while period-end loans reached $52.062 billion, up 10.1% year over year and 5.8% sequentially.
Capital and shareholder returns: Common equity tier 1 capital was estimated at 10.6%, versus 10.8% at March 31, while the quarterly common dividend remained $0.84 per share.

Analysis

State Street's second quarter was a broad-based earnings acceleration, with EPS of $3.65 beating the $3.30 consensus by 10.61%. Revenue of $4.048 billion increased 17.4% from Q2 2025 and 6.6% from Q1 2026, while net income of $1.084 billion rose 56.4% year over year and 41.9% sequentially. The result was substantially stronger than both the year-ago quarter's $2.17 diluted EPS and the prior quarter's $2.49.

The defining feature was the breadth of the revenue performance. Fee revenue grew 17.2% year over year to $3.188 billion, led by management fees up 28.7%, foreign-exchange trading services up 25.7% and servicing fees up 12.6%. Net interest income added another $860 million, up 18.0% year over year, as the net interest margin expanded to 1.13% from 0.96%, though NIM was flat sequentially. Expense discipline amplified the revenue growth: costs rose only 5.1% year over year and declined 5.4% from Q1, producing a 34.3% pre-tax margin. The operating backdrop also remained favorable, with custody and administration assets up 18.1% and assets under management up 22.7% year over year.

Earnings and profitability

Revenue: Total revenue was $4.048 billion, up 17.4% from $3.448 billion in Q2 2025 and 6.6% from $3.796 billion in Q1 2026.
Net income: Net income reached $1.084 billion, compared with $693 million a year earlier and $764 million in the prior quarter. Net income available to common shareholders was $1.026 billion.
Margins and returns: The reported pre-tax margin was 34.3%, up from 25.8% in Q2 2025 and 25.5% in Q1. Return on average common equity was 16.7%, versus 10.8% a year earlier and 11.6% sequentially.
Per-share growth: Diluted EPS of $3.65 increased 68.2% year over year and 46.6% sequentially, helped by the profit increase and a 3.2% year-over-year decline in diluted shares outstanding to 281.1 million.

Fee revenue engine

Total fees: Fee revenue was $3.188 billion, up 17.2% year over year and 7.7% sequentially; fee revenue represented the large majority of total revenue.
Servicing fees: Servicing fees rose 12.6% year over year to $1.468 billion and 4.2% from Q1, reflecting the larger asset-servicing base.
Management fees: Management fees increased 28.7% year over year to $772 million and 6.6% sequentially, benefiting from higher assets under management.
Market-sensitive activities: Foreign-exchange trading services rose 25.7% year over year to $494 million and 13.6% sequentially. Securities finance increased 19.0% year over year to $150 million, while software services declined 1.8% to $166 million.

Net interest income

NII growth: Net interest income was $860 million, up from $729 million in Q2 2025 and $835 million in Q1 2026. Year-to-date NII of $1.695 billion was 17.5% above the comparable 2025 period.
Margin recovery: Net interest margin was 1.13%, compared with 0.96% in Q2 2025 and 1.10% in Q1 2026. The year-over-year improvement reflected a wider spread between rates earned and paid, which reached 0.86% versus 0.68% a year earlier.
Balance-sheet support: Average interest-earning assets increased 0.2% year over year and 4.2% sequentially to $305.406 billion. Average loans grew 10.6% year over year to $50.081 billion, while average deposits rose 3.7% to $270.345 billion.

Expenses and capital

Expense control: Total expenses were $2.811 billion, up 5.1% year over year but down 5.4% sequentially. Compensation and employee benefits rose 0.9% year over year to $1.441 billion, while information systems and communications costs increased 12.6% to $637 million.
Credit costs: The quarter recorded no provision for credit losses, compared with $30 million in Q2 2025 and $8 million in Q1 2026.
Capital position: The estimated common equity tier 1 ratio was 10.6%, down from 10.8% at March 31 and below 11.6% at June 30, 2025. Tangible book value per common share rose to $59.23 from $56.59 a year earlier and $56.59? No, from $56.59 in Q1 2026.
Shareholder distribution: The quarterly common dividend was $0.84 per share, unchanged sequentially and up 10.5% from the $0.76 paid in Q2 2025.

Asset gathering

Custody and administration: Assets under custody and/or administration were $57.858 trillion, up 18.1% year over year and 6.1% sequentially.
Asset management: Assets under management reached $6.278 trillion, up 22.7% year over year and 11.7% from Q1 2026.
Securities finance: Average securities on loan increased 23.7% year over year to $478.343 billion and 11.0% sequentially, supporting the increase in securities-finance fees.

State Street Corporation

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