State Street (NYSE:STT) Issues Earnings Results, Beats Estimates By $0.15 EPS

State Street (NYSE:STT) issued its earnings results on Friday. The asset manager reported $2.97 earnings per share for the quarter, topping the consensus estimate of $2.82 by $0.15, Zacks reports. The firm had revenue of $3.67 billion for the quarter, compared to analyst estimates of $3.57 billion. State Street had a return on equity of 13.37% and a net margin of 13.14%.The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same period last year, the company earned $2.60 earnings per share.

Here are the key takeaways from State Street’s conference call:

• State Street closed 2025 with record fee and total revenue, delivering Q4 EPS growth of 14% year-over-year (ex-notable items) and full-year EPS of $10.30 (+19%), with pre-tax margin near 31% ex-notables and eight consecutive quarters of positive operating leverage.
• Client balances drove scale — AUCA reached a record $53.8 trillion and AUM hit an all-time high of $5.7 trillion, supporting record management fee revenue (+15% Q4) and double‑digit growth in private markets servicing fees (+12%).
• Strategic expansion accelerated as management launched a digital asset platform for tokenization, made a minority investment in Apex to grow wealth services, and introduced 134 new investment products in 2025 to pursue faster‑growing market segments.
• The operational transformation is delivering results — State Street achieved $500 million of productivity savings in 2025, expects comparable savings in 2026, plans to embed AI broadly, and guides to >100 bps of operating leverage and roughly a 30% full‑year pre‑tax margin in 2026.
• Short‑term headwinds and uncertainties include a 15% decline in software & processing fees (driven by lower on‑prem renewals), $206 million of Q4 pre‑tax notable items, and a conservative 2026 outlook that assumes flat markets with only 4–6% fee growth and low‑single‑digit NII upside.

State Street Stock Down 6.1%

Shares of STT stock opened at $128.00 on Friday. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.59 and a current ratio of 0.59. The stock has a market cap of $35.75 billion, a PE ratio of 13.54, a price-to-earnings-growth ratio of 0.91 and a beta of 1.43. The business’s fifty day moving average is $125.27 and its 200-day moving average is $117.13. State Street has a 1 year low of $72.81 and a 1 year high of $137.05.

State Street Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, January 12th. Stockholders of record on Friday, January 2nd were given a dividend of $0.84 per share. The ex-dividend date was Friday, January 2nd. This represents a $3.36 annualized dividend and a dividend yield of 2.6%. State Street’s dividend payout ratio (DPR) is 35.56%.

Insiders Place Their Bets

In related news, EVP Michael L. Richards sold 1,500 shares of State Street stock in a transaction dated Monday, October 27th. The stock was sold at an average price of $117.24, for a total transaction of $175,860.00. Following the transaction, the executive vice president directly owned 38,626 shares of the company’s stock, valued at $4,528,512.24. The trade was a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.29% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On State Street

Several hedge funds have recently made changes to their positions in STT. AQR Capital Management LLC lifted its stake in State Street by 56.9% during the third quarter. AQR Capital Management LLC now owns 1,283,435 shares of the asset manager’s stock valued at $148,891,000 after purchasing an additional 465,401 shares during the last quarter. Two Sigma Investments LP increased its holdings in shares of State Street by 261.0% in the third quarter. Two Sigma Investments LP now owns 1,217,802 shares of the asset manager’s stock valued at $141,277,000 after buying an additional 880,507 shares in the last quarter. Amundi lifted its position in shares of State Street by 11.2% during the 3rd quarter. Amundi now owns 1,161,798 shares of the asset manager’s stock valued at $135,814,000 after acquiring an additional 116,991 shares during the last quarter. Qube Research & Technologies Ltd boosted its stake in shares of State Street by 157.5% during the 3rd quarter. Qube Research & Technologies Ltd now owns 863,666 shares of the asset manager’s stock worth $100,194,000 after acquiring an additional 528,246 shares in the last quarter. Finally, Freestone Grove Partners LP grew its holdings in shares of State Street by 271.5% in the 3rd quarter. Freestone Grove Partners LP now owns 645,661 shares of the asset manager’s stock worth $74,903,000 after acquiring an additional 471,864 shares during the last quarter. Institutional investors and hedge funds own 87.44% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on STT shares. Citigroup increased their price objective on shares of State Street from $136.00 to $150.00 and gave the stock a “buy” rating in a report on Tuesday, December 30th. Wall Street Zen upgraded shares of State Street from a “sell” rating to a “hold” rating in a research note on Saturday. Cowen reaffirmed a “buy” rating on shares of State Street in a report on Wednesday, January 7th. Truist Financial reiterated a “hold” rating and set a $138.00 price objective (up from $131.00) on shares of State Street in a research report on Wednesday, January 7th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of State Street in a research report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $133.77.

Key State Street News

Here are the key news stories impacting State Street this week:

• Positive Sentiment: Q4 revenue and core results beat estimates — State Street reported stronger-than-expected revenue and NII-driven fee growth, with EPS above consensus on the company release and analyst notes, supporting the firm’s top-line momentum. State Street Q4 Earnings Beat
• Positive Sentiment: Record assets under management/custody — State Street finished 2025 with record AUC/A and AUM (reported ~$5.7T), which underpins fee revenue stability and product distribution. SPDR Issuer State Street Ends 2025 With Record $5.7 Trillion AUM
• Positive Sentiment: Strategic expansion into digital assets — State Street launched a Digital Asset / tokenization platform to support tokenized MMFs, ETFs and custody services, which could drive new fee streams over time. State Street Launches Digital Asset Platform
• Neutral Sentiment: Company presentation and analyst commentary — Management hosted the scheduled earnings call and released slides; several analysts reiterated positive ratings and elevated price targets, but noted much of the good news was already priced in. Q4 Presentation / Slides
• Negative Sentiment: Rising expenses and restructuring charges weighed on profit — Multiple outlets highlighted a meaningful jump in expenses and restructuring costs that reduced Q4 profit and prompted a higher expense outlook for 2026; that guidance and cost uncertainty drove the selloff. State Street’s fourth-quarter profit falls as expenses weigh
• Negative Sentiment: Investor caution on cost trajectory — Market coverage flagged that, despite a paper beat, elevated operating costs and restructuring guidance raise questions about margin recovery and near-term profitability. State Street Drops After Q4 Results

State Street Company Profile

State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.

State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.