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Bank of New York Mellon
(NYSE:BNY)
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Rating:66Neutral
Price Target:
$166.00
â–²(1.44% Upside)
Action:Downgraded
Date:09/23/26
The score is led by improving fundamentals but tempered by weakening recent revenue and mixed cash conversion, alongside a bearish technical setup (below key moving averages with negative MACD). Offsetting these are a constructive earnings-call outlook with raised guidance and meaningful operating leverage, plus a reasonable P/E with a modest dividend yield.
Positive Factors
Scale and client asset growth
Growth in assets under custody, administration, and management expands the fee bases supporting BNY’s core investment-services model. Its enormous client-asset scale and broad institutional reach can reinforce operating efficiency, deepen relationships, and support recurring revenue over the next several quarters.
Negative Factors
Recent revenue contraction
The recent top-line reversal weakens confidence that BNY’s longer-term revenue expansion is translating into consistent near-term growth. Although profitability improved, sustained revenue contraction could limit operating leverage, reduce reinvestment capacity, and make future earnings more dependent on margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and client asset growth
Growth in assets under custody, administration, and management expands the fee bases supporting BNY’s core investment-services model. Its enormous client-asset scale and broad institutional reach can reinforce operating efficiency, deepen relationships, and support recurring revenue over the next several quarters.
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
$95.69B
Dividend Yield1.65%
Average Volume (3M)3.50M
Price to Earnings (P/E)15.9
Beta (1Y)0.90
Revenue Growth0.38%
EPS Growth31.39%
CountryUS
Employees46,500
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)8.63
Shares Outstanding678,504,150
10 Day Avg. Volume3,378,842
30 Day Avg. Volume3,500,553
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 Cap0.48
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda4.72
Forecast
1Y Price Target
$164.62Price Target Upside0.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)9.24
Revenue Forecast (FY)$22.23B
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:Jul 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 15, 2027
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
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 | 525.02B | 472.30B | 416.06B | 409.88B | 405.78B | 444.44B |
| Cash, Cash Equivalents and Short-Term Investments | 163.14B | 190.69B | 200.61B | 238.93B | 225.56B | 266.75B |
| Total Debt | 35.18B | 33.88B | 45.44B | 46.24B | 43.19B | 38.25B |
| Total Liabilities | 479.67B | 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
Negative
163.65
Price Trends
155.16
Negative
151.69
Negative
137.21
Positive
Market Momentum
-4.31
Positive
20.06
Positive
22.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNY, the sentiment is Negative. The current price of 163.65 is above the 20-day moving average (MA) of 146.41, above the 50-day MA of 155.16, and above the 200-day MA of 137.21, indicating a neutral trend. The MACD of -4.31 indicates Positive momentum. The RSI at 20.06 is Positive, neither overbought nor oversold. The STOCH value of 22.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $39.64B | 33.26 | 20.51% | 0.40% | 15.77% | 31.49% | |
72 Outperform | $3.50B | 14.72 | 71.16% | 0.76% | 22.91% | 21.48% | |
71 Outperform | $9.05B | 20.49 | 17.78% | 2.08% | 1.59% | -1.40% | |
70 Outperform | $10.52B | 8.17 | 16.07% | 1.96% | 11.04% | 60.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.51B | 14.16 | 22.90% | 3.10% | 32.10% | 40.51% | |
66 Neutral | $95.69B | 15.95 | 14.18% | 1.65% | 0.38% | 31.39% |
* Financial Sector Average
BNY
Bank of New York Mellon
137.64
30.58
28.56%
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84.14
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21.11%
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64.48
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67.80
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HLI
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124.78
-64.70
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PJT
PJT Partners
132.18
-43.11
-24.59%
Bank of New York Mellon Corporate Events
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...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
BNY Mellon Launches New Series N Preferred Offering
Neutral
Jul 23, 2026
On July 22, 2026, The Bank of New York Mellon Corporation filed a Certificate of Designations in Delaware to establish the preferences, limitations and rights of its Series N Noncumulative Perpetual Preferred Stock, with a liquidation preference o...
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...
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.