State Street Corporation reported earnings per share (EPS) of $3.65 for the second quarter of 2026, a 68% increase from $2.17 in the prior year, driven by a 44% rise in earnings and a 17% increase in total revenue to a record $4.05 billion. The results topped Wall Street expectations of $3.29 per share on revenue of $3.88 billion. The firm announced new medium-term financial targets, aiming for a 35% pre-tax margin and a return on tangible common equity (ROTC) in the mid-20s, supported by strategic initiatives in digital assets, wealth services, and alternatives.

Operational Metrics

The following table outlines State Street's key operational metrics for the second quarter of 2026:

Revenue Drivers

Fee revenue rose 17%, driven by higher Servicing and Management fees along with higher FX trading services revenue. Servicing fees increased 13% year over year, and management fees jumped 29% year over year, while foreign exchange trading surged 26% year over year. Software services fell 2% year over year, while securities finance revenue grew 19% year over year in the quarter. Net interest income rose 18% year over year to $860 million, driven by a 17-basis-point expansion in net interest margin.

Strategic and Financial Outlook

CEO Ron O’Hanley highlighted that the company delivered record total revenue, along with all-time highs in assets under custody and administration and assets under management during the quarter. He noted this performance drove strong year-over-year operating leverage and marked the 10th consecutive quarter of positive operating leverage excluding notable items. The company continues to focus on technology and AI-enabled transformation to improve productivity, targeting $1 billion in run-rate transformation benefits by 2029. Approximately 75% of these benefits are expected to come from expense productivity, with the remaining 25% from revenue enhancements. The firm raised its full-year 2026 outlook for fee revenue growth to 12–13% and net interest income growth to 14–15%.

Capital Returns

The bank returned $631 million to shareholders during the quarter, including $400 million in share repurchases and $231 million in dividends, or 84 cents per share. Following the release of the Federal Reserve’s stress test results, the company declared a 10% per share increase to its third quarter common stock dividend to $0.92, reflecting the resilience of its franchise and its continued focus on returning capital to shareholders. State Street plans a total payout ratio of approximately 80% over the medium term.

State Street Corporation announced a quarterly cash dividend of $0.92 per share on its common stock. The dividend is payable on October 13, 2026 to shareholders of record at the close of business on October 1, 2026. Additionally, the company declared cash dividends on four series of its non-cumulative perpetual preferred stock.

Preferred Stock Dividends

Dividends were declared on Series G, I, J, and K preferred stock, with payments scheduled for September 15, 2026. The record date for these series is the close of business on September 1, 2026.

Company Overview

State Street Corporation provides financial services to institutional investors, including investment servicing, investment management, and research and trading. As of March 31, 2026, the company reported $54.5 trillion in assets under custody and/or administration and $5.6 trillion in assets under management. State Street operates in more than 100 geographic markets and employs approximately 51,000 people worldwide.