State Street (STT) investor relations material

Executive summary

• Delivered record quarterly revenues and strong year-over-year growth across all business lines in Q1 2026, supported by operational excellence and a diversified business model.

• EPS increased 22% reported and 39% excluding notable items year-over-year, driven by record fee revenue, NII, and total revenue.

• Pre-tax margin improved to 25.5% (29.0% ex-notables), with diluted EPS (ex-notables) at $2.84, up 39% year-over-year.

• Assets under custody/administration (AUC/A) reached a record $54.5T, up 17% year-over-year, and assets under management (AUM) rose 20% to $5.6T.

• Continued investment in digital platforms, AI, technology modernization, and product innovation, including digital assets and ETF expansion.

Financial highlights

• Total revenue rose 16% year-over-year to $3.8B, a record high, with fee revenue up 15% to $3.0B and net interest income up 17% to $835M.

• Expenses rose 9% year-over-year to $2.7B, mainly due to higher revenue, strategic investments, and currency translation.

• Pre-tax margin expanded by 400 basis points, and ROTCE increased by about four percentage points to 20%.

• Notable items totaled $130M pre-tax ($0.35 per share after tax), mainly from repositioning charges and a client contract re-scoping.

• Record quarterly fee revenue, net interest income, and total revenue achieved.

Outlook and guidance

• Raised full-year fee revenue growth outlook to 7%-9% (from 4%-6%) due to strong Q1 and ongoing momentum.

• NII growth now expected at 8%-10%, up from prior low double-digit guidance.

• Expense growth guidance increased to 5%-6%, reflecting higher revenue-related costs.

• Effective tax rate expected at ~22% and payout ratio at ~80% for the year.

• Management remains disciplined and focused on resilience, mindful of macro and geopolitical uncertainties, and confident in continued growth through 2026.