Northern Trust (NASDAQ:NTRS) Announces Quarterly Earnings Results

Northern Trust (NASDAQ:NTRS) issued its quarterly earnings data on Thursday. The asset manager reported $2.69 earnings per share for the quarter, topping analysts’ consensus estimates of $2.37 by $0.32, Zacks reports. Northern Trust had a return on equity of 14.37% and a net margin of 11.99%.The firm had revenue of $2.14 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same period last year, the company earned $2.26 EPS. The business’s quarterly revenue was up 8.4% compared to the same quarter last year.

Here are the key takeaways from Northern Trust’s conference call:

• Northern reported strong core results—excluding notables Q4 revenue rose ~9%, pre-tax margin expanded to ~33%, EPS grew ~19% year-over-year, and the firm returned $1.9 billion to shareholders in 2025 including a record $1.3 billion of buybacks (shares down ~5%).
• Management raised medium-term targets, now targeting a 33% pre-tax margin, return on equity in the mid-teens, and expense-to-trust-fee below 110%, signaling higher confidence in sustaining improved profitability.
• Productivity and AI initiatives are driving efficiency—2025 productivity savings exceeded 4% of expenses, managerial spans increased and layers were reduced, and the company plans to lift its productivity target for 2026 (broader AI deployment via its NT Byron platform).
• Business momentum is broad-based—Wealth (Global Family Office and new Family Office Solutions) recorded record wins and flows, Asset Servicing saw strong capital markets and private markets revenue, and NTAM posted 12 consecutive quarters of positive liquidity flows and elevated product launches.
• There are near-term headwinds and risks—Q4 included $69 million of net unfavorable notables (severance and Visa swap items), guidance assumes only low- to mid-single-digit NII growth for 2026, and management warns market moves, rate volatility, or operational shocks could materially affect results.

Northern Trust Stock Performance

Shares of NASDAQ NTRS opened at $153.12 on Friday. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.58. The firm has a market capitalization of $28.96 billion, a price-to-earnings ratio of 17.85, a price-to-earnings-growth ratio of 1.20 and a beta of 1.27. Northern Trust has a 12-month low of $81.62 and a 12-month high of $157.60. The firm has a 50 day moving average of $137.44 and a 200 day moving average of $131.69.

Northern Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 6th will be issued a $0.80 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.1%. Northern Trust’s dividend payout ratio (DPR) is presently 37.30%.

Northern Trust News Summary

Here are the key news stories impacting Northern Trust this week:

• Positive Sentiment: Management flagged record net interest income and raised targets on the Q4 earnings call — NII was a clear driver of the beat and management signaled improved revenue momentum. Northern Trust Earnings Call: Record NII, Higher Targets
• Positive Sentiment: Q4 results topped estimates on both EPS and revenue, helped by higher NII, rising trust/servicing fees and growth in assets under custody/management — supporting better margins and top‑line momentum. NTRS Q4 Earnings Beat on Y/Y NII & AUM Growth Despite High Costs
• Positive Sentiment: Northern Trust declared a quarterly dividend ($0.80) with an approximate 2.1% yield, which supports income‑oriented investor interest. (Company release / investor materials)
• Neutral Sentiment: The full earnings call transcript and slide deck are available for review — useful for digging into guidance detail, client flows and margin assumptions. Northern Trust Corporation (NTRS) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company press release and official 8‑K/slide deck posted (detailed financials, AUC/AUM breakout and supplemental tables). Northern Trust Corporation Reports Fourth Quarter 2025 Financial Results
• Negative Sentiment: Operating expenses were elevated in the quarter and remain a drag on margin improvement — costs could limit earnings leverage if they persist. NTRS Q4 Earnings Beat on Y/Y NII & AUM Growth Despite High Costs
• Negative Sentiment: Some analysts/commentary flagged that the stock’s valuation looks stretched after the post‑quarter move (relative to fundamentals and peers), which could cap upside near current levels (P/E and proximity to the 52‑week high are relevant). Northern Trust: Solid Q4, But Valuation Is Too Elevated

Insider Buying and Selling

In other Northern Trust news, insider John Landers sold 766 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $124.35, for a total value of $95,252.10. Following the completion of the transaction, the insider directly owned 7,313 shares in the company, valued at $909,371.55. This represents a 9.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Susan Cohen Levy sold 27,591 shares of the firm’s stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $128.13, for a total transaction of $3,535,234.83. Following the transaction, the executive vice president directly owned 48,257 shares of the company’s stock, valued at $6,183,169.41. The trade was a 36.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.77% of the stock is currently owned by company insiders.

Institutional Trading of Northern Trust

Several institutional investors have recently added to or reduced their stakes in NTRS. CIBC Bancorp USA Inc. purchased a new stake in shares of Northern Trust in the third quarter worth approximately $3,567,000. Sunbelt Securities Inc. lifted its position in shares of Northern Trust by 99.7% during the third quarter. Sunbelt Securities Inc. now owns 1,442 shares of the asset manager’s stock worth $194,000 after purchasing an additional 720 shares during the last quarter. Captrust Financial Advisors grew its holdings in shares of Northern Trust by 4.9% in the third quarter. Captrust Financial Advisors now owns 13,519 shares of the asset manager’s stock worth $1,820,000 after purchasing an additional 633 shares during the last quarter. Coldstream Capital Management Inc. increased its stake in Northern Trust by 10.8% in the 3rd quarter. Coldstream Capital Management Inc. now owns 5,631 shares of the asset manager’s stock worth $758,000 after buying an additional 551 shares during the period. Finally, Danske Bank A S bought a new stake in Northern Trust during the 3rd quarter valued at about $17,058,000. Institutional investors own 83.19% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on NTRS. The Goldman Sachs Group reaffirmed a “sell” rating and set a $130.00 target price on shares of Northern Trust in a research note on Tuesday, January 6th. Truist Financial set a $148.00 price objective on Northern Trust in a report on Wednesday, January 7th. Morgan Stanley raised their price objective on Northern Trust from $127.00 to $131.00 and gave the company an “underweight” rating in a research report on Wednesday, December 17th. Wall Street Zen raised shares of Northern Trust from a “sell” rating to a “hold” rating in a research report on Saturday, December 27th. Finally, Barclays lifted their target price on shares of Northern Trust from $136.00 to $160.00 and gave the company an “equal weight” rating in a report on Monday, January 5th. Four research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $136.00.

About Northern Trust

Northern Trust Corporation (NASDAQ: NTRS) is a global financial services firm headquartered in Chicago that provides asset servicing, asset management and wealth management solutions to institutions, corporations and high-net-worth individuals. The company’s core businesses include custody and fund administration, investment operations outsourcing, trust and fiduciary services, private banking, and retirement and defined contribution plan services.

Northern Trust’s product and service offerings span custody and fund accounting, portfolio and performance analytics, securities lending, cash management and foreign exchange, as well as discretionary and non-discretionary investment management.