State Street Corporation

Q2 FY26Capital Markets

State Street Corporation Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹158

Market cap₹43.6K Cr

P/E16.1

Published29 May 2026

What the Q2 FY26 call signalled

2 of 4 strong

RevenueRank 3

MarginRank 3

CapexYes

Order bookYes

Not discussed on this call: fundraise.

The short version

- Fee revenue growth is expected in the 7% to 9% range for 2026, up from the previous 4% to 6% outlook, driven by strong Q1 performance and continued organic growth. - Expecting continued strong earnings growth, with Q1 marking the ninth consecutive quarter of year-over-year positive operating leverage (excluding notable items).

From State Street Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 3

Fee revenue growth is expected in the 7% to 9% range for 2026, up from the previous 4% to 6% outlook, driven by strong Q1 performance and continued organic growth.
Software Services shows momentum with 7% YoY revenue growth, 12% growth in annual recurring revenue, and 11% increase in revenue backlog.
FX trading volumes reached record levels, supporting a 29% YoY increase in FX trading revenue.
Net interest income growth is projected at 8% to 10%, improved from prior low single digits due to net interest margin expansion.
Strong ETF inflows, notably the SPYM ETF ranked #1 globally in Q1 with $27 billion inflows, indicating expanding wealth channel distribution.
Digital asset initiatives and tokenization products are being developed, expected to open new revenue opportunities in institutional digital finance.
Long-term growth is supported by investments in AI, digital platforms, and scaled franchises across investment services and management.

Profitability & Margins

Expecting continued strong earnings growth, with Q1 marking the ninth consecutive quarter of year-over-year positive operating leverage (excluding notable items).
Reported EPS increased 22% year-over-year; adjusted EPS grew 39% year-over-year in Q1.
Fee revenue growth guidance raised to 7%-9% for 2026, up from previous 4%-6%, reflecting strong momentum.
Net interest income (NII) growth guidance increased to 8%-10%, improved from low single-digit growth previously.
Expenses expected to rise 5%-6%, up from 3%-4%, mainly due to higher revenue-related costs.
Pretax margin expected near 31% in 2026, up slightly, reflecting platform profitability progress.
Medium-term outlook (to be detailed in July) points to opportunities for further revenue growth and enhanced profitability.
Investments in AI, digital assets, and operating model transformation are viewed as key drivers of sustainable earnings growth.

See what State Street Corporation said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Ongoing investments in technology modernization and transformation, including embedding agile ways of working and solidifying a product platform approach.
Significant focus on AI: centralized AI hub supporting over 200 use cases, with tangible business impact expected in the second half of 2026.
Continued investments in client acquisition, product extensions, and geographic expansion, particularly in the Markets business and FX trading capabilities.
Strategic investments in building digital asset platforms, including tokenization of assets, funds, and cash, supporting digital finance transition.
Ongoing investment in Wealth Services, leveraging Charles River and Apex Financial Solutions to build a scalable wealth custody and clearing solution.
Investments in ETF business expansion, both in client segments and geographic channels.
Productivity improvements fund a meaningful portion of strategic investments, with about 4% productivity savings reinvested.
Medium-term capital deployment remains disciplined, targeting scalable growth and sustainable returns.

Fundraising & Capital Structure

The document does not indicate any current or planned new fundraising through debt or equity. Key points include: - Capital levels remain strong with a standardized CET1 ratio of 10.6% at quarter end, supporting disciplined capital deployment aligned with strategic priorities (Page 4). - In the first quarter, $400 million in common shares were repurchased and $233 million declared in dividends, totaling $633 million in capital return with a 90% payout ratio (Page 4). - The payout ratio target is roughly 80% on a GAAP basis, subject to Board approval and other factors (Page 13). - There is no mention of plans for new debt or equity issuance in the outlook or Q&A sections. Overall, the focus is on capital return and disciplined management, with no disclosed intentions for new fundraising activities.

See what State Street Corporation said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Software services uninstalled revenue backlog increased by 11% year-over-year in Q1.
Annual recurring revenue (ARR) for software grew 12% year-over-year, reflecting strong platform adoption.
Multiyear revenue growth in software services has consistently been around low double-digits (approx. 10-12%).
The growing backlog signals continued momentum and healthy demand across the client base.
The company expects this software services growth to persist over the medium term, with further potential upside from ongoing investments.
No specific dollar amount for the backlog was disclosed in the provided pages.

How does State Street Corporation rank vs peers in Capital Markets?

Pro feature

ThisState Street Corporation

Rev 3Mar 3

See where State Street Corporation sits in Capital MarketsSee which companies these are, and every other name in the sector.Open rankings

Others in Capital Markets this season

SEI Investments Company (Q2 FY26)
SEI Investments Company Q2 FY26 quarterly results analysis. Strong sales momentum in Investment Manager Services (IMS), driven by large alternative manager wins
Invesco Ltd. (Q2 FY26)
Invesco Ltd. Q2 FY26 quarterly results analysis. Continued organic growth with strong net long-term asset inflows, marking the 11th straight quarter of net infl
Evercore Inc. (Q2 FY26)
Evercore Inc. Q2 FY26 quarterly results analysis. Business outlook is positive with record performance recently, indicating strong activity levels across most b
Ares Capital Corporation (Q2 FY26)
Ares Capital Corporation Q2 FY26 quarterly results analysis. The software portfolio companies maintain a consistent EBITDA growth rate of approximately 9% year-

Compare:vs BlackRock, Inc.vs Interactive Brokers Group, Inc.vs S&P Global Inc.

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Frequently Asked Questions

What were State Street Corporation Q2 FY26 results?

What is State Street Corporation share price analysis?

State Street Corporation currently shows a below-average growth signal. The stock trades at a P/E of 16.1 with a market cap of $43,621. Investors should review the full earnings analysis for detailed insights.

Is State Street Corporation planning capital expenditure?

- Ongoing investments in technology modernization and transformation, including embedding agile ways of working and solidifying a product platform approach.

Keep State Street Corporation on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.