Bank of New York Mellon (NYSE:BNY) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Bank of New York Mellon (NYSE:BNY) announced its quarterly earnings results on Thursday. The bank reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.26 by $0.11, FiscalAI reports. Bank of New York Mellon had a return on equity of 16.57% and a net margin of 16.32%. The company had revenue of $5.68 billion for the quarter. The business’s revenue was up 11.7% on a year-over-year basis.

Here are the key takeaways from Bank of New York Mellon’s conference call:

• Strong third-quarter results included revenue of $5.7 billion, up 12% year over year, EPS of $2.34, up 24%, a 39% pre-tax margin, and 29% return on tangible common equity. BNY generated approximately 390 basis points of positive operating leverage.
• BNY raised its 2026 outlook, now expecting nearly 500 basis points of positive operating leverage, revenue growth around the middle of a 12%-13% range, and net interest income growth of approximately 15%. The company also expects expense growth in the middle of a 7%-8% range due partly to higher revenue-related costs.
• Client momentum remained broad-based, with the 15th consecutive quarter of year-over-year sales growth. Securities Services revenue rose 15%, Market and Wealth Services revenue increased 12%, and Wealth Solutions generated $48 billion of net new assets, a 7% annualized growth rate.
• BNY is investing heavily in AI, with more than 400 AI solutions in production and its enterprise platform, Eliza, focused on generating employee capacity, improving products, and creating new client offerings. Management said AI is already producing returns and expects to invest further, but it is not separately quantifying AI-related spending or financial benefits.
• Capital ratios declined during the quarter as BNY returned approximately $1.4 billion to common shareholders, including buybacks and dividends; the CET1 ratio fell to 10.9% and the Tier 1 leverage ratio to 5.7%. Management said both remain within its target range and that capital returns should continue under its existing framework.

Bank of New York Mellon Stock Up 0.8%

NYSE:BNY traded up $1.16 during mid-day trading on Friday, hitting $143.25. 6,080,091 shares of the company’s stock were exchanged, compared to its average volume of 4,283,916. The company has a market cap of $97.20 billion, a PE ratio of 15.83, a P/E/G ratio of 1.10 and a beta of 1.06. The company has a debt-to-equity ratio of 0.86, a current ratio of 0.72 and a quick ratio of 0.72. Bank of New York Mellon has a one year low of $103.11 and a one year high of $165.84. The business has a fifty day moving average price of $154.70 and a 200 day moving average price of $146.36.

Insider Buying and Selling

In other Bank of New York Mellon news, CFO Dermot Mcdonogh sold 31,800 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $155.26, for a total transaction of $4,937,268.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Jose Minaya sold 3,520 shares of Bank of New York Mellon stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $148.79, for a total transaction of $523,740.80. Following the transaction, the vice president owned 176,824 shares of the company’s stock, valued at $26,309,642.96. The trade was a 1.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 38,840 shares of company stock valued at $6,033,502 in the last ninety days. Insiders own 0.17% of the company’s stock.

Institutional Investors Weigh In On Bank of New York Mellon

A number of institutional investors have recently modified their holdings of BNY. McGlone Suttner Wealth Management Inc. lifted its position in Bank of New York Mellon by 0.8% during the third quarter. McGlone Suttner Wealth Management Inc. now owns 10,071 shares of the bank’s stock valued at $1,457,000 after purchasing an additional 77 shares during the period. Cornerstone Financial Management LLC lifted its holdings in shares of Bank of New York Mellon by 11.4% during the 2nd quarter. Cornerstone Financial Management LLC now owns 784 shares of the bank’s stock valued at $113,000 after buying an additional 80 shares during the period. Riversedge Advisors LLC lifted its holdings in shares of Bank of New York Mellon by 3.1% during the 3rd quarter. Riversedge Advisors LLC now owns 3,035 shares of the bank’s stock valued at $439,000 after buying an additional 92 shares during the period. Eastern Bank lifted its holdings in shares of Bank of New York Mellon by 12.4% during the 3rd quarter. Eastern Bank now owns 1,043 shares of the bank’s stock valued at $151,000 after buying an additional 115 shares during the period. Finally, Rockland Trust Co. boosted its stake in shares of Bank of New York Mellon by 7.6% in the 3rd quarter. Rockland Trust Co. now owns 2,542 shares of the bank’s stock worth $368,000 after buying an additional 180 shares during the last quarter. 85.31% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have commented on BNY. New Street Research set a $182.00 price objective on shares of Bank of New York Mellon in a report on Friday. Truist Financial reduced their target price on Bank of New York Mellon from $172.00 to $165.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings lowered Bank of New York Mellon from a “buy (a)” rating to a “buy (a-)” rating in a research report on Thursday, August 13th. Erste Group Bank started coverage on Bank of New York Mellon in a research note on Wednesday, July 15th. They issued a “buy” rating for the company. Finally, Keefe, Bruyette & Woods restated an “outperform” rating on shares of Bank of New York Mellon in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Bank of New York Mellon has a consensus rating of “Moderate Buy” and an average target price of $164.85.

Key Bank of New York Mellon News

Here are the key news stories impacting Bank of New York Mellon this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. BNY reported quarterly earnings of approximately $2.37 per share, above the $2.26 analyst consensus, while revenue reached $5.68 billion, up 11.7% year over year. Net income and EPS rose sharply, supported by higher fee revenue, net interest income and expanding asset balances. BNY Q3 Earnings Beat Estimates on Fee Income and NII Growth
• Positive Sentiment: Management raised its outlook. BNY increased its 2026 revenue-growth and operating-leverage expectations, citing strong operating momentum, adoption of artificial intelligence and growth across securities services. Assets under custody and administration reportedly reached $63.4 trillion, reinforcing the company’s scale advantage. BNY Q3 Earnings Call Highlights Raised Outlook and AI Push
• Positive Sentiment: Shareholder returns and strategic initiatives support sentiment. BNY declared a $0.63 quarterly common-stock dividend, and the company announced the VeriCORE initiative with SFA and Snapdocs to modernize asset-backed-securities market infrastructure. BNY Declares Dividends
• Neutral Sentiment: Truist remains bullish but reduced its price target. Truist maintained a “buy” rating while lowering its target from $172 to $165, suggesting continued upside but also a more cautious valuation outlook.
• Neutral Sentiment: CEO Robin Vince said a potential 5.25% 10-year Treasury yield would not be historically unusual. The comments may ease concerns about interest-rate conditions, but they do not materially change BNY’s earnings outlook. US 10-year Treasury Yield Levels Not Unprecedented
• Negative Sentiment: Expenses and AI investment remain risks. Although AI is being embedded throughout the business, BNY has not disclosed the associated costs. Rising expenses could limit the benefit of revenue growth and operating leverage. While Embedding AI Everywhere, BNY Won’t Disclose Costs

About Bank of New York Mellon

BNY, formerly known as BNY Mellon, is a global financial services company headquartered in New York City. Formed in 2007 through the merger of the Bank of New York and Mellon Financial Corporation, BNY traces its roots back to 1784, making it one of the oldest banking institutions in the United States. It was also the first company listed on the New York Stock Exchange.

BNY operates at the center of the world’s capital markets, partnering with clients to help them operate more efficiently and accelerate growth.