State Street (NYSE:STT) Issues Quarterly Earnings Results, Beats Expectations By $0.31 EPS

State Street (NYSE:STT) announced its earnings results on Thursday. The asset manager reported $3.65 EPS for the quarter, beating analysts’ consensus estimates of $3.34 by $0.31, FiscalAI reports. State Street had a net margin of 13.47% and a return on equity of 14.22%. The business had revenue of $4.05 billion during the quarter, compared to analysts’ expectations of $3.88 billion. During the same period in the prior year, the company earned $2.04 earnings per share. The firm’s revenue was up 23.3% on a year-over-year basis.

Here are the key takeaways from State Street’s conference call:

• State Street reported a very strong second quarter, with record revenue of $4.0 billion, EPS of $3.65, and 44% year-over-year earnings growth excluding prior-year notable items. The company also posted its 10th consecutive quarter of positive operating leverage.
• Management raised its full-year 2026 outlook, now expecting fee revenue growth of 12%-13% and NII growth of 14%-15%, both above prior guidance. The company said this implies roughly 500 basis points of positive operating leverage and a pre-tax margin of about 32% for 2026.
• State Street unveiled new medium-term targets of a 35% pre-tax margin and mid-20s ROTCE, supported by organic growth and productivity gains. Executives said the plan includes about $1 billion of transformation benefits by 2029.
• The company highlighted strong momentum in investment management, with AUM reaching a record $6.3 trillion and net inflows of $114 billion in the quarter. ETF and cash products drove most of the inflows, and State Street also launched new digital-asset and tokenized products.
• Capital returned to shareholders remained robust, and State Street announced a 10% increase in the quarterly dividend to $0.92 per share starting in Q3. The company said its capital position remains strong, with CET1 at 10.8% and continued share repurchases alongside dividends.

State Street Stock Down 0.8%

State Street stock opened at $185.15 on Friday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.57 and a current ratio of 0.57. The company has a market capitalization of $51.24 billion, a P/E ratio of 18.78, a PEG ratio of 0.96 and a beta of 1.42. The stock has a 50-day simple moving average of $165.17 and a 200-day simple moving average of $143.83. State Street has a fifty-two week low of $104.64 and a fifty-two week high of $192.51.

State Street Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 2.0%. This is a positive change from State Street’s previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. State Street’s dividend payout ratio is currently 34.08%.

Analyst Ratings Changes

STT has been the topic of a number of recent research reports. UBS Group set a $176.00 target price on State Street in a report on Friday, June 26th. Seaport Research Partners reissued a “buy” rating and set a $170.00 price target on shares of State Street in a report on Monday, April 20th. Bank of America raised their price objective on State Street from $160.00 to $190.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Barclays set a $165.00 price objective on State Street in a research report on Monday, April 20th. Finally, The Goldman Sachs Group boosted their price objective on State Street from $168.00 to $194.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, State Street currently has an average rating of “Moderate Buy” and a consensus target price of $173.91.

Insider Buying and Selling

In other State Street news, COO Mostapha Tahiri sold 9,611 shares of the company’s stock in a transaction on Wednesday, April 22nd. The shares were sold at an average price of $152.93, for a total transaction of $1,469,810.23. Following the completion of the transaction, the chief operating officer owned 64,642 shares in the company, valued at approximately $9,885,701.06. This represents a 12.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP W. Bradford Hu sold 9,212 shares of State Street stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total value of $1,431,084.20. Following the completion of the transaction, the executive vice president owned 59,552 shares of the company’s stock, valued at $9,251,403.20. This trade represents a 13.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 37,876 shares of company stock valued at $5,866,583 in the last quarter. 0.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On State Street

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC bought a new position in shares of State Street during the 4th quarter valued at about $296,000. Trillium Asset Management LLC purchased a new stake in State Street during the fourth quarter valued at $211,000. Seven Mile Advisory bought a new position in State Street during the third quarter valued at $209,000. Geneos Wealth Management Inc. lifted its position in State Street by 20.7% during the second quarter. Geneos Wealth Management Inc. now owns 1,490 shares of the asset manager’s stock valued at $158,000 after purchasing an additional 256 shares during the last quarter. Finally, Safe Harbor Fiduciary LLC purchased a new stake in shares of State Street during the 4th quarter valued at about $145,000. Institutional investors own 87.44% of the company’s stock.

More State Street News

Here are the key news stories impacting State Street this week:

• Positive Sentiment: State Street reported Q2 EPS of $3.65, beating estimates, while revenue of $4.05 billion also topped expectations and rose 23.3% year over year. State Street Corporation (NYSE: STT) Reports Second-Quarter 2026 Financial Results
• Positive Sentiment: Fee income and net interest income were strong, helping quarterly profit jump 56% and pushing assets under management to a record $6.3 trillion. State Street’s quarterly profit jumps 56% on strong fee income
• Positive Sentiment: Management boosted its 2026 outlook after the strong quarter, signaling confidence that momentum can continue. State Street posts Q2 beat as fee income jumps, 2026 guidance boosted
• Neutral Sentiment: Several earnings-call recaps highlighted “record” results and operational strength, but they appear to be summary coverage rather than new incremental news. State Street Signals Strength With Record Earnings Call
• Neutral Sentiment: One article flagged ETF pricing pressure as a risk, which could matter longer term, but it does not outweigh the strong quarterly results today. BNY Mellon Vs. State Street: Buy BNY Mellon for Elite Profit Margins and Avoid State Street’s Heavy ETF Pricing Pressure

State Street Company Profile

State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.

State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.