State Street Stock Earnings Reports

State Street reported a strong start to 2026 with record quarterly revenue of $3.8 billion, fee revenue of $3.0 billion, and net interest income (NII) of $835 million. Reported EPS rose 22% year-over-year and adjusted EPS rose 39% year-over-year; the firm delivered positive operating leverage for the ninth consecutive quarter (excluding notable items) and expanded pretax margins and ROTCE (~20%). Key drivers included: FX trading (29% YoY revenue growth, record client volumes), NII (NIM expanded to 116 bps, +17% YoY NII), investment management inflows (AUM $5.6T, $49B net inflows, $25B into ETFs), and continued SaaS/software momentum (ARR +12%, backlog +11%). AUCA reached a record $54.5T. Expenses guidance was raised (now +5%–6% for 2026) reflecting higher revenue-related costs and strategic investments; fee revenue growth guidance was raised to 7%–9% and NII guidance to 8%–10%. Capital remains strong (standardized CET1 10.6% at quarter-end, average levels at the higher end of 10%–11%); Q1 capital return totaled $633M (share repurchases $400M + dividends $233M) and the firm expects an ~80% total payout ratio. Strategic priorities highlighted: scaling digital asset/tokenization capabilities, growing alternatives and wealth services (Charles River + Apex partnership), expanding ETF market share (notably SPYM), and embedding AI across the platform (200+ AI use cases, 70 live) to drive productivity and future revenue/efficiency gains. Management expects tokenization and on-chain liquidity products to create both retention and new revenue, and plans to provide a detailed multi-year growth and transformation update in July. Risks and areas to monitor: FX/market volatility moderation vs. Q1, currency translation effects on expenses, RWA/CET1 variability at quarter-ends, modest notable items ($130M pretax), and continued scrutiny of certain private-credit/semi-liquid lending segments (NDFI disclosure provided).