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

15 Oct 2026, 07:13 by Amy Steele · The Cerbat Gem

State Street (NYSE:STT – Get Free Report) issued its earnings results on Wednesday. The asset manager reported $3.69 earnings per share for the quarter, beating analysts’ consensus estimates of $3.68 by $0.01, FiscalAI reports. The company had revenue of $4 billion for the quarter, compared to the consensus estimate of $4.03 billion. State Street had a return on equity of 15.26% and a net margin of 15.02%. The firm’s quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $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 Trading Down 4.3%

Shares of STT stock opened at $166.69 on Thursday. The firm has a 50 day moving average price of $184.93 and a two-hundred day moving average price of $169.28. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. The company has a market capitalization of $45.79 billion, a PE ratio of 14.22, a price-to-earnings-growth ratio of 0.83 and a beta of 1.41. State Street has a 12-month low of $104.64 and a 12-month high of $195.93.

Insider Activity at State Street

In other State Street news, 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 value of $2,680,226.01. Following the completion of the sale, the chief executive officer owned 240,959 shares in the company, valued at $44,377,419.03. The trade was a 5.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of the firm’s stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the completion of the sale, the executive vice president owned 49,794 shares in the company, valued at $9,187,988.88. This represents a 16.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.27% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several brokerages have recently issued reports on STT. Evercore set a $200.00 target price on shares of State Street in a research note on Monday, July 20th. Keefe, Bruyette & Woods increased their price objective on shares of State Street from $195.00 to $215.00 and gave the company an “outperform” rating in a report on Friday, July 17th. Wells Fargo & Company raised their price objective on shares of State Street from $196.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Bank of America lifted their target price on shares of State Street from $160.00 to $190.00 and gave the stock a “neutral” rating in a report on Tuesday, July 7th. Finally, BMO Capital Markets dropped 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. Ten investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, State Street currently has an average rating of “Moderate Buy” and an average price target of $193.38.

Read Our Latest Research Report on STT

Key Headlines Impacting State Street

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

Positive Sentiment: State Street reported third-quarter adjusted earnings of $3.69 per share, ahead of the approximately $3.68 consensus estimate and up from $2.78 a year earlier. Net income increased 27% year over year, while revenue rose 12.9% to roughly $4.00 billion. State Street Corporation Reports Third-Quarter 2026 Financial Results
Positive Sentiment: Asset growth was a major bright spot: assets under custody and administration reached a record $59.2 trillion, up 15% year over year, while assets under management climbed 16% to $6.3 trillion. Fee revenue rose 11%, management fees increased 20%, and net interest income grew 21%. State Street Posts Third-Quarter Revenue and EPS
Positive Sentiment: State Street returned $651 million to common shareholders through $400 million of share repurchases and $251 million in dividends. The company also updated its fiscal-year outlook, providing some support for the longer-term earnings case. State Street Q3 2026 Earnings and Outlook
Neutral Sentiment: State Street elected Alexander Vollert as an independent director and redeemed senior notes. These developments affect governance and capital structure but were not the primary drivers of the market reaction. State Street Posts Q3 Results and Redeems Senior Notes
Negative Sentiment: Revenue of $4.004 billion fell slightly short of Wall Street’s roughly $4.03 billion forecast and declined sequentially. Investors were especially concerned about disappointing fee revenue, weak net inflows and expectations for rising expenses, despite the EPS beat. State Street Q3 Earnings as Fee Revenue Disappoints
Negative Sentiment: A securities-law investigation was announced following the earnings-related selloff. The notice comes from an investor law firm and does not establish wrongdoing, but it adds uncertainty and may weigh on sentiment. Unusually heavy put-option activity also signals increased near-term hedging. State Street Investigation Notice

State Street Company Profile

(Get Free Report)

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.