State Street Posts Record $4.0B in Q2 Revenue, Lifts FY2026 Guidance, and Lays Out Bold Medium-Term Goals
STT sits 84% above its 52-week low of $101.98.
Summary
State Street delivered record Q2 2026 revenue of $4.0B and EPS of $3.65, raised its full-year outlook, and unveiled new medium-term financial targets including a 35% pre-tax margin goal.
Key Events · Earnings and Guidance · STT
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Record Q2 Revenue and Earnings
Total revenue reached $4.0B, a 17% increase year-over-year, while diluted EPS surged 68% to $3.65. Fee revenue grew 17% to $3.2B, and net interest income rose 18% to $860M.
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Raised FY2026 Outlook
Full-year fee revenue is now expected to rise ~12-13% (up from ~7-9%), NII to increase ~14-15% (up from ~8-10%), and expenses to grow ~8% +/- (up from ~5-6%), delivering roughly 500 basis points of operating leverage.
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New Medium-Term Targets
Over a 3-5 year horizon, management is targeting a 35% pre-tax margin and mid-20s% ROTCE, supported by approximately $1B in annual run-rate transformation benefits by 2029.
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Record AUC/A and AUM
Assets under custody/administration climbed 18% year-over-year to a record $57.9T, and assets under management rose 23% to a record $6.3T, driven by market appreciation and net inflows.
Analysis · STT · Finance
A standout second quarter saw total revenue jump 17% to a record $4.0 billion, while diluted EPS of $3.65 easily outpaced the prior year's $2.17. Fee revenue climbed 17%, fueled by record servicing and management fees, and net interest income advanced 18% on a wider margin. The company raised its full-year 2026 guidance across all key metrics and introduced new medium-term targets—a 35% pre-tax margin and mid-20s% ROTCE—underpinned by a $1 billion annual transformation savings plan. With the stock trading near its 52-week high, these results underscore the franchise's growing momentum.
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At the time of this filing, STT was trading at $187.83 on NYSE in the Finance sector, with a market capitalization of approximately $51.6B. The 52-week trading range was $101.98 to $186.99. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.