State Street Corporation
STT · NYSE
Next quarter
Expected to report Jan 15, 2027 — estimated from last year’s reporting date.
Consensus is $3.66 EPS for Dec 2026 across 7 estimates, ranging $3.51 to $3.81.
STT Sep 2026
- 1.10%
- $3.65
- $3.69
- —
- $4.00B
Reported results
- $4.00B
- $1.09B
- $3.69
Highlights
- Earnings beat: Third-quarter diluted EPS was $3.69, 1.1% above the $3.65 consensus and up 32.7% year over year; revenue was $4.00 billion, up 12.9% year over year but down 1.1% from Q2.
- Fee revenue: Fees rose 11.0% year over year to $3.14 billion, led by management fees of $797 million (+20.0%) and servicing fees of $1.49 billion (+9.9%); fees declined 1.5% sequentially.
- Net interest income: NII increased 20.8% year over year to $864 million and 0.5% sequentially; net interest margin was 1.12%, versus 0.96% a year ago and 1.13% in Q2.
- Profitability: Net income was $1.09 billion, up 26.6% year over year and 0.6% sequentially. The pre-tax margin expanded to 34.6% from 31.1% a year ago.
- Client assets: Assets under custody and/or administration reached $59.17 trillion, up 14.5% year over year and 2.3% sequentially; assets under management were $6.31 trillion, up 15.8% and 0.4%, respectively.
- Costs: Expenses totaled $2.62 billion, up 7.6% year over year but down 1.5% sequentially, below the pace of annual revenue growth.
- Capital return: State Street declared a $0.92 per-share dividend, up from $0.84 in both comparison quarters; average diluted shares were down 3.1% year over year.
Analysis
State Street reported a modest consensus beat, with diluted EPS of $3.69 versus $3.65 expected. Revenue of $4.00 billion was 12.9% above the year-ago quarter but 1.1% below Q2; net income of $1.09 billion rose 26.6% year over year and 0.6% sequentially. EPS growth was also aided by a 3.1% year-over-year reduction in average diluted shares. The quarter’s strongest themes were growth in the fee franchise and higher net interest income, alongside a slight sequential revenue pullback after Q2.
Fee revenue advanced 11.0% year over year to $3.14 billion, with management and servicing fees leading, though the total declined 1.5% from Q2. NII rose 20.8% year over year to $864 million as the margin improved to 1.12% from 0.96% a year earlier; it eased one basis point sequentially. Expenses rose 7.6% year over year, slower than revenue, and fell 1.5% from Q2, helping lift the pre-tax margin to 34.6% from 31.1% a year ago. Client assets also continued to grow: custody and administration assets reached $59.17 trillion and AUM $6.31 trillion, both higher year over year.
Fee revenue
- Servicing and management: Servicing fees rose 9.9% year over year to $1.49 billion, while management fees increased 20.0% to $797 million.
- Markets-related fees: Foreign exchange trading services generated $427 million, up 17.3% year over year but down 13.6% sequentially. Securities finance was $151 million, up 9.4% year over year.
- Total fees: Fee revenue reached $3.14 billion, up 11.0% year over year, but fell 1.5% from Q2’s $3.19 billion. Other fee revenue declined 29.5% year over year to $98 million.
Net interest income
- NII: Net interest income was $864 million, 20.8% above Q3 2025 and 0.5% above Q2 2026.
- Margin: Net interest margin was 1.12%, up from 0.96% a year earlier and down from 1.13% in Q2.
- Balance sheet: Average deposits were $271.1 billion, up 6.5% year over year and 0.3% sequentially. Average interest-bearing deposit costs were 2.49%, versus 2.86% a year earlier and 2.45% in Q2.
Profitability and costs
Net income reached $1.09 billion, compared with $861 million in Q3 2025 and $1.08 billion in Q2 2026. Diluted EPS of $3.69 beat the $3.65 consensus by 1.1%; it was $2.78 a year earlier and $3.65 last quarter. Average diluted shares fell to 279.3 million from 288.2 million a year ago.
Expenses were $2.62 billion, up 7.6% year over year but down 1.5% sequentially. With revenue up 12.9% year over year, the pre-tax margin widened to 34.6% from 31.1% a year earlier and 34.3% in Q2.
Client assets
- Custody and administration: Assets under custody and/or administration were $59.17 trillion at quarter-end, up 14.5% year over year and 2.3% from Q2.
- Asset management: AUM reached $6.31 trillion, 15.8% above Q3 2025 and 0.4% higher sequentially.
- Securities finance: Average securities on loan were $464.5 billion, up 14.9% year over year but down 2.9% from Q2.
Capital and dividends
- Capital: The estimated common equity tier 1 ratio was 11.3% at quarter-end.
- Dividend: The declared common dividend was $0.92 per share, compared with $0.84 in both Q3 2025 and Q2 2026.
