State Street (NYSE:STT) Posts Earnings Results, Beats Expectations By $0.15 EPS

State Street (NYSE:STT) issued its quarterly earnings data on Friday. The asset manager reported $2.97 EPS for the quarter, topping the consensus estimate of $2.82 by $0.15, Zacks reports. The business had revenue of $3.67 billion for the quarter, compared to the consensus estimate of $3.57 billion. State Street had a return on equity of 13.37% and a net margin of 13.14%.The firm’s revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the business posted $2.60 EPS.

Here are the key takeaways from State Street’s conference call:

• State Street closed 2025 with record fee and total revenue, delivering Q4 EPS growth of 14% year-over-year (ex-notable items) and full-year EPS of $10.30 (+19%), with pre-tax margin near 31% ex-notables and eight consecutive quarters of positive operating leverage.
• Client balances drove scale — AUCA reached a record $53.8 trillion and AUM hit an all-time high of $5.7 trillion, supporting record management fee revenue (+15% Q4) and double‑digit growth in private markets servicing fees (+12%).
• Strategic expansion accelerated as management launched a digital asset platform for tokenization, made a minority investment in Apex to grow wealth services, and introduced 134 new investment products in 2025 to pursue faster‑growing market segments.
• The operational transformation is delivering results — State Street achieved $500 million of productivity savings in 2025, expects comparable savings in 2026, plans to embed AI broadly, and guides to >100 bps of operating leverage and roughly a 30% full‑year pre‑tax margin in 2026.
• Short‑term headwinds and uncertainties include a 15% decline in software & processing fees (driven by lower on‑prem renewals), $206 million of Q4 pre‑tax notable items, and a conservative 2026 outlook that assumes flat markets with only 4–6% fee growth and low‑single‑digit NII upside.

State Street Trading Down 6.1%

Shares of NYSE:STT opened at $128.00 on Friday. The company’s 50-day moving average price is $125.27 and its two-hundred day moving average price is $117.20. State Street has a one year low of $72.81 and a one year high of $137.05. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.59 and a quick ratio of 0.59. The stock has a market capitalization of $35.75 billion, a PE ratio of 13.60, a price-to-earnings-growth ratio of 0.86 and a beta of 1.43.

State Street Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, January 12th. Shareholders of record on Friday, January 2nd were given a dividend of $0.84 per share. The ex-dividend date of this dividend was Friday, January 2nd. This represents a $3.36 annualized dividend and a yield of 2.6%. State Street’s payout ratio is 35.56%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on STT shares. Zacks Research cut State Street from a “strong-buy” rating to a “hold” rating in a report on Monday, December 1st. Wall Street Zen upgraded shares of State Street from a “sell” rating to a “hold” rating in a report on Saturday. Weiss Ratings reissued a “buy (b)” rating on shares of State Street in a research report on Wednesday, October 8th. Evercore ISI raised their price objective on shares of State Street from $117.00 to $128.00 and gave the stock an “outperform” rating in a report on Tuesday, September 30th. Finally, Truist Financial reaffirmed a “hold” rating and issued a $138.00 target price (up from $131.00) on shares of State Street in a research note on Wednesday, January 7th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $133.77.

Insider Buying and Selling at State Street

In related news, EVP Michael L. Richards sold 1,500 shares of State Street stock in a transaction dated Monday, October 27th. The stock was sold at an average price of $117.24, for a total value of $175,860.00. Following the sale, the executive vice president owned 38,626 shares of the company’s stock, valued at approximately $4,528,512.24. The trade was a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.29% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC acquired a new stake in shares of State Street in the 4th quarter valued at approximately $296,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in State Street by 2.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,223 shares of the asset manager’s stock worth $2,885,000 after acquiring an additional 918 shares in the last quarter. NewEdge Advisors LLC lifted its stake in State Street by 105.2% in the first quarter. NewEdge Advisors LLC now owns 10,193 shares of the asset manager’s stock valued at $913,000 after acquiring an additional 5,226 shares during the last quarter. Empowered Funds LLC grew its position in shares of State Street by 220.1% in the 1st quarter. Empowered Funds LLC now owns 23,263 shares of the asset manager’s stock valued at $2,065,000 after acquiring an additional 15,996 shares during the period. Finally, Woodline Partners LP increased its stake in shares of State Street by 38.4% during the 1st quarter. Woodline Partners LP now owns 24,372 shares of the asset manager’s stock worth $2,182,000 after purchasing an additional 6,767 shares during the last quarter. 87.44% of the stock is currently owned by institutional investors.

Key Headlines Impacting State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: Q4 revenue and core results beat estimates — State Street reported stronger-than-expected revenue and NII-driven fee growth, with EPS above consensus on the company release and analyst notes, supporting the firm’s top-line momentum. State Street Q4 Earnings Beat
• Positive Sentiment: Record assets under management/custody — State Street finished 2025 with record AUC/A and AUM (reported ~$5.7T), which underpins fee revenue stability and product distribution. SPDR Issuer State Street Ends 2025 With Record $5.7 Trillion AUM
• Positive Sentiment: Strategic expansion into digital assets — State Street launched a Digital Asset / tokenization platform to support tokenized MMFs, ETFs and custody services, which could drive new fee streams over time. State Street Launches Digital Asset Platform
• Neutral Sentiment: Company presentation and analyst commentary — Management hosted the scheduled earnings call and released slides; several analysts reiterated positive ratings and elevated price targets, but noted much of the good news was already priced in. Q4 Presentation / Slides
• Negative Sentiment: Rising expenses and restructuring charges weighed on profit — Multiple outlets highlighted a meaningful jump in expenses and restructuring costs that reduced Q4 profit and prompted a higher expense outlook for 2026; that guidance and cost uncertainty drove the selloff. State Street’s fourth-quarter profit falls as expenses weigh
• Negative Sentiment: Investor caution on cost trajectory — Market coverage flagged that, despite a paper beat, elevated operating costs and restructuring guidance raise questions about margin recovery and near-term profitability. State Street Drops After Q4 Results

State Street Company Profile

State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.

State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.