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 (Basic)
$9.55
++14.65% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K 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: 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: 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: Source: 10-K Income Statement & Cash Flow Statement
2 more insights available
Upgrade to unlockState 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: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.97 versus the $2.87 analyst consensus — a +3.4% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $13.94B | $13B | +7.26% |
Net Income | $2.94B | $2.69B | +9.61% |
EPS (Basic) | $9.55 | $8.33 | +14.65% |
EPS (Diluted) | $9.40 | $8.21 | +14.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $366.05B | $353.24B | +3.63% |
Total Liabilities | $338.21B | $327.91B | +3.14% |
Stockholders' Equity | $27.84B | $25.33B | +9.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $11.9B | $-13.21B | +190.07% |
Investing Cash Flow | $-12.99B | $-39.48B | +67.10% |
Financing Cash Flow | $2.38B | $51.79B | -95.40% |
Dividends Paid | $1.12B | $1.03B | +8.42% |
Share Buybacks | $1.2B | $1.32B | -9.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 21.1% | — | — |
ROE | 10.6% | — | — |
ROA | 0.8% | — | — |
Debt to Equity | $12.148 | — | — |
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State Street had a strong FY2025, with revenue growing 7.3% to $13.9B and net income rising 9.6% to $2.9B. Diluted EPS of $9.40 grew 14.5%, boosted by both earnings growth and share buybacks of $1.2B.
The standout story in STT's FY2025 10-K was the dramatic recovery in operating cash flow, which swung from -$13.2B to +$11.9B year-over-year. Combined with consistent revenue and earnings growth, the firm also returned $2.3B to shareholders through dividends and buybacks.
Key risks for State Street include its high financial leverage (debt-to-equity of ~12x), significant sensitivity to interest rate movements and market valuations that affect fee revenues, and ongoing cybersecurity and regulatory compliance risks as a globally systemically important bank.
State Street's total revenue grew 7.3% year-over-year to $13.9B in FY2025, up from $13.0B in the prior year. This growth reflects improvements in both fee-based asset servicing revenues and net interest income.
State Street appears financially healthy in FY2025, with growing revenues, a 21.1% net margin, and stockholders' equity increasing 9.9% to $27.8B. The firm's high leverage ratio of 12.1x debt-to-equity is typical for custodian banks and is managed within regulatory capital frameworks, while the strong operating cash flow recovery further supports financial stability.