State Street Corporation (NYSE:STT) reported first-quarter results on Friday that exceeded analyst expectations, supported by record revenue across its business segments.
The company’s shares gained 2.18% in premarket trading following the announcement.
The financial services group posted adjusted earnings per share of $2.84, beating the consensus estimate of $2.62 by $0.22. GAAP earnings per share came in at $2.49.
Revenue reached an all-time high of $3.8 billion, up 16% year-on-year from $3.3 billion in the first quarter of 2025, and ahead of market expectations.
Growth was driven by record quarterly fee income of $3.0 billion, which increased 15% year-on-year, along with net interest income of $835 million, up 17%. The net interest margin also improved by 16 basis points to 1.16%.
“Our focus on being an essential partner to clients, supported by operational excellence and a diversified business model, enabled us to deliver a strong start to 2026 with growth underpinned by continued financial and strategic progress in the first quarter,” said Ron O’Hanley, Chairman and Chief Executive Officer.
Total expenses rose 15% year-on-year to $2.8 billion, including $130 million in notable items largely linked to repositioning efforts and client-related adjustments. Excluding these items, expenses increased 9%, reflecting higher revenue-related costs and ongoing investment.
State Street reported total operating leverage of 616 basis points excluding notable items, with a pre-tax margin of 29.0% on that basis, compared with 25.5% on a GAAP basis.
Assets under custody and administration increased 17% year-on-year to $54.5 trillion, while assets under management rose 20% to $5.6 trillion, supported by favorable market conditions and net inflows.
During the quarter, the company returned $633 million to shareholders, including $400 million in share buybacks and $233 million in dividends.