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Bank of New York Mellon
(NYSE:BNY)
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Rating:67Neutral
Price Target:
$161.00
â–¼(-1.62% Downside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by a strong, guidance-raising earnings call and improved profitability metrics, partially offset by weaker recent financial statement top-line trends and mixed cash conversion. Technical signals are neutral-to-soft (negative MACD and below key intermediate moving averages), while valuation is moderate with a modest dividend yield.
Positive Factors
Scaled custody and servicing franchise
BNY’s enormous custody and administration platform provides scale, embedded client relationships, and recurring fee opportunities across global financial markets. Rising assets, activity, and new mandates can reinforce operating leverage and make the franchise difficult for smaller competitors to replicate.
Negative Factors
Recent top-line contraction
The TTM revenue decline shows that recent operating momentum has not been consistent across reporting periods, despite the latest quarter’s strong result. A weaker recent base can make growth more dependent on market values, interest income, and client activity, increasing uncertainty around durable revenue progression.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaled custody and servicing franchise
BNY’s enormous custody and administration platform provides scale, embedded client relationships, and recurring fee opportunities across global financial markets. Rising assets, activity, and new mandates can reinforce operating leverage and make the franchise difficult for smaller competitors to replicate.
Read all positive factors
Bank of New York Mellon Key Performance Indicators (KPIs)
Any
Assets Under Management
Shows the total market value of client assets BNY manages on behalf of investors; growth in AUM boosts fee revenue and signals client trust, while declines can indicate outflows or negative market moves that pressure earnings.
Shows the total market value of client assets BNY manages on behalf of investors; growth in AUM boosts fee revenue and signals client trust, while declines can indicate outflows or negative market moves that pressure earnings.
Data provided by:
The Fly
The FlyBank of New York Mellon (BNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.82B
Dividend Yield1.6%
Average Volume (3M)4.18M
Price to Earnings (P/E)16.3
Beta (1Y)0.88
Revenue Growth-1.15%
EPS Growth30.83%
CountryUS
Employees46,600
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)8.63
Shares Outstanding678,504,150
10 Day Avg. Volume4,461,579
30 Day Avg. Volume4,179,254
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)1.85
Price to Sales (P/S)2.02
P/FCF Ratio15.80
Enterprise Value/Market Cap0.46
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda4.72
Forecast
1Y Price Target
$164.58Price Target Upside0.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)9.33
Revenue Forecast (FY)$22.45B
Bank of New York Mellon Business Overview & Revenue Model
Company Description
The Bank of New York Mellon Corp. is a holding company, which engages in the provision of financial services. It operates through the following segments: Securities Services, Market and Wealth Services, Investment and Wealth Management, and Other....
How the Company Makes Money
BNY makes money primarily by charging fees for investment services and by earning revenue from investment management, with additional income from net interest and other market-related activities.
1) Fee revenue from investment services (core earn...
Bank of New York Mellon Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 15, 2027
Earnings Call Sentiment Positive
The call was strongly positive. BNY reported broad-based double-digit revenue growth, higher earnings and profitability, 15 consecutive quarters of sales growth, strong segment performance, continued platform and AI deployment, and a raised full-year operating outlook. The main challenges were an uneven market backdrop, AUM outflows, seasonal deposit and net interest income declines, higher expenses, lower capital ratios and ongoing AI governance requirements, but these were outweighed by the company's reported momentum and improved guidance.Positive Updates
Strong Third-Quarter Earnings and Profitability
Earnings per share was $2.34, up 24% year-over-year, or $2.37 excluding notable items. Pretax margin expanded to 39%, return on tangible common equity was 29%, and the company generated approximately 390 basis points of positive operating leverage.
Negative Updates
Uneven and Volatile Operating Environment
Management described the operating environment as constructive but uneven. Persistent inflation, a sharp repricing in interest rates, geopolitical tensions and trade uncertainty contributed to volatility in fixed income markets and rotations across equity markets.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Earnings and Profitability
Earnings per share was $2.34, up 24% year-over-year, or $2.37 excluding notable items. Pretax margin expanded to 39%, return on tangible common equity was 29%, and the company generated approximately 390 basis points of positive operating leverage.
Read all positive updates
Company Guidance
For full year 2026, BNY expects to generate nearly 500 basis points of positive operating leverage, with total revenue growth, excluding notable items, to land somewhere around the middle of a 12% to 13% range, market dependent, net interest income to be up 15% year-over-year, and expense growth, excluding notable items, somewhere around the middle of a 7% to 8% range; its central case assumes current market implied forward interest rates and that the operating environment remains broadly constructive, while deposits are expected to pick up into Q4 a little relative to Q3, roughly $5 billion of securities are rolling off per quarter, the medium-term outlook for Wealth Solutions is mid-single digits of net new assets, and the capital management philosophy remains a Tier 1 leverage ratio of 5.5% to 6%.Bank of New York Mellon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.48B | 40.44B | 39.55B | 33.79B | 19.80B | 15.86B |
| Gross Profit | 21.26B | 19.79B | 18.19B | 17.37B | 16.15B | 15.86B |
| EBITDA | 9.77B | 8.91B | 7.65B | 6.17B | 5.26B | 6.51B |
| Net Income | 6.30B | 5.55B | 4.53B | 3.30B | 2.56B | 3.76B |
Balance Sheet | ||||||
| Total Assets | 525.14B | 472.30B | 416.06B | 409.88B | 405.78B | 444.44B |
| Cash, Cash Equivalents and Short-Term Investments | 348.35B | 190.69B | 200.61B | 238.93B | 225.56B | 266.75B |
| Total Debt | 61.70B | 33.88B | 45.44B | 46.24B | 43.19B | 38.25B |
| Total Liabilities | 454.02B | 427.49B | 374.30B | 368.97B | 364.93B | 401.05B |
| Stockholders Equity | 44.66B | 44.31B | 41.32B | 40.77B | 40.73B | 43.03B |
Cash Flow | ||||||
| Free Cash Flow | 1.59B | 5.18B | -782.00M | 4.69B | 13.72B | 1.62B |
| Operating Cash Flow | 3.57B | 6.73B | 687.00M | 5.91B | 15.07B | 2.84B |
| Investing Cash Flow | -35.24B | -44.28B | -9.48B | -5.81B | 19.87B | 19.67B |
| Financing Cash Flow | 34.83B | 39.71B | 6.34B | -3.52B | -33.65B | -21.96B |
Bank of New York Mellon Technical Analysis
Positive
163.65
Price Trends
151.35
Negative
151.52
Negative
138.00
Positive
Market Momentum
-0.92
Negative
56.61
Neutral
91.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNY, the sentiment is Positive. The current price of 163.65 is above the 20-day moving average (MA) of 143.43, above the 50-day MA of 151.35, and above the 200-day MA of 138.00, indicating a neutral trend. The MACD of -0.92 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BNY.
Bank of New York Mellon Risk Analysis
Bank of New York Mellon disclosed 1 risk factors in its most recent earnings report. Bank of New York Mellon reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bank of New York Mellon Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $37.85B | 31.76 | 20.41% | 0.48% | 16.12% | 25.72% | |
72 Outperform | $9.60B | 22.67 | 17.54% | 1.89% | 1.59% | -1.40% | |
72 Outperform | $3.81B | 16.58 | 71.16% | 0.67% | 22.91% | 21.48% | |
69 Neutral | $10.04B | 8.55 | 16.46% | 1.98% | 8.19% | 51.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $100.82B | 16.33 | 14.76% | 1.60% | -1.15% | 30.83% | |
67 Neutral | $4.73B | 14.71 | 22.90% | 2.99% | 32.10% | 40.51% |
* Financial Sector Average
BNY
Bank of New York Mellon
148.59
43.31
41.14%
IBKR
Interactive Brokers
83.54
14.64
21.25%
PIPR
Piper Sandler
66.96
-12.52
-15.75%
SF
Stifel Financial
66.88
-10.14
-13.16%
HLI
Houlihan Lokey
137.38
-57.59
-29.54%
PJT
PJT Partners
148.87
-18.98
-11.31%
Bank of New York Mellon Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
BNY Mellon Issues New Series O Preferred Stock
Positive
Oct 28, 2026
On October 27, 2026, Bank of New York Mellon filed a Certificate of Designations in Delaware to establish the preferences, limitations and rights of its new Series O Noncumulative Perpetual Preferred Stock, with a liquidation preference of $100,00...
Financial Disclosures
BNY Mellon Posts Strong Third-Quarter 2026 Results
Positive
Oct 15, 2026
On October 15, 2026, BNY reported third-quarter 2026 results, highlighting diluted earnings per common share of $2.34, a pre-tax operating margin of about 39% and a return on tangible common equity of 29%. Total revenue rose 12% year over year to ...
Business Operations and StrategyRegulatory Filings and Compliance
BNY Mellon Streamlines Capital Structure After Series F Elimination
Positive
Sep 22, 2026
On September 22, 2026, Bank of New York Mellon filed a Certificate of Elimination in Delaware to remove all provisions related to its Series F Noncumulative Perpetual Preferred Stock from its Restated Certificate of Incorporation. This action foll...
Business Operations and Strategy
BNY Mellon to Redeem Series F Preferred Shares
Neutral
Aug 20, 2026
On August 20, 2026, BNY announced it will redeem all 10,000 outstanding shares of its Series F Noncumulative Perpetual Preferred Stock and the associated 1,000,000 depositary shares. The redemption is scheduled for the dividend payment date of Sep...
Business Operations and StrategyExecutive/Board Changes
BNY Mellon Adds Independent Director to Strengthen Governance
Positive
Aug 13, 2026
On August 11, 2026, BNY’s board elected Vikram “Vik” Malhotra, a senior partner at McKinsey Company since 1998, as an independent director effective October 1, 2026. His appointment will expand BNY’s board to 12 members, 1...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
BNY Mellon Issues New Callable Senior Medium-Term Notes
Positive
Aug 12, 2026
On August 12, 2026, BNY Mellon issued $300 million of floating rate callable senior medium-term notes due 2030, $1.2 billion of 4.755% fixed-to-floating rate callable senior medium-term notes due 2030, and $1 billion of 5.182% fixed-to-floating ra...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.