State Street (NYSE:STT) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

State Street (NYSE:STT) announced its quarterly earnings data on Wednesday. The asset manager reported $3.69 EPS for the quarter, beating the consensus estimate of $3.68 by $0.01, FiscalAI reports. The firm had revenue of $4 billion during the quarter, compared to analyst estimates of $4.03 billion. State Street had a net margin of 15.81% and a return on equity of 16.36%. State Street’s revenue was up 12.9% on a year-over-year basis. During the same period last year, the firm posted $2.78 EPS.

Here are the key takeaways from State Street’s conference call:

• Strong third-quarter performance: EPS rose 33% year over year to $3.69, revenue increased 13% to $4.0 billion, and State Street delivered its 11th consecutive quarter of positive operating leverage. Pre-tax margin reached 35% and ROTCE was 25%.
• Core businesses continued to gain momentum, with record servicing and management fees, assets under custody and administration of $59.2 trillion, record investment-management AUM of $6.3 trillion, and record FX client volumes. Investment management also posted its sixth consecutive quarter of organic net inflows.
• Management raised its 2026 outlook, now expecting fee-revenue growth of 13%–14% and NII growth of 15%–16%, while maintaining an expectation for more than 500 basis points of positive operating leverage. The company expects a total payout ratio approaching 80%, implying a significant increase in fourth-quarter share repurchases.
• State Street reported early traction in its strategic growth initiatives, including alternatives, digital assets, and wealth services. It secured a major RIA servicing mandate, remains on track to launch tokenized fund servicing by year-end subject to regulatory approval, and agreed to acquire Santander CACEIS’s Latin American securities-services business, expected to close in 2027.
• Management acknowledged some near-term variability, including a 14% sequential decline in FX revenue after an exceptionally strong second quarter and ongoing runoff in portions of the loan portfolio. Executives characterized both trends as largely expected, with FX revenue expected to grow sequentially in the fourth quarter and loan growth potentially resuming as runoff moderates in 2027.

State Street Stock Performance

Shares of STT opened at $167.62 on Friday. The company’s 50 day simple moving average is $184.58 and its 200-day simple moving average is $169.60. State Street has a 12-month low of $104.64 and a 12-month high of $195.93. The firm has a market cap of $46.05 billion, a PE ratio of 12.69, a price-to-earnings-growth ratio of 0.79 and a beta of 1.41. The company has a current ratio of 0.57, a quick ratio of 0.59 and a debt-to-equity ratio of 1.07.

Insider Buying and Selling

In related news, EVP W. Hu sold 9,758 shares of State Street stock in a transaction on Friday, July 24th. The shares were sold at an average price of $184.52, for a total value of $1,800,546.16. Following the transaction, the executive vice president directly owned 49,794 shares in the company, valued at $9,187,988.88. This trade represents a 16.39% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ronald O’Hanley sold 14,553 shares of State Street stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the completion of the sale, the chief executive officer directly owned 240,959 shares in the company, valued at approximately $44,377,419.03. The trade was a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.27% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. BMO Capital Markets decreased their target price on shares of State Street from $212.00 to $200.00 and set an “outperform” rating for the company in a research report on Tuesday, October 6th. Keefe, Bruyette & Woods boosted their target price on shares of State Street from $220.00 to $230.00 and gave the company an “outperform” rating in a research note on Thursday. Morgan Stanley increased their price target on shares of State Street from $183.00 to $195.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. JPMorgan Chase & Co. increased their target price on State Street from $187.00 to $187.50 and gave the company a “neutral” rating in a research report on Friday, October 2nd. Finally, Bank of America lifted their price target on State Street from $160.00 to $190.00 and gave the stock a “neutral” rating in a report on Tuesday, July 7th. Ten equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $191.91.

Trending Headlines about State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: State Street reported third-quarter earnings of $3.69 per share, narrowly exceeding the approximately $3.68 consensus estimate and rising from $2.78 a year earlier. Net income increased 27%, while revenue grew 12.9% year over year to roughly $4.00 billion. State Street Corporation Reports Third-Quarter 2026 Financial Results
• Positive Sentiment: Assets under custody and administration reached a record $59.2 trillion, while assets under management rose 16% to $6.3 trillion. Fee revenue increased 11%, management fees rose 20%, and net interest income climbed 21%, supporting the longer-term growth story. State Street Posts $4.0 Billion Revenue and $3.69 Third-Quarter EPS
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target to $230 and maintained an outperform rating, indicating substantial potential upside if State Street delivers on its outlook. These Analysts Revise Their Forecasts on State Street After Q3 Results
• Neutral Sentiment: Analyst reactions were mixed. Truist cut its target to $171 and rated the stock hold, while other firms adjusted forecasts after the results. This reinforces uncertainty about near-term earnings momentum. These Analysts Revise Their Forecasts on State Street After Q3 Results
• Negative Sentiment: Revenue of approximately $4.00 billion fell short of the roughly $4.03 billion forecast and declined sequentially. Investors also focused on weak net inflows and expectations for higher expenses, causing the stock to fall sharply after the earnings release despite the EPS beat. State Street Shares Fall as Q3 Revenue Misses Forecasts
• Negative Sentiment: A shareholder-investigation notice alleging potential securities-law violations adds an additional reputational and legal overhang, although the claims have not been established. State Street Investigation Notice

State Street Company Profile

State Street Corporation (NYSE: STT) is a financial services company that provides institutional investors, asset managers, asset owners, insurance companies, official institutions and other organizations with investment servicing, investment management and related financial services. Its offerings include custody and fund administration, accounting, transfer agency, collateral management, securities lending, foreign exchange, trading and other capital markets services.

Through State Street Investment Management, the company manages investment strategies and offers products such as exchange-traded funds, index strategies, active strategies and other portfolio solutions.