Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
State Street Corporation (STT) delivered solid FY2025 results with revenue growing 7.3% to $13.9B and net income rising 9.6% to $2.9B, while operating cash flow swung dramatically positive to $11.9B from a prior-year outflow.
Revenue
$13.94B
+7.26% YoY
EPS (Diluted)
$9.40
+14.49% YoY
Source: SEC XBRL
State Street (STT) reported FY2025 revenue of $13.94B, up 7.3% year over year. Operating cash flow was $11.9B.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.65 | 3.36 | Beat +8.5% |
| Mar 2026 | 2.84 | 2.64 | Beat +7.8% |
| Dec 2025This filing | 2.97 | 2.87 | Beat +3.4% |
| Sep 2000 | 0.46 | 0.46 | Miss -1.2% |
Reported EPS of $2.97 versus the $2.87 analyst consensus — a +3.4% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue increased 7.3% year-over-year to $13.9B in FY2025, up from $13.0B in the prior year, reflecting broad-based growth across State Street's fee-based and net interest income businesses.
Source: 10-K Income Statement
Net income rose 9.6% to $2.9B, with net margin expanding to approximately 21.1%, indicating improved operating leverage and cost discipline relative to revenue growth.
Source: 10-K Income Statement
Basic EPS grew 14.6% to $9.55 and diluted EPS grew 14.5% to $9.40, outpacing net income growth of 9.6%, suggesting meaningful share count reduction through the $1.2B buyback program.
Source: 10-K Income Statement & Cash Flow Statement
Operating cash flow swung from a -$13.2B outflow in the prior year to a +$11.9B inflow in FY2025, a $25.1B improvement, likely reflecting significant changes in trading assets/liabilities and working capital management typical for a custodian bank.
Source: 10-K Cash Flow Statement
State Street returned approximately $2.3B to shareholders in FY2025 through $1.2B in share repurchases and $1.1B in dividends, with dividends paid growing 8.4% year-over-year, underscoring management's commitment to capital returns.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
State Street carries a debt-to-equity ratio of approximately 12.1x, which is characteristic of large custodian banks but leaves the firm sensitive to credit market disruptions and rising funding costs. Total liabilities of $338.2B dwarf stockholders' equity of $27.8B, meaning even modest asset quality deterioration could materially impact capital ratios. Regulatory capital requirements add further constraints on balance sheet flexibility.
Source: 10-K Balance Sheet
As a major custodian and asset servicing bank, State Street's net interest income is highly sensitive to changes in interest rates, particularly the shape of the yield curve. A flattening or inverting yield curve could compress net interest margins and reduce a key revenue driver. The significant swing in operating cash flows year-over-year also highlights the volatility embedded in the firm's interest-rate-sensitive balance sheet.
Source: 10-K Cash Flow Statement & Balance Sheet
A substantial portion of State Street's revenue is derived from asset servicing and management fees, which are directly tied to assets under custody and management (AUC/AUM). A significant decline in global equity or fixed income markets would reduce fee-based revenues without a proportional reduction in operating costs. This creates meaningful earnings sensitivity to market cycles.
Source: 10-K Income Statement
As a systemically important financial institution processing trillions of dollars in transactions daily, State Street faces significant operational and cybersecurity risks. A major technology failure or data breach could result in regulatory penalties, client attrition, and reputational damage. The firm's role as a critical financial market infrastructure amplifies the potential systemic impact of any operational disruption.
Source: 10-K (General Business Risk Assessment)
State Street is subject to stringent capital requirements under Basel III/IV frameworks and ongoing regulatory scrutiny as a globally systemically important bank (G-SIB). Changes in capital rules, stress testing requirements, or resolution planning obligations could require the firm to hold additional capital, limiting shareholder returns. Compliance costs also represent a meaningful and growing component of operating expenses.
Source: 10-K (Regulatory Environment)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 13.94 $B | 13.00 $B | +7.26% |
Net Income $B | 2.95 $B | 2.69 $B | +9.61% |
EPS (Basic) $ | 9.55 $ | 8.33 $ | +14.65% |
EPS (Diluted) $ | 9.40 $ | 8.21 $ | +14.49% |
Answers draw on this SEC filing and the data on this page
State Street Corporation reported strong Q2 FY2026 financial performance, with total revenue rising 17.4% to $4.05B and net income jumping 56.4% to $1.08B, supported by record levels in assets under custody and administration.
State Street Corporation delivered strong Q1 FY2026 results with revenue rising 15.6% YoY to $3.80B and net income up 18.6% to $764M, though operating cash flow swung sharply negative at -$12.14B primarily due to balance sheet dynamics typical of large custodian banks.
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