Earnings and revenue surpass Wall Street expectations
Northern Trust Corporation (NASDAQ:NTRS) reported second-quarter 2026 results that comfortably exceeded analyst forecasts, supported by higher fee income and a significant gain related to its participation in Visa’s exchange offer.
The company posted adjusted earnings per share of $4.23, well above the consensus estimate of $2.70. Revenue rose to $2.71 billion, surpassing analysts’ expectations of $2.17 billion.
Following the earnings release, Northern Trust shares gained 0.38% in premarket trading.
Visa transaction boosts quarterly profit
Results for the quarter included after-tax notable items totaling $342.0 million.
The largest contribution came from a $396.4 million after-tax gain generated through Northern Trust’s participation in the second Visa, Inc. Exchange Offer.
That benefit was partly offset by a $54.4 million after-tax loss on the sale of debt securities, as well as $109.9 million in after-tax charges related to software dispositions, severance costs and a one-time equity award.
Overall revenue increased 35% from the second quarter of 2025, when the company generated $2.00 billion.
Fee income and net interest income continue to grow
Trust, investment and other servicing fees climbed 10% year over year to $1.35 billion, supported by favourable market conditions and continued new business wins.
Net interest income, calculated on a fully taxable equivalent basis, increased 11% to $683.1 million as lower funding costs helped improve profitability.
Assets under custody and administration expanded 11% from a year earlier to reach $20.0 trillion.
“Northern Trust delivered another quarter of strong performance reflecting disciplined execution of our One Northern Trust strategy amid a constructive operating environment,” said Michael O’Grady, Chairman and Chief Executive Officer. “Excluding notable items in the period, earnings per share increased 40%.”
Credit quality improves despite higher operating costs
Noninterest expense rose 16% year over year to $1.64 billion, including $145.6 million of notable charges recorded during the quarter.
The company also reported a negative provision for credit losses of $5.3 million, compared with a provision of $16.5 million in the same period last year, reflecting stronger overall credit quality.