State Street Q2 revenue beat estimates on higher servicing and management fees

State Street

16/07/2026 12:43

Overview
U.S. custody bank's Q2 revenue rose 17% yr/yr, beating analyst expectations
Net interest income for Q2 beat analyst expectations
Diluted EPS for Q2 rose 68% yr/yr to $3.65

Outlook
State Street says it is entering a new phase with medium-term financial targets
Company expects ongoing technology and AI transformation to drive sustainable growth
State Street highlights future installations of servicing fee revenue and AUC/A

Result Drivers
FEE REVENUE GROWTH - Co said higher management fees, servicing fees, and FX trading services drove 17% yr/yr fee revenue growth
NET INTEREST INCOME - Net interest income rose 18%, reflecting an increase of 17 basis points in net interest margin
ASSET GROWTH - Record AUC/A and AUM mainly due to higher market levels, flows, and net new business

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$4.05 bln
$3.88 bln (11 Analysts)
Q2 EPS
 
$3.65
 
Q2 Net Income
 
$1.08 bln
 
Q2 Net Interest Income
Beat
$860 mln
$831.13 mln (8 Analysts)
Q2 ROE
 
16.70%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for State Street Corp is $190.00, about 1.8% above its July 15 closing price of $186.59
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)