Bank of New York Mellon (NYSE:BNY) Posts Earnings Results, Beats Estimates By $0.11 EPS

Bank of New York Mellon (NYSE:BNY) released its quarterly earnings data on Thursday. The bank reported $2.37 EPS for the quarter, beating analysts’ consensus estimates of $2.26 by $0.11, FiscalAI reports. Bank of New York Mellon had a return on equity of 16.00% and a net margin of 15.52%. The business had revenue of $5.68 billion for the quarter. The company’s quarterly revenue was up 11.7% on a year-over-year basis.

Here are the key takeaways from Bank of New York Mellon’s conference call:

• Strong third-quarter results included revenue of $5.7 billion, up 12% year over year, EPS of $2.34, up 24%, a 39% pre-tax margin, and 29% return on tangible common equity. BNY generated approximately 390 basis points of positive operating leverage.
• BNY raised its 2026 outlook, now expecting nearly 500 basis points of positive operating leverage, revenue growth around the middle of a 12%-13% range, and net interest income growth of approximately 15%. The company also expects expense growth in the middle of a 7%-8% range due partly to higher revenue-related costs.
• Client momentum remained broad-based, with the 15th consecutive quarter of year-over-year sales growth. Securities Services revenue rose 15%, Market and Wealth Services revenue increased 12%, and Wealth Solutions generated $48 billion of net new assets, a 7% annualized growth rate.
• BNY is investing heavily in AI, with more than 400 AI solutions in production and its enterprise platform, Eliza, focused on generating employee capacity, improving products, and creating new client offerings. Management said AI is already producing returns and expects to invest further, but it is not separately quantifying AI-related spending or financial benefits.
• Capital ratios declined during the quarter as BNY returned approximately $1.4 billion to common shareholders, including buybacks and dividends; the CET1 ratio fell to 10.9% and the Tier 1 leverage ratio to 5.7%. Management said both remain within its target range and that capital returns should continue under its existing framework.

Bank of New York Mellon Stock Up 3.4%

Bank of New York Mellon stock opened at $142.29 on Friday. The company has a market capitalization of $96.54 billion, a P/E ratio of 16.56, a PEG ratio of 1.07 and a beta of 1.06. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.72 and a current ratio of 0.72. Bank of New York Mellon has a fifty-two week low of $103.11 and a fifty-two week high of $165.84. The stock has a 50-day simple moving average of $154.99 and a 200-day simple moving average of $146.38.

Wall Street Analysts Forecast Growth

BNY has been the subject of several recent analyst reports. Royal Bank Of Canada upped their price target on Bank of New York Mellon from $142.00 to $168.00 and gave the company a “sector perform” rating in a report on Thursday, July 16th. Weiss Ratings lowered shares of Bank of New York Mellon from a “buy (a)” rating to a “buy (a-)” rating in a research note on Thursday, August 13th. TD Cowen assumed coverage on shares of Bank of New York Mellon in a report on Thursday, October 8th. They set a “hold” rating and a $160.00 price objective on the stock. Wells Fargo & Company boosted their price objective on shares of Bank of New York Mellon from $152.00 to $162.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 16th. Finally, Citigroup reduced their price objective on shares of Bank of New York Mellon from $172.00 to $160.00 and set a “neutral” rating for the company in a research report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Bank of New York Mellon currently has an average rating of “Moderate Buy” and a consensus price target of $162.38.

Insider Activity at Bank of New York Mellon

In other news, VP Jose Minaya sold 3,520 shares of the stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $148.79, for a total value of $523,740.80. Following the completion of the sale, the vice president directly owned 176,824 shares of the company’s stock, valued at approximately $26,309,642.96. This represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Dermot Mcdonogh sold 31,800 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $155.26, for a total value of $4,937,268.00. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 38,840 shares of company stock worth $6,033,502. 0.17% of the stock is currently owned by corporate insiders.

Institutional Trading of Bank of New York Mellon

Institutional investors and hedge funds have recently bought and sold shares of the business. Focus Partners Advisor Solutions LLC purchased a new stake in Bank of New York Mellon during the 2nd quarter valued at approximately $1,128,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Bank of New York Mellon in the 2nd quarter valued at approximately $13,234,000. Engineers Gate Manager LP purchased a new position in shares of Bank of New York Mellon in the 2nd quarter valued at approximately $1,264,000. Corient Private Wealth LP purchased a new position in shares of Bank of New York Mellon in the 2nd quarter valued at approximately $48,434,000. Finally, HB Wealth Management LLC acquired a new position in shares of Bank of New York Mellon in the second quarter valued at approximately $6,238,000. Hedge funds and other institutional investors own 85.31% of the company’s stock.

Bank of New York Mellon News Roundup

Here are the key news stories impacting Bank of New York Mellon this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. BNY reported third-quarter revenue of approximately $5.68 billion, up 11.7% year over year, while adjusted EPS was reported at $2.34-$2.37 versus the $2.26 analyst consensus. Net income applicable to shareholders increased to $1.61 billion from $1.34 billion a year earlier. BNY Reports Third Quarter 2026 Results
• Positive Sentiment: Core revenue trends were favorable. Higher fee revenue, growth in net interest income and rising asset balances supported the earnings beat. Custody and administration assets reportedly reached $63.4 trillion, up 10% from the prior year, reinforcing BNY’s scale in asset servicing. BNY Q3 Earnings Beat Estimates on Fee Income and NII Growth
• Positive Sentiment: BNY maintained shareholder distributions. The board declared a quarterly common-stock dividend of $0.63 per share, payable November 9 to shareholders of record October 26, along with dividends on several preferred-stock series. BNY Declares Dividends
• Neutral Sentiment: CEO Robin Vince said current 10-year Treasury yield levels are not unprecedented, suggesting the market environment remains manageable, although interest-rate trends will continue to affect net interest income and investment activity. US 10-year Treasury Yield Levels Not Unprecedented
• Positive Sentiment: BNY completed a tokenized Treasury repurchase transaction with Citadel Securities in minutes, highlighting potential progress in blockchain-based settlement and institutional-market infrastructure. BNY Completes First Tokenized Treasury Repo
• Negative Sentiment: AI spending remains a concern. BNY said it is embedding AI across the organization but did not disclose the associated costs. The lack of visibility into investment levels and potential returns may have contributed to the negative share-price reaction despite the earnings beat. BNY AI Spending Costs

About Bank of New York Mellon

BNY, formerly known as BNY Mellon, is a global financial services company headquartered in New York City. Formed in 2007 through the merger of the Bank of New York and Mellon Financial Corporation, BNY traces its roots back to 1784, making it one of the oldest banking institutions in the United States. It was also the first company listed on the New York Stock Exchange.

BNY operates at the center of the world’s capital markets, partnering with clients to help them operate more efficiently and accelerate growth.