AI Takeaway
Northern Trust (NTRS) delivered strong Q1 FY2026 results with revenue up 10.5% YoY to $1.34B and net income surging 34.1% to $525.5M, though operating cash flow turned sharply negative at -$320M.
Revenue
$1.34B
++10.51% YoY
EPS (Basic)
$2.72
++42.41% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 10.5% year-over-year from $1.21B to $1.34B in Q1 FY2026, reflecting broad-based strength across Northern Trust's wealth management and asset servicing businesses.
Source: Source: 10-Q Financial Data, Income Statement
Net income jumped 34.1% YoY to $525.5M, with net margin expanding to approximately 39.2%, indicating meaningful operating leverage and improved profitability relative to revenue growth.
Source: Source: 10-Q Financial Data, Income Statement
Basic EPS rose 42.4% YoY to $2.72 (diluted: $2.71), outpacing net income growth and suggesting share buybacks contributed to per-share earnings improvement alongside organic profit growth.
Source: Source: 10-Q Financial Data, Income Statement
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Upgrade to unlockOperating cash flow swung from +$2.75B to -$320M YoY, a decline of over 111%. While this may reflect timing differences in custodial bank operations, sustained negative operating cash flow could pressure liquidity and capital allocation flexibility.
Source: Source: 10-Q Financial Data, Cash Flow Statement
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Upgrade to unlockReported EPS of $2.71 versus the $2.37 analyst consensus — a +14.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.34B | $1.21B | +10.51% |
Net Income | $525.5M | $392M | +34.06% |
EPS (Basic) | $2.72 | $1.91 | +42.41% |
EPS (Diluted) | $2.71 | $1.90 | +42.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $174.57B | $165.07B | +5.76% |
Total Liabilities | $161.59B | $152.19B | +6.17% |
Stockholders' Equity | $12.99B | $12.88B | +0.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-320M | $2.75B | -111.64% |
Investing Cash Flow | $3.49B | $-10.29B | +133.89% |
Financing Cash Flow | $-3.12B | $6.82B | -145.76% |
Share Buybacks | $358.9M | $287.2M | +24.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 39.2% | — | — |
ROE | 4.0% | — | — |
ROA | 0.3% | — | — |
Debt to Equity | $12.442 | — | — |
Other companies in Asset Management & Custody Banks
Northern Trust delivered strong Q1 FY2026 results with revenue of $1.34B (up 10.5% YoY) and net income of $525.5M (up 34.1% YoY). Basic EPS came in at $2.72, a 42.4% increase from $1.91 in the prior year period.
Operating cash flow swung from +$2.75B in Q1 FY2025 to -$320M in Q1 FY2026, a reversal of over $3B. For custodial banks like Northern Trust, such swings can reflect timing differences in securities settlements, client cash movements, or working capital changes, though the magnitude warrants monitoring in future quarters.
Northern Trust's balance sheet grew to $174.6B in total assets with stockholders' equity of $13.0B, and the company maintains a strong net margin of ~39.2%. However, the high debt-to-equity ratio of 12.4x and negative operating cash flow in Q1 FY2026 are factors investors should watch closely.
Yes, Northern Trust repurchased $358.9M in shares during Q1 FY2026, up 25% from $287.2M in the prior year period. These buybacks contributed to the 42.4% YoY increase in basic EPS, which outpaced the 34.1% growth in net income.
Key risks include the sharp reversal in operating cash flow to -$320M, a high debt-to-equity ratio of 12.4x reflecting significant financial leverage, and the modest equity growth of only 0.8% against 5.8% asset expansion. Continued share buybacks amid negative operating cash flow also raises questions about capital allocation sustainability.