State Street Stock Earnings Reports

State Street reported strong 3Q25 results with EPS of $2.78 (+23% YoY), total revenue up 9% and record AUCA of $51.7 trillion and AUM of $5.4 trillion. The firm achieved its seventh consecutive quarter of positive total operating leverage (ex-notables), delivered a 31% pretax margin and 21% ROTCE, and continued to generate robust fee growth across servicing, management fees, FX and securities finance. Management highlighted strategic progress: launching a digital asset platform, a strategic minority investment and partnership with Apex to expand global digital wealth custody and clearing, and continued product innovation in ETFs and private-market offerings. Backlog for servicing fees rose to ~$400 million (up ~40% YoY) with installations progressing and planned FY25 servicing fee win target of $350–$400 million on track. Net interest income was roughly flat YoY ($715 million) with NII/NIM expected to stabilize and modestly improve into 4Q and 2026 due to reinvestment tailwinds and hedge runoff. Expenses rose ~5% YoY driven by investments and FX but productivity initiatives delivered ~$125 million of YoY savings in the quarter (≈$370M YTD) and remain on track for a $500M full‑year target. Capital returned ~$1.5 billion YTD, including an 11% dividend increase to $0.84/share; management targets ~80% total payout for 2025 while keeping capacity to deploy capital to strategic growth. Management upgraded FY25 fee revenue guidance to 8.5–9% growth (from ~5–7%), expects full‑year NII modestly down vs. 2024, and now models FY expense growth near ~4.5% given incremental investments. Overall message: credible execution, accelerating product/wealth/digital initiatives, improving operating leverage and a disciplined approach to capital deployment.