State Street beats Q2 estimates as record revenue, assets under custody, and fee income improve.
Stock Earnings Results
July 16, 2026
Table of Contents
July 16, 2026
State Street Corporation (NYSE: STT) reported second-quarter 2026 results above expectations, supported by record total revenue, higher assets under custody and administration, higher assets under management, and stronger fee revenue.
State Street is a global financial services company that provides investment servicing, investment management, research, trading, custody, fund administration, and related services for institutional investors.
The company reported EPS of $3.65, above estimates of $3.30, representing a 10.6% earnings surprise. The dashboard showed revenue of $6.03 billion, above estimates of $3.85 billion, with revenue growth of 4.5%.
State Street reported total revenue of $4.05 billion, up 17% from the prior-year quarter.
Fee revenue increased 17% to $3.19 billion.
Net interest income increased 18% to $860 million, helped by a 17-basis-point increase in net interest margin.
Net income increased 56% to $1.08 billion.
Diluted EPS increased 68% to $3.65 from $2.17 a year earlier.
Pre-tax margin improved to 34.3%, while return on equity was 16.7% and return on tangible common equity was 25.5%.
Assets under custody and administration increased 18% to a record $57.9 trillion.
Assets under management increased 23% to a record $6.3 trillion.
The increase was driven mainly by higher market levels, flows, and net new business.
State Street reported $384 billion in new servicing AUC/A wins during the quarter and $87 million in new servicing fee revenue wins.
The company also ended the quarter with $2.9 trillion in AUC/A to be installed in future periods.
Servicing fees increased 13% year-over-year to $1.47 billion.
Management fees increased 29% to $772 million, driven by higher average market levels and $114 billion of quarterly net inflows.
Foreign exchange trading services revenue increased 26% to $494 million, helped by higher client volumes, especially in Asia-Pacific.
Securities finance revenue increased 19% to $150 million, driven by higher client lending balances.
Software services revenue declined 2% to $166 million, reflecting lower on-premises revenue after elevated renewal activity in the year-ago period.
State Street returned $631 million of capital to common shareholders during the quarter.
That included $400 million of share repurchases and $231 million in declared dividends.
The company also declared a 10% per-share increase to its third-quarter common stock dividend after the Federal Reserve’s stress test results.
State Street’s standardized CET1 ratio was 10.8% at quarter-end.
State Street delivered a strong quarter across servicing, asset management, trading, and capital returns.
Revenue reached a record level, EPS beat expectations, AUC/A and AUM both hit records, and management pointed to continued operating leverage. Fee revenue growth also showed broad momentum across servicing, management fees, FX trading, and securities finance.
The key question is whether State Street can sustain this growth if market levels become less supportive.
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