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 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.
Revenue
$3.8B
+15.59% YoY
EPS (Diluted)
$2.49
+22.06% YoY
Source: SEC XBRL
State Street (STT) reported Q1 FY2026 revenue of $3.8B, up 15.6% year over year. Operating cash flow was negative $12.14B. STT's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.65 | 3.36 | Beat +8.5% |
| Mar 2026This filing | 2.84 | 2.64 | Beat +7.8% |
| Dec 2025 | 2.97 | 2.87 | Beat +3.4% |
| Sep 2000 | 0.46 | 0.46 | Miss -1.2% |
Adjusted (non-GAAP) EPS of $2.84 versus the $2.64 analyst consensus — a +7.8% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.49.
Compiled by AI from this SEC filing
Total revenue grew 15.6% YoY to $3.80B in Q1 FY2026 (vs. $3.28B in Q1 FY2025), reflecting broad-based strength across State Street's fee-based and net interest income businesses, consistent with rising assets under custody and favorable market levels.
Source: 10-Q Income Statement
Net income increased 18.6% YoY to $764M, with net margin expanding to approximately 20.1%, indicating that revenue growth outpaced expense growth and drove meaningful operating leverage during the quarter.
Source: 10-Q Income Statement
Basic EPS rose 22.2% YoY to $2.53 and diluted EPS rose 22.1% to $2.49, outpacing net income growth of 18.6%, suggesting share count reduction from the $400M in share buybacks (up 300% YoY) contributed to per-share earnings improvement.
Source: 10-Q Income Statement & Cash Flow Statement
Total assets grew 5.2% YoY to $392.2B, funded by a commensurate 5.3% increase in total liabilities to $364.4B, reflecting State Street's role as a global custodian bank where client deposits and short-term borrowings naturally drive balance sheet size.
Source: 10-Q Balance Sheet
Operating cash flow turned sharply negative at -$12.14B vs. +$2.40B in Q1 FY2025, a -606.8% swing, which for a custodian bank typically reflects large movements in client deposits, securities lending collateral, or short-term funding instruments rather than deterioration in core earnings quality.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
State Street's debt-to-equity ratio stands at approximately 13.1x, reflecting the inherent leverage of a large custodian bank funded primarily by client deposits and wholesale borrowings. While normal for the industry, this level of leverage amplifies the impact of credit losses, liquidity stress, or sudden deposit outflows on stockholders' equity.
Source: 10-Q Balance Sheet
Operating cash flow swung to -$12.14B in Q1 FY2026 from +$2.40B in Q1 FY2025, a dramatic reversal. For a custodian bank, this can reflect large client-driven balance sheet movements, but sustained negative operating cash flow could signal funding pressures or working capital stress if not explained by transient client activity.
Source: 10-Q Cash Flow Statement
ROA of approximately 0.19% reflects the capital-intensive, low-margin nature of custody banking where enormous asset bases generate relatively modest net income. Any compression in fee rates or net interest margin could disproportionately reduce profitability given the thin absolute return on the $392B asset base.
Source: 10-Q Balance Sheet & Income Statement
As a major custodian bank, State Street's net interest income is sensitive to changes in short-term interest rates. A reversal in the rate environment or a flattening yield curve could pressure net interest margin, which has likely been a tailwind in recent periods supporting the 15.6% revenue growth.
Source: 10-Q Income Statement
State Street increased share buybacks 300% YoY to $400M and raised dividends 10.2% YoY to $293M, returning $693M to shareholders in Q1 FY2026. With operating cash flow deeply negative this quarter, capital returns were effectively funded by financing activities ($18.6B inflow), raising questions about the sustainability of this pace if balance sheet conditions tighten.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.80 $B | 3.28 $B | +15.59% |
Net Income $M | 764.00 $M | 644.00 $M | +18.63% |
EPS (Basic) $ | 2.53 $ | 2.07 $ | +22.22% |
EPS (Diluted) $ | 2.49 $ | 2.04 $ | +22.06% |
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 (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.
Other companies in Asset Management & Custody Banks