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Bank of New York Mellon
(NYSE:BNY)
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Rating:72Outperform
Price Target:
$171.00
â–²(26.57% Upside)
Action:Reiterated
Date:07/15/26
BNY scores well overall on strong technical momentum and a notably positive, guidance-raising earnings call that points to continued operating leverage. The biggest constraint is fundamentals risk: higher recent leverage and sharply weaker, volatile free cash flow reduce confidence in near-term cash consistency. Valuation is acceptable but not compelling, with a mid-range P/E and modest yield.
Positive Factors
Scale & Market Position
Very large custody and asset-servicing scale with rising assets under custody/administration and AUM supports durable fee revenues, client stickiness, and pricing power. Leading market share in debt servicing reduces competitive pressure and underpins long-term stable revenue generation across cycles.
Negative Factors
Rising Leverage
A material step-up in leverage and higher debt balances reduce financial flexibility and increase sensitivity to funding costs and regulatory constraints. Elevated leverage can limit capacity for future strategic investments or buybacks and raises balance-sheet risk if market or interest conditions shift.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Market Position
Very large custody and asset-servicing scale with rising assets under custody/administration and AUM supports durable fee revenues, client stickiness, and pricing power. Leading market share in debt servicing reduces competitive pressure and underpins long-term stable revenue generation across cycles.
Read all positive factors
Bank of New York Mellon Key Performance Indicators (KPIs)
Any
Assets Under Management
Indicates the total market value of assets managed on behalf of clients, reflecting the company's ability to attract and retain client investments, which drives fee-based revenue.
Indicates the total market value of assets managed on behalf of clients, reflecting the company's ability to attract and retain client investments, which drives fee-based revenue.
Data provided by:
The Fly
The FlyBank of New York Mellon (BNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.83B
Dividend Yield1.71%
Average Volume (3M)3.89M
Price to Earnings (P/E)19.0
Beta (1Y)0.94
Revenue Growth1.91%
EPS Growth31.72%
CountryUS
Employees47,200
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)8.13
Shares Outstanding686,379,000
10 Day Avg. Volume2,947,056
30 Day Avg. Volume3,889,003
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 Cap-0.32
Enterprise Value/Revenue-0.82
Enterprise Value/Gross Profit-1.63
Enterprise Value/Ebitda-3.58
Forecast
1Y Price Target
$154.36Price Target Upside14.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)8.92
Revenue Forecast (FY)$21.66B
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 mainly by charging fees for providing investment services and investment management, and by earning net interest income from interest-earning assets funded by deposits and other liabilities.
1) Fee-based investment services revenu...
Bank of New York Mellon Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q2-2026)
| Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit revenue growth, robust NII expansion, meaningful operating leverage, rising margins and ROE, successful activation of platform and commercial models, clear progress on AI and digital asset initiatives, and renewed full‑year guidance. Near-term cautions include typical seasonality (tough Q3 comps), deposit margin dynamics, continued sensitivity to market levels and elevated compensation/expense investments. Overall, positive execution and constructive outlook outweigh the manageable near-term challenges.Positive Updates
Strong EPS and Revenue Growth
Reported EPS of $2.45, up 27% year over year; total revenue of $5.7 billion, up 13% year over year, driven by broad-based business growth.
Negative Updates
Expense and Compensation Pressure
Total expenses rose to $3.4 billion, up 7% year over year (three quarters of the increase revenue-related; remainder from investments and salary increases); observers noted headcount down ~7% YoY while compensation per employee increased (analyst cited ~+8% per head), indicating wage/incentive cost pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS and Revenue Growth
Reported EPS of $2.45, up 27% year over year; total revenue of $5.7 billion, up 13% year over year, driven by broad-based business growth.
Read all positive updates
Company Guidance
BNY raised its mid‑year 2026 outlook, now expecting total revenue excluding notable items to grow 10–11% year‑over‑year (market‑dependent), net interest income to increase 12–13% YoY, and expenses excluding notable items to rise 6–7% YoY — together implying roughly 400 basis points of positive operating leverage for 2026; management assumes current market‑implied forward interest rates and a broadly constructive operating backdrop with normal seasonal patterns (Q3 seasonally slower) and expects a quarterly tax rate of about 23% for the last two quarters.Bank of New York Mellon Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.65B | 40.44B | 39.55B | 33.79B | 19.80B | 15.86B |
| Gross Profit | 20.54B | 19.79B | 18.19B | 17.37B | 16.15B | 15.86B |
| EBITDA | 9.37B | 8.91B | 7.65B | 6.17B | 5.26B | 6.51B |
| Net Income | 5.96B | 5.55B | 4.53B | 3.30B | 2.56B | 3.76B |
Balance Sheet | ||||||
| Total Assets | 561.52B | 472.30B | 416.06B | 409.88B | 405.78B | 444.44B |
| Cash, Cash Equivalents and Short-Term Investments | 254.38B | 190.69B | 200.61B | 238.93B | 225.56B | 266.75B |
| Total Debt | 53.27B | 33.88B | 45.44B | 46.24B | 43.19B | 38.25B |
| Total Liabilities | 516.20B | 427.49B | 374.30B | 368.97B | 364.93B | 401.05B |
| Stockholders Equity | 44.78B | 44.31B | 41.32B | 40.77B | 40.73B | 43.03B |
Cash Flow | ||||||
| Free Cash Flow | 1.46B | 5.18B | -782.00M | 4.69B | 13.72B | 1.62B |
| Operating Cash Flow | 3.31B | 6.73B | 687.00M | 5.91B | 15.07B | 2.84B |
| Investing Cash Flow | -109.20B | -44.28B | -9.48B | -5.81B | 19.87B | 19.67B |
| Financing Cash Flow | 106.92B | 39.71B | 6.34B | -3.52B | -33.65B | -21.96B |
Bank of New York Mellon Technical Analysis
Positive
135.10
Price Trends
141.65
Positive
132.02
Positive
122.43
Positive
Market Momentum
3.21
Negative
67.20
Neutral
78.13
Neutral
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 135.1 is below the 20-day moving average (MA) of 147.35, below the 50-day MA of 141.65, and above the 200-day MA of 122.43, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 67.20 is Neutral, neither overbought nor oversold. The STOCH value of 78.13 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $34.07B | 19.44 | 14.45% | 2.21% | -5.75% | -10.69% | |
72 Outperform | $103.83B | 19.00 | 13.48% | 1.71% | 1.91% | 31.72% | |
72 Outperform | $46.59B | 12.71 | 61.59% | 1.26% | 6.43% | 36.14% | |
71 Outperform | $17.06B | 24.73 | 6.69% | 5.33% | 3.11% | 89.49% | |
71 Outperform | $49.31B | 18.35 | 11.09% | 2.43% | 1.43% | 10.86% | |
68 Neutral | $12.59B | -19.41 | -1.86% | 3.08% | 11.02% | -218.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BNY
Bank of New York Mellon
154.50
61.10
65.41%
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518.60
2.82
0.55%
BEN
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44.60%
IVZ
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77.64%
STT
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183.65
84.20
84.67%
NTRS
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186.64
65.78
54.43%
Bank of New York Mellon Corporate Events
Stock BuybackDividends
BNY Mellon Plans Dividend Hike, Continues Share Buybacks
Positive
Jun 24, 2026
On June 24, 2026, Bank of New York Mellon said it plans to raise its quarterly common dividend by 19%, from $0.53 to $0.63 per share as early as the third quarter of 2026, pending board approval. The announcement follows the Federal Reserve’...
Business Operations and StrategyRegulatory Filings and Compliance
Bank of New York Mellon Eliminates Series H Preferred
Neutral
Jun 23, 2026
On June 23, 2026, Bank of New York Mellon Corporation filed a Certificate of Elimination in Delaware to remove from its Restated Certificate of Incorporation all provisions related to its Series H Noncumulative Perpetual Preferred Stock. This fili...
Business Operations and Strategy
BNY Mellon Redeems Series H Preferred Depositary Shares
Neutral
Jun 12, 2026
On June 12, 2026, BNY announced it will redeem all 5,825 outstanding shares of its Series H Noncumulative Perpetual Preferred Stock and the corresponding 582,500 depositary shares. The redemption is scheduled for June 20, 2026, the regular dividen...
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.