Analyst Consensus ?
ConsensusHold38 ratings
Bullish1950.0%
Neutral1539.5%
Bearish410.5%
State Street Corporation · STT · FY2026 Q2 · Calendar Q3 2026
State Street Beats on Record $4B Revenue, Raises 2026 Targets
State Street's Q2 2026 extends its streak of operating leverage and revenue records, with the firm meaningfully raising 2026 growth targets. A newly announced $1 billion transformation program targeting $750 million in cost savings by 2029 and advancing digital-asset initiatives are the primary strategic drivers. The stock rose on the report but drifted roughly 5% lower over the following two weeks, suggesting the market is weighing execution risk against the ambitious medium-term targets.
Reported Before market openNYSEFinancial Services
$50.53B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$3.65
Consensus $3.34
EPS surprise
+9.3%
Reported versus consensus
Reported revenue
$4.05B
Consensus $3.88B
Revenue surprise
+4.3%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-0.5%
Event window
SPY move
-0.5%
Same window
Abnormal move
+0.0%
Stock minus SPY
Volume
2.0×
Versus trailing sessions
Subsequent drift
-5.2%
Up to 20 sessions
STTSPY benchmark
Ask FN2 about STT FY2026 Q2
Transcript, numbers and history already loaded
Why did STT fall 0.5% after beating EPS estimates in FY2026 Q2?What changed in STT's guidance and outlook in FY2026 Q2?Give me the bull and bear case for STT after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Revenue reached an all-time high of $4.05 billion, up from $3.8 billion in Q1, while EPS of $3.65 beat the $3.34 consensus by 9.3%. Management raised 2026 fee revenue growth guidance from 7-9% to 12-13% and NII growth from 8-10% to 14-15%. A new $1 billion transformation program was announced, targeting $750 million in cost savings and $250 million in incremental revenue by 2029. The dividend was increased 10% to $0.92 per share with the payout ratio moving from approximately 90% to 80%. Digital-asset initiatives including tokenized money-market and stablecoin reserves funds are planned for year-end launch subject to regulatory approval but remain under 2% of total revenue.
Guidance delta
Fee revenue growth raised from 7-9% to 12-13% for 2026. NII growth raised from 8-10% to 14-15% for 2026. New medium-term targets: 35% pretax margin and mid-20s ROTCE. Dividend increased 10% to $0.92 per share with payout ratio targeted at approximately 80% (down from ~90%). New $1B transformation program targeting $750M cost savings and $250M incremental revenue by 2029.
Key takeaways
- Q2 results beat expectations with 44% YoY earnings growth and record revenue of $4.05 billion.
- Medium-term targets raised: fee revenue growth to 12-13% and NII growth to 14-15% for 2026; pretax margin target of 35% and ROTCE in the mid-20s.
- New $1 billion transformation program targets $750M in cost savings and $250M in incremental revenue by 2029 via AI, technology simplification, and operating-model rewiring.
- Dividend increased 10% to $0.92 per share; payout ratio targeted at approximately 80% of earnings.
- Digital-asset initiatives including tokenized money-market and stablecoin funds are advancing but remain under 2% of total revenue.
Management priorities
- Launch tokenized money-market fund and stablecoin reserves fund by year-end, subject to regulatory approval.
- Roll out 38 new products and solutions, including digital-asset offerings.
- Complete migration to a product-platform operating model with AI-enabled agile teams.
- Achieve $1 billion run-rate transformation benefits by 2029.
- Expand ETF servicing and wealth-focused product launches.
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$170.89Current
$77Low
$142.84Average
$200High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 28, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| BMO Capital | Outperform | Outperform | Maintain | Oct 19, 2026 |
| Citigroup | Buy | Buy | Maintain | Oct 16, 2026 |
| Truist Securities | Hold | Hold | Maintain | Oct 15, 2026 |
| RBC Capital | Sector Perform | Sector Perform | Maintain | Oct 15, 2026 |
| Keefe, Bruyette & Woods | Outperform | Outperform | Maintain | Oct 15, 2026 |
| Evercore ISI Group | Outperform | Outperform | Maintain | Oct 15, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Oct 2, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | Jul 17, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Jul 17, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | Jul 17, 2026 |
| B of A Securities | Neutral | Neutral | Maintain | Jul 7, 2026 |
| Goldman Sachs | Buy | Buy | Maintain | Jun 30, 2026 |
| Argus Research | Buy | Buy | Maintain | Apr 21, 2026 |
| TD Cowen | Buy | Buy | Maintain | Jan 7, 2026 |
| Deutsche Bank | Hold | Hold | Maintain | Jan 22, 2025 |
| Wolfe Research | Underperform | Peer Perform | Downgrade | Jul 8, 2024 |
| UBS | Neutral | Neutral | Maintain | Apr 12, 2024 |
| Credit Suisse | Neutral | Neutral | Maintain | Jul 17, 2023 |
| Piper Sandler | Neutral | Neutral | Maintain | Jul 1, 2022 |
| Seaport Global | Buy | Buy | Maintain | Jan 5, 2022 |
| Raymond James | Strong Buy | Strong Buy | Maintain | Oct 21, 2019 |
| Bank of America | Buy | Buy | Maintain | Oct 21, 2019 |
| Buckingham Research | Buy | Buy | Maintain | Jun 12, 2019 |
| Keefe Bruyette & Woods | Underperform | Market Perform | Downgrade | Feb 25, 2019 |
| Argus | Hold | Buy | Downgrade | May 5, 2018 |
| Buckingham | Buy | Buy | Maintain | Jan 24, 2018 |
| Jefferies | Hold | Hold | Maintain | Jul 10, 2017 |
| CLSA | Underperform | Underperform | Maintain | Sep 23, 2016 |
| Sandler O'Neill | Hold | Buy | Downgrade | Sep 6, 2016 |
| Bernstein | Underperform | Market Perform | Downgrade | Jan 26, 2015 |
| Rafferty Capital | Buy | Hold | Upgrade | Sep 15, 2014 |
| Rafferty | Buy | Hold | Upgrade | Sep 15, 2014 |
| Evercore Partners | Overweight | Overweight | Maintain | Apr 28, 2014 |
| ISI Group | Buy | Buy | Maintain | Apr 19, 2013 |
| Guggenheim | Neutral | Buy | Downgrade | Feb 5, 2013 |
| Compass Point | Neutral | Neutral | Maintain | Jan 22, 2013 |
| Standpoint Research | Hold | Buy | Downgrade | Nov 7, 2012 |
| Rochdale Securities | Buy | Neutral | Upgrade | Oct 18, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $170.89. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Truist Financial | Analyst unavailable | $171 | $165.39 | +0.1% | Oct 15, 2026 |
| RBC Capital | Gerard Cassidy | $175 | $162.92 | +2.4% | Oct 15, 2026 |
| Capital One Financial | Analyst unavailable | $200 | $175.99 | +17.0% | Oct 6, 2026 |
| Truist Financial | Analyst unavailable | $190 | $176.37 | +11.2% | Oct 6, 2026 |
| Evercore ISI | Analyst unavailable | $200 | $183.98 | +17.0% | Jul 20, 2026 |
| Truist Financial | Analyst unavailable | $191 | $183.22 | +11.8% | Jul 17, 2026 |
| Morgan Stanley | Manan Gosalia | $195 | $185.66 | +14.1% | Jul 17, 2026 |
| Barclays | Analyst unavailable | $200 | $185.66 | +17.0% | Jul 17, 2026 |
| Evercore ISI | Glenn Schorr | $186 | $174.42 | +8.8% | Jul 6, 2026 |
| Goldman Sachs | Alexander Blostein | $194 | $170.18 | +13.5% | Jun 30, 2026 |
| Morgan Stanley | Analyst unavailable | $183 | $170.54 | +7.1% | Jun 29, 2026 |
| UBS | Analyst unavailable | $176 | $166.65 | +3.0% | Jun 26, 2026 |
| Wells Fargo | Analyst unavailable | $171 | $153.95 | +0.1% | May 26, 2026 |
| Argus Research | Analyst unavailable | $168 | $155.56 | -1.7% | Apr 21, 2026 |
| Seaport Global | Analyst unavailable | $170 | $149.28 | -0.5% | Apr 20, 2026 |
| Truist Financial | Analyst unavailable | $150 | $148.74 | -12.2% | Apr 20, 2026 |
| Morgan Stanley | Analyst unavailable | $166 | $149.22 | -2.9% | Apr 20, 2026 |
| Evercore ISI | Analyst unavailable | $158 | $149.21 | -7.5% | Apr 20, 2026 |
| RBC Capital | Analyst unavailable | $155 | $148.82 | -9.3% | Apr 20, 2026 |
| Goldman Sachs | Analyst unavailable | $168 | $145.43 | -1.7% | Apr 20, 2026 |
| Barclays | Analyst unavailable | $165 | $145.43 | -3.4% | Apr 20, 2026 |
| Truist Financial | Analyst unavailable | $136 | $124.7 | -20.4% | Jan 20, 2026 |
| Morgan Stanley | Analyst unavailable | $164 | $125.29 | -4.0% | Jan 20, 2026 |
| Truist Financial | Analyst unavailable | $138 | $134.32 | -19.2% | Jan 7, 2026 |
| Loop Capital Markets | Analyst unavailable | $144 | $133.01 | -15.7% | Jan 6, 2026 |
| Barclays | Jason Goldberg | $152 | $129.07 | -11.1% | Jan 5, 2026 |
| Morgan Stanley | Betsy Graseck | $168 | $127.21 | -1.7% | Dec 16, 2025 |
| Truist Financial | David Smith | $131 | $111.37 | -23.3% | Oct 20, 2025 |
| Morgan Stanley | Analyst unavailable | $165 | $111.37 | -3.4% | Oct 20, 2025 |
| Wells Fargo | Mike Mayo | $129 | $111.37 | -24.5% | Oct 20, 2025 |
| Truist Financial | David Smith | $133 | $113.38 | -22.2% | Oct 2, 2025 |
| Goldman Sachs | Analyst unavailable | $128 | $117.25 | -25.1% | Sep 30, 2025 |
| Morgan Stanley | Betsy Graseck | $162 | $115.71 | -5.2% | Sep 29, 2025 |
| Morgan Stanley | Betsy Graseck | $110 | $97.01 | -35.6% | Jun 3, 2025 |
| Truist Financial | Analyst unavailable | $85 | $80.63 | -50.3% | Apr 21, 2025 |
| Goldman Sachs | Alexander Blostein | $98 | $81.26 | -42.7% | Apr 17, 2025 |
| Truist Financial | David Smith | $104 | $97.72 | -39.1% | Jan 21, 2025 |
| Morgan Stanley | Betsy Graseck | $132 | $97.01 | -22.8% | Jan 3, 2025 |
| Evercore ISI | Glenn Schorr | $111 | $97.95 | -35.0% | Jan 2, 2025 |
| Morgan Stanley | Betsy Graseck | $139 | $98.41 | -18.7% | Dec 9, 2024 |
| Bank of America Securities | Nat Schindler | $99 | $91.82 | -42.1% | Oct 16, 2024 |
| Deutsche Bank | Brian Bedell | $90 | $91.82 | -47.3% | Oct 16, 2024 |
| Goldman Sachs | Alexander Bolstein | $106 | $91.82 | -38.0% | Oct 16, 2024 |
| Evercore ISI | Glenn Schorr | $94 | $91.82 | -45.0% | Oct 16, 2024 |
| Wells Fargo | Mike Mayo | $106 | $91.82 | -38.0% | Oct 16, 2024 |
| CFRA | Kenneth Leon | $100 | $91.82 | -41.5% | Oct 15, 2024 |
| Morgan Stanley | Betsy Graseck | $100 | $88.2 | -41.5% | Sep 30, 2024 |
| Deutsche Bank | Brian Bedell | $87 | $88.87 | -49.1% | Sep 23, 2024 |
| Citigroup | Keith Horowitz | $90 | $82.58 | -47.3% | Sep 13, 2024 |
| Evercore ISI | Glenn Schorr | $91 | $85.06 | -46.7% | Jul 17, 2024 |
| Wells Fargo | Mike Mayo | $98 | $84.82 | -42.7% | Jul 17, 2024 |
| Barclays | Jason Goldberg | $103 | $84.82 | -39.7% | Jul 17, 2024 |
| CFRA | Kenneth Leon | $90 | $84.82 | -47.3% | Jul 16, 2024 |
| Jefferies | Ken Usdin | $90 | $76.06 | -47.3% | Apr 15, 2024 |
| Goldman Sachs | Alexander Blostein | $92 | $73.91 | -46.2% | Apr 12, 2024 |
| Deutsche Bank | Brian Bedell | $75 | $75.95 | -56.1% | Apr 5, 2024 |
| CFRA | Kenneth Leon | $70 | $77 | -59.0% | Apr 2, 2024 |
| CFRA | Kenneth Leon | $78 | $72.51 | -54.4% | Mar 12, 2024 |
| RBC Capital | Gerard Cassidy | $80 | $75.04 | -53.2% | Apr 18, 2023 |
| Deutsche Bank | Analyst unavailable | $77 | $80.7 | -54.9% | Nov 15, 2022 |
| Deutsche Bank | Brian Bedell | $67 | $65.21 | -60.8% | Jun 28, 2022 |
| Piper Sandler | Jeffery Harte | $78 | $62.89 | -54.4% | Jun 24, 2022 |
| Credit Suisse | Michael Brown | $87 | $69.04 | -49.1% | Jun 8, 2022 |
| Deutsche Bank | Brian Bedell | $80 | $67.47 | -53.2% | May 22, 2022 |
| Barclays | Jason Goldberg | $115 | $70.87 | -32.7% | Apr 23, 2022 |
| Jefferies | Ken Usdin | $86 | $75.52 | -49.7% | Apr 21, 2022 |
| Citigroup | Keith Horowitz | $93 | $75.81 | -45.6% | Apr 15, 2022 |
| Deutsche Bank | Brian Bedell | $113 | $82.72 | -33.9% | Apr 11, 2022 |
| UBS | Brennan Hawken | $112 | $83.7 | -34.5% | Apr 6, 2022 |
| Piper Sandler | Jeff Harte | $103 | $98.31 | -39.7% | Jan 6, 2022 |
| Barclays | Jason Goldberg | $130 | $93.86 | -23.9% | Jan 3, 2022 |
| Citigroup | Keith Horowitz | $115 | $98.18 | -32.7% | Oct 22, 2021 |
| Wells Fargo | Mike Mayo | $92 | $85.06 | -46.2% | Oct 4, 2021 |
| KBW | Michael Brown | $103 | $80.71 | -39.7% | Jun 17, 2021 |
Track every rating change on STT the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationState Street Corporation (STT) is a well-established global financial services firm that delivers a wide array of financial products and specialized services to institutional investors worldwide. The company's extensive offerings include core investment servicing functionalities such as secure asset custody, detailed product accounting, daily valuation, comprehensive administration, master trust and master custody arrangements, and specific depotbank services. It also manages record-keeping, cash, foreign exchange, brokerage, and various trading activities. Further services in this area encompass securities finance, advanced custody solutions, deposit and short-term investment facilities, as well as loan and lease financing. State Street additionally provides operational outsourcing for both traditional and alternative investment managers, complemented by sophisticated analytics for performance, risk, and compliance, along with financial data management.…
Historical context
All STT earningsFinancial Services peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| LPLA LPL Financial Holdings Inc. | FY2026 Q3 · Calendar Q4 2026 | +5.5% | +0.1% | LPL posts record EPS as Commonwealth and Cyan remain key priorities |
| HSBC HSBC Holdings plc | FY2026 Q3 · Calendar Q4 2026 | -4.5% | -5.7% | HSBC posts solid Q3 growth as guidance stays unchanged |
| HIG-PG The Hartford Financial Services Group, Inc. | FY2026 Q3 · Calendar Q4 2026 | +10.4% | — | The Hartford posts strong Q3 as workers’ comp risks rise |
| SPGI S&P Global Inc. | FY2026 Q3 · Calendar Q4 2026 | — | -0.4% | S&P Global raises guidance as AI adoption broadens |
| PYPL PayPal Holdings, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +2.0% | PayPal raises EPS outlook as Venmo and financial services expand |
| SOFI SoFi Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +13.4% | SoFi raises 2026 outlook as growth broadens beyond lending |
Latest beats and misses
Who reports nextBeat on EPS
- HCAFY2026 Q3 · October 27, 2026+8.6% EPS-3.3% move
- GLWFY2026 Q3 · October 27, 2026+3.3% EPS-1.1% move
- STXFY2027 Q1 · October 27, 2026+3.1% EPS+3.7% move
- LPLAFY2026 Q3 · October 27, 2026+5.5% EPS+0.1% move
- RGENFY2026 Q3 · October 27, 2026+14.5% EPS-2.4% move
- NVSFY2026 Q3 · October 27, 2026+9.3% EPS+2.0% move
Missed on EPS
- XYLFY2026 Q3 · October 27, 2026-0.7% EPS-14.2% move
- HSBCFY2026 Q3 · October 27, 2026-4.5% EPS-5.7% move
- BROFY2026 Q3 · October 26, 2026-1.8% EPS-5.0% move
- PSA-PLFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-PNFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-POFY2026 Q3 · October 26, 2026-32.1% EPS— move
Get the STT recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-07-16T18:03:13.536217+00:00
- FN2 earnings calendar · 2026-07-29T01:23:15.868211+00:00
- Polygon adjusted daily market bars · 2026-07-29T22:31:33.362608+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-29T22:31:33.359984+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-07-29. For educational purposes only; not investment advice.