State Street (STT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 total revenue of $4.05B, up 17% year-over-year, with EPS of $3.65, up 68%, and net income of $1.08B, up 56%, driven by strong fee and net interest income and record AUC/A and AUM.

• Delivered tenth consecutive quarter of positive operating leverage, reflecting disciplined execution and strategic momentum.

• Announced new medium-term financial targets: 35% pre-tax margin and mid-20s ROTCE, supported by core business growth, technology/AI transformation, and digital asset initiatives.

• Operations organized into Investment Servicing and Investment Management, serving institutional clients globally.

• Announced a 10% increase in the quarterly dividend to $0.92/share for Q3 2026, following strong stress test results.

Financial highlights

• Total revenue reached $4.05B, up 17% year-over-year; fee revenue rose 17% to $3.2B, and net interest income increased 18% to $860M.

• Pre-tax margin expanded to 34.3% from 25.8% a year ago; ROTCE rose to 25.5%, and ROE improved to 16.7%.

• Servicing fees grew 13% to $1.5B; AUC/A hit a record $57.9T, up 18% year-over-year.

• Management fees increased 29% to $772M; AUM reached $6.3T, up 23% year-over-year, with $114B in net inflows.

• FX trading revenue up 27% to $494M; securities finance revenue up 19%; software services revenue declined 14% but SaaS/data ARR grew 14%.

Outlook and guidance

• Raised 2026 outlook: fee revenue growth of 12%-13%, NII growth of 14%-15%, and expense growth of ~8%.

• Expect ~500 bps positive operating leverage and pre-tax margin of ~32% for 2026.

• Medium-term targets: 35% pre-tax margin and mid-20s ROTCE by 2029, with $1B in transformation benefits.

• Expect continued onboarding of $2.93T in AUC/A mandates over 24 months, with 65% in 2026.

• Dividend per share increased to $0.92 for Q3 2026, a 10% sequential rise.