STATE STREET CORP Q4 2025 – $3.7B Revenue, 7% YoY Increase

By Hao Liu • Friday, January 16 09:29 • Permanent Link

State Street Corporation reported a strong performance in the fourth quarter of 2025, with a total revenue of $3.7 billion, representing a 7% year-over-year increase. Their diluted earnings per share (EPS) for the same period was $2.42, a decrease of 13% compared to the previous quarter and a decrease of 2% compared to the same period last year.

The company's pre-tax margin was 25.0%, showing a 6.1% decrease compared to the previous quarter and a 3.1% decrease year-over-year. Additionally, the return on average common equity (ROE) was 11.3%, a decrease of 2.1% points compared to the previous quarter and a 1.4% decrease year-over-year. The return on average tangible common equity (ROTCE) was 17.5%, a 3.4% decrease compared to the previous quarter and a 2.8% decrease year-over-year.

State Street's investment servicing assets under custody and/or administration (AUC/A) increased by 16% year-over-year to $53.8 trillion, driven by higher market levels and flows. Additionally, their investment management assets under management (AUM) increased by 20% year-over-year to $5.7 trillion, mainly due to higher market levels and net inflows.

The company saw notable increases in fee revenue, with servicing fees increasing by 8% year-over-year, management fees increasing by 15% year-over-year, and foreign exchange trading services increasing by 13% year-over-year. However, software and processing fees decreased by 15% year-over-year.

Total expenses increased by 12% year-over-year, primarily due to notable items totaling $206 million in the fourth quarter of 2025. Excluding notable items, total expenses increased by 6% year-over-year, driven by investments in business and technology capabilities, revenue-related costs, and the impact of currency translation.

In terms of capital and liquidity, State Street's standardized common equity tier 1 (CET1) ratio at quarter-end was 11.7%, representing an increase of 0.8% compared to the fourth quarter of 2024. They also returned a total of $635 million of capital to common shareholders in the fourth quarter of 2025, including $400 million of share repurchases and $235 million of declared dividends.

As a result of these announcements, the company's shares have moved 0.04% on the market, and are now trading at a price of $132.28. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.