State Street Q2 Earnings Call Highlights
State Street Q2 Earnings Call Highlights.
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Interested in State Street Corporation? Here are five stocks we like better.
State Street posted strong Q2 2026 results , with earnings per share of $3.65 versus $2.17 a year ago and revenue up 17% to a record $4 billion. Management highlighted record fee revenue, record net interest income, and strong performance across servicing, investment management and markets.
The company raised its full-year outlook , now expecting fee revenue growth of 12% to 13% and net interest income growth of 14% to 15%. It also increased expenses guidance, but still expects about 500 basis points of positive operating leverage and a pre-tax margin near 32%.
State Street set ambitious medium-term targets , including a 35% pre-tax margin and mid-20s return on tangible common equity over the cycle. Executives said growth will come from core businesses, alternatives, digital assets and wealth services, supported by a technology and AI-driven transformation program.
Why State Street's Options Volume Just Sent a Bullish Signal
State Street (NYSE:STT) reported sharply higher second-quarter 2026 earnings and raised its full-year outlook, as executives pointed to record fee revenue, record net interest income and continued momentum across investment servicing, investment management and markets.
Chief Executive Officer Ron O'Hanley said the quarter reflected "disciplined execution, deep client engagement, and continued momentum across our businesses." The company reported second-quarter earnings per share of $3.65, up from $2.17 in the prior-year period. Excluding prior-year notable items, earnings grew 44% year over year, according to O'Hanley.
Iron Mountain Down 23% From Its 1-Year High—Is It Undervalued?
Total revenue rose 17% from a year earlier to a record $4 billion. Chief Financial Officer John Woods said fee revenue increased 16% to $3.2 billion, while net interest income rose 18% to $860 million, supported by a 17-basis-point increase in net interest margin to 113 basis points.
Expenses increased 10% year over year to $2.7 billion, excluding notable items, primarily due to higher revenue-related costs and continued strategic investments. The results lifted pre-tax margin by 470 basis points to 34%, while return on tangible common equity rose more than six percentage points to about 26%.
The Behemoth BlackRock's Next Trillion Comes From Private Assets
State Street's investment servicing business posted second-quarter servicing fees of $1.5 billion, up 13% year over year. Woods said the increase reflected approximately 7% organic growth from client activity, flows and net new business, with additional support from higher average market levels and currency translation.
Assets under custody and administration ended the quarter at a record $57.9 trillion, up 18% from a year earlier. Servicing fee sales totaled $87 million, with Woods citing continued demand across regions and strength in strategic growth areas, including alternatives.
→ These 3 Water ETFs Could be Quiet Winners From Infrastructure Spending
In investment management, fees rose 29% year over year to $772 million, supported by roughly 9% organic growth and higher average market levels. Assets under management reached a record $6.3 trillion, up 23% year over year, while net inflows totaled $114 billion. Woods said the quarter marked the fifth consecutive quarter of positive organic growth, led by $66 billion of index ETF inflows and $35 billion of cash inflows.
State Street also launched 38 new products and solutions during the quarter, including a tokenized money market solution and a stablecoin reserves fund. O'Hanley highlighted that SPYM, the company's low-cost S&P 500 ETF, was selected by the U.S. Department of the Treasury as the exclusive default ETF for Trump Accounts.
Markets revenue also strengthened. FX trading services revenue increased 27% year over year, excluding a prior-year notable item, to $494 million, driven by record client volumes. Securities finance revenue rose 19% year over year on higher client lending balances. Software services revenue declined 14%, excluding a prior-year notable item, reflecting elevated on-premises renewal activity in the prior year, though Woods said software and data revenue rose 10%.
