State Street (STT) investor relations material

Executive summary

• Q3 revenue was $4.004B, up 13% YoY; net income rose 27% to $1.09B and diluted EPS increased 33% to $3.69.

• Operating leverage was 531 bps; pre-tax margin reached 34.6% and ROTCE was 25.1%.

• Record AUC/A of $59.173T and AUM of $6.306T rose 15% and 16% YoY, respectively.

• Record servicing and management fees, FX client volumes and broad client activity supported franchise momentum.

• Strategy emphasized integrated client offerings, alternatives, digital assets, wealth, technology and AI-enabled transformation.

Financial highlights

• Fee revenue rose 11% to $3.140B; servicing fees increased 10% to $1.492B, management fees 20% to $797M, and FX trading services 17% to $427M; other fee revenue fell 29% to $98M.

• NII increased 21% to $864M; NIM rose 16 bps YoY to 1.12%, down 1 bp sequentially.

• Expenses increased 8% to $2.620B, mainly from revenue-related costs and strategic investments; they declined 1% sequentially, mainly on lower incentive compensation.

• No notable items were recorded in Q3 2026, Q2 2026 or Q3 2025; total operating leverage was 531 bps.

• Nine-month revenue rose 15% to $11.85B, net income increased 34% to $2.94B, and diluted EPS rose 41% to $9.82.

Outlook and guidance

• FY26 fee revenue growth outlook increased to 13%-14% from 12%-13%; NII growth outlook rose to 15%-16% from 14%-15%.

• FY26 expenses are expected to rise 8%-8.5%, with positive operating leverage above 500 bps; assumptions include flat global equity markets and rates broadly following forward curves.

• Q4 NII is expected to grow sequentially, likely toward the upper end of the guided range; average deposits are expected at $275B-$280B.

• Medium-term targets include a 35% pre-tax margin, mid-20s ROTCE and ~$1B of annual run-rate transformation benefits by 2029; medium-term NII growth outlook is low- to mid-single digits.

• $2.98T in servicing assets awaited installation at quarter-end; ~20% was expected to convert in the remainder of 2026 and ~65% in 2027, with most of the balance in 2028-29.