RBC Capital cuts State Street stock price target on valuation

State Street reported Q3 2026 earnings with EPS of $3.69, up 33% YoY, driven by double-digit growth in fee revenue and NII. The company achieved record servicing and management fees, FX client volumes, and assets under custody and administration at $59 trillion. State Street also announced an agreement to acquire Santander CACEIS Latin American Securities Services business, expected to close in 2027.

State Street (STT) reported Q3 earnings, with key metrics including a 5.5% Tier 1 Leverage Ratio, 1.1% net interest margin, and $6.3T in AUM. Most figures met or exceeded analyst estimates, with notable items being $3.14B in total fee revenue and $864M in net interest income.

State Street Corp (STT) reported Q3 2026 earnings, with record AUC/A of $59. Other fee revenue declined by ~$30M YoY, and FX revenue fell 14% QoQ. Loan growth slowed, but NII is expected to grow in Q4. The company plans to increase buybacks to achieve an 80% payout ratio. Management expressed confidence in medium-term targets, citing strong NII trends and organic fee growth.

State Street Corp (STT) reported Q3 2026 revenue of $4B, up 13% YoY. Fee revenue rose 11%, servicing fees increased 10%, and management fees grew 20%. Net interest income climbed 21%, with EPS at $3.69, up 33% YoY. AUM and AUC/A reached record highs. The company raised full-year guidance, expecting 13-14% fee revenue growth and 15-16% NII growth. Challenges include a decline in other fee revenue and FX revenue. Capital returned to shareholders totaled $651M, with a payout ratio of ~63%.

State Street's new wealth-services unit secured its first client, a large U.S. registered investment advisor, according to CEO Ron O'Hanley. The unit combines custody, clearing, and technology services. State Street reported Q3 net income of $1.1B, up 27% YoY, with record assets under custody and management. The stock fell 4.1% despite earnings beat.

State Street (STT) reported Q3 2026 earnings with a 33% YoY increase in EPS to $3.69 and 13% revenue growth to $4B. Growth was driven by record servicing and management fees. The company's P/S ratio is 3.38x, above its historical median, indicating market confidence in future growth. STT plans to acquire Santander CACEIS Latin American Securities Services and launch a tokenized fund servicing capability. Insiders and gurus have shown mixed activity, with net selling over the past year.