State Street Delivers Strong Q3 2026 Results, Demonstrating Franchise's Earnings Power
Morning, and welcome to State Street Corporation's third quarter 2026 earnings conference call. Today, the company delivered another period of strong financial and business performance, as highlighted on slide two. The presentation, which is available for download in the investor relations section of its website, investors.statestreet.com, demonstrated the momentum State Street continues to build across the firm.
Despite a dynamic, complex, and interconnected environment requiring investors to manage a wide range of risk and opportunities, State Street's results again showed the strength of its operating model and continued focus on disciplined execution. The company generated its 11th consecutive quarter of positive year-over-year operating leverage, excluding notable items. This reflected both the earnings power of their franchise and momentum they continue to build across the firm.
Earnings per share of $3.69 increased 33% year-over-year, supported by double-digit growth in fee revenue, NII, and total revenue. State Street was particularly pleased with the momentum seen in core businesses during the quarter. They generated record quarterly servicing and management fees and delivered record FX client volumes, demonstrating their ability to capture client activity and benefit from the scale and breadth of their platform.
Combined with a pre-tax margin of 35% and a return on tangible common equity of 25%, these results reflect both the strength of State Street's franchise today and investments they are making to position the company for long-term growth. In July, an important milestone was marked as new medium-term financial targets were introduced, outlining strategic growth initiatives and transformation agenda that will drive State Street's next phase of growth.
State Street CEO Ron O'Hanley stated, "The world's investors face a dynamic, complex environment requiring them to manage risk and opportunities. Our ability to combine the strengths and quality of asset servicing, investment management, and markets as one State Street allows us to effectively help clients navigate change, manage risk, and pursue their objectives with greater confidence."
State Street believes this environment reinforces the importance of its role, value of relationships they have built with investors, and strength of the One State Street model. The company's positive momentum carried into the third quarter, demonstrating a company executing with discipline, investing for future growth, and increasingly operating as One State Street.
