StockWatch
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STATE STREET CORP Q2 FY26 Results

STTQ2 FY26 Results
Filing
MetricValue ($ M)Q1 FY26Q2 FY25
Revenue4.0K6.6%17.4%
Total Income4.0K6.6%17.4%
Expenditure2.7K5.9%3.9%
PBT1.4K43.3%56.2%
Net Profit1.1K41.9%56.4%
OPM
NPM26.78%6.65pp6.68pp
EPS3.7146.6%68.6%
View full financials

State Street Reports Q2 2026 EPS of $3.65

16 Jul 2026 · 16 Jul, 5:06 pm

Summary

State Street Corporation announced strong second quarter 2026 results, with total revenue reaching a record $4.0 billion, up 17% year-over-year, driven by growth in fee revenue and net interest income. Diluted EPS surged by 68% to $3.65. The company achieved record AUC/A of $57.9 trillion and record AUM of $6.3 trillion, reflecting robust business momentum. Management expressed confidence in their growth strategy, highlighting new medium-term financial targets and a focus on delivering sustainable growth.

Key Highlights

  1. 1

    State Street reported record total revenues of $4.0 billion for the second quarter of 2026, an increase of 17% year-over-year.

  2. 2

    Diluted earnings per share (EPS) reached $3.65 in Q2 2026, marking a significant 68% increase compared to the same period last year.

  3. 3

    Assets Under Custody and/or Administration (AUC/A) reached a record $57.9 trillion, up 18% year-over-year, driven by market levels, flows, and new business.

  4. 4

    Assets Under Management (AUM) also hit a record $6.3 trillion, increasing 23% year-over-year due to higher market levels and net inflows.

  5. 5

    Pre-tax margin stood at 34.3% in Q2 2026, an improvement of 8.5 percentage points compared to the prior year.

  6. 6

    The company returned $631 million of capital to common shareholders in Q2 2026, including $400 million in share repurchases and $231 million in dividends.

Management Comments

R

Ron O’Hanley

Our strong start to 2026 continued in the second quarter, powered by the strength of our global franchises. We achieved record total revenues, along with record AUC/A and AUM in the quarter, further underscoring our continued momentum. This drove significant positive operating leverage year-over-year in 2Q and a tenth consecutive quarter of positive operating leverage excluding notable items. Following the release of the Federal Reserve’s stress test results, we recently declared a 10% per share increase to our third quarter common stock dividend, reflecting the resilience of our franchise and our continued focus on returning capital to shareholders. Building on this continued strong performance, we are entering our next phase of growth, defined by new medium-term financial targets. We are confident in our ability to deliver on these goals and drive sustainable growth and performance for our clients, shareholders, and employees. That confidence is grounded in our scaled global franchises, distinctive strategic growth initiatives, our ongoing technology- and AI-enabled transformation, and the One State Street value proposition.

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