State Street posts 22% EPS jump as AUC/A hits record $54.5 trillion

State Street Corporation (NYSE:STT) reported a robust start to fiscal 2026, with first-quarter total revenue rising 16% year-over-year to $3.8 billion.

The Boston-based financial services giant posted diluted earnings per share (EPS) of $2.49, a 22% increase from the prior year.

When excluding $130 million in pre-tax notable items—primarily linked to workforce rationalization and operating model shifts—adjusted EPS climbed to $2.84, comfortably ahead of the $2.60 consensus estimate.

The bank's performance was fueled by broad-based growth across its primary business lines.

Fee revenue rose 15% to $2.96 billion, driven by higher equity market levels and net new business in investment servicing.

More impressively, Assets Under Custody and/or Administration (AUC/A) reached a record $54.5 trillion, up 17% year-over-year, while Assets Under Management (AUM) grew 20% to $5.6 trillion.

Net interest income (NII) also provided a significant tailwind, increasing 17% year-over-year to $835 million.

This was supported by a net interest margin (NIM) of 1.16%, which outperformed analyst projections of 1.09% as the bank benefited from a favorable deposit mix and higher interest rate environment.

Meanwhile, the bank maintained a strong focus on capital efficiency, reporting a return on average tangible common equity (ROTCE) of 17.6%.

During the quarter, State Street returned $633 million to shareholders through $400 million in share repurchases and $0.84 per-share dividends.

Its Common Equity Tier 1 (CET1) ratio remained healthy at 10.6%.