EarningsQ2 2026 Earnings Report
MX:STT Q2 2026 EPS Results
Actual EPS$66.05
Consensus EPS$60.38
Beat/MissBeat by +$5.66
One Year Ago EPS$45.78
MX:STT Q2 2026 Revenue Results
Actual Revenue$102.69B
Expected Revenue$70.26B
Beat/MissBeat by +$32.43B
YoY Revenue Growth+3.20%
Earnings Announcement Details
QuarterQ2 2026
Date07/16/2026
TimeBefore Open
Conference CallThursday, July 16, 2026
MX:STT Upcoming Earnings
State Street's next earnings date is estimated for October 14, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:STT Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive message: State Street reported record revenues, strong EPS growth, expanding margins and ROTCE, robust asset and inflow metrics, and meaningful progress across markets and investment management. Management raised 2026 guidance, set ambitious medium‑term targets (35% pretax margin; mid‑20s ROTCE), and outlined a $1B transformation program to drive productivity and revenue uplift. Notable near‑term headwinds include a decline in software services revenue (driven by timing of renewals), higher expenses tied to revenue‑related costs and strategic investments, one‑time transformation costs (~$500M), and the early‑stage nature/regulatory uncertainty of digital asset initiatives. Overall, highlights materially outweigh lowlights given strong operating performance, upgraded guidance, capital returns, and a clear transformation plan — supporting a Positive sentiment.Company Guidance
Record Revenue and Strong EPS Performance
Total quarterly revenue rose 17% year‑over‑year to a record $4.0 billion; GAAP EPS for 2Q26 was $3.65 vs. $2.17 in 2Q25. Excluding prior-year notable items, earnings grew ~44% year‑over‑year driven by record fee revenue, record servicing, management and FX trading revenues, and record net interest income.
Fee Revenue and Net Interest Income Growth
Fee revenue increased 16% year‑over‑year to $3.2 billion. Net interest income (NII) was $860 million, up 18% year‑over‑year, with net interest margin (NIM) expanding ~17 basis points to 113 basis points.
Material Margin and ROE Expansion
Pretax margin expanded ~470 basis points year‑over‑year to 34%; return on tangible common equity (ROTCE) rose by over 6 percentage points to approximately 26%. The quarter represented the tenth consecutive quarter of positive operating leverage (excluding notable items).
Record AUM/AUCA and Strong Net Inflows
Assets Under Custody and Administration (AUCA) reached a record $57.9 trillion, up 18% year‑over‑year. Assets Under Management (AUM) finished at a record $6.3 trillion, up 23% year‑over‑year. Net inflows totaled $114 billion in the quarter (fifth consecutive quarter of positive organic growth), including $66 billion in index/ETF and $35 billion in cash inflows.
Markets Franchise Momentum
FX trading services revenue increased 27% year‑over‑year (ex‑notable item) to $494 million on record client volumes; securities finance revenue rose 19% year‑over‑year — contributing to revenue diversification and stronger markets performance.
Investment Management Wins & Product Innovation
Investment Management delivered management fees of $772 million (up 29% YoY) and announced strategic product initiatives: tokenized money‑market servicing capability (intent to deliver by year‑end subject to approvals), SPYM selected as the exclusive default ETF for US 'Trump' accounts, a strategic alpha partnership for co‑branded active ETFs, plus 38 new products launched in the quarter (including tokenized solutions and a stablecoin reserves fund).
Improved Full‑Year Outlook and Medium‑Term Targets
Full‑year 2026 outlook raised: fee revenue growth now expected 12–13% (up from 7–9%), NII growth 14–15% (up from 8–10%), expenses expected to rise ~8% (vs prior 5–6%) with ~500 bps of positive operating leverage implying ~32% pretax margin for 2026. New medium‑term targets: expand pretax margin to 35% and lift ROTCE to the mid‑20s over the cycle.
Transformation Program and Efficiency Targets
Announced a technology and AI‑enabled transformation expected to deliver ~$1.0 billion of run‑rate benefits by 2029 (approximately 75% expense savings, 25% revenue uplift). The program is expected to drive ~$750 million of expense productivity and ~$250 million of incremental revenue over the medium term.
Capital Returns and Strong Capital Position
Returned $631 million to shareholders in the quarter ($400M share buybacks, $231M dividends). Announced a 10% increase in the quarterly common dividend to $0.92 per share beginning in Q3. CET1 and Tier 1 leverage ratios were 10.8% and 5.3% respectively at quarter‑end; medium‑term CET1 target ~11% with a targeted total payout ratio of ~80%.
Operational Discipline and Productivity
Despite revenue and strategic investment, headcount declined ~3% year‑over‑year reflecting productivity focus. Expenses up 10% YoY were largely tied to revenue‑related costs (~6 percentage points), strategic investments (~2.5 points) and underlying run‑the‑bank net of productivity (~1.5 points). Management cites ongoing positive operating leverage and productivity gains.
MX:STT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed