$STT · STATE STREET CORP
State Street Corporation filed its 10-Q for the quarter ended September 30, 2026, reporting net income of $1.09B ($3.69 diluted EPS), up 27% from $861M ($2.78) in Q3 2025. Total revenue grew 12.9% to $4.004B, with fee revenue of $3.14B (+11%) and net interest income of $864M (+21%). Net interest margin on a fully taxable-equivalent basis expanded 16 bps to 1.12%. Pre-tax margin reached 34.6% and return on average common equity was 16.4%.
- Diluted EPS of $3.69, up 33% YoY from $2.78 in Q3 2025.
- Total revenue reached $4.004B, +12.9% YoY, driven by fee revenue of $3.14B (+11%) and NII of $864M (+21%).
- Net interest margin (FTE) expanded to 1.12% from 0.96% a year ago, a 16 bps improvement.
- Pre-tax margin widened to 34.6% from 31.1%, a 350 bps expansion.
- Return on average common equity hit 16.4%, up 300 bps from 13.4% in Q3 2025.
Extended-hours trading shows STT flat at $173.54, essentially unchanged from the regular close. The strong beat on both revenue and earnings has not yet triggered a visible after-hours move.
State Street's 27% net income jump and 350 bps pre-tax margin expansion signal operating leverage at scale — rare among large custody banks in the current cycle.
State Street's NIM expansion and fee revenue growth outpace typical custody-bank peers, reflecting effective balance-sheet management in a favorable rate environment. AUC/A of $59.17T and AUM of $6.31T underscore its scale as a global servicing leader.
Interest rate sensitivity remains elevated — NIM expansion depends on sustained rate environment; a reversal could compress NII. Trading VaR averaged $9.7M with stressed VaR at $47.2M, reflecting material market risk in the trading book.