State Street posted second-quarter 2026 net income of $1.084 billion, up 56% from $693 million a year earlier and up 42% from $764 million in the first quarter.
Diluted earnings per share rose to $3.65 from $2.17 in 2Q25 and $2.49 in 1Q26.
Total revenue climbed to a record $4.048 billion, up 17% from $3.448 billion in 2Q25 and up 7% from $3.796 billion in 1Q26. Fee revenue increased to $3.188 billion from $2.719 billion a year earlier and from $2.960 billion in the prior quarter. Net interest income rose to $860 million from $729 million in 2Q25 and $835 million in 1Q26.
Expenses were $2.659 billion, up 5% from $2.529 billion in 2Q25 but down 5% from $2.811 billion in 1Q26.
Pre-tax margin widened to 34.3% from 25.8% in 2Q25 and 25.5% in 1Q26. Return on average common equity improved to 16.7% from 10.8% a year earlier and 11.6% in the first quarter. Return on average tangible common equity rose to 25.5% from 16.7% and 17.6%.
Assets under custody and/or administration reached a record $57.858 trillion, up 18% from $49.000 trillion a year earlier and up 6% from $54.515 trillion in 1Q26. Assets under management also hit a record $6.278 trillion, up 23% from $5.117 trillion in 2Q25 and up 12% from $5.620 trillion in 1Q26.
Within servicing revenue, fees rose to $1.468 billion from $1.304 billion a year ago and $1.409 billion in 1Q26. Management fees increased to $772 million from $600 million a year earlier and $724 million in the prior quarter. Foreign exchange trading services revenue climbed to $494 million from $393 million in 2Q25 and $435 million in 1Q26. Securities finance revenue rose to $150 million from $126 million a year earlier and $116 million in the prior quarter. Software services revenue was $166 million, down from $169 million in both 2Q25 and 1Q26.
Quarter-end AUC/A by product showed collective funds, including ETFs, at $20.055 trillion, up from $16.728 trillion a year earlier and $18.338 trillion in 1Q26. Mutual funds were $14.353 trillion, up from $12.641 trillion and $13.309 trillion. Pension products reached $11.219 trillion, up from $9.679 trillion and $10.912 trillion. Insurance and other products were $12.231 trillion, up from $9.952 trillion and $11.956 trillion.
Quarter-end AUM by asset class showed equity assets at $4.051 trillion, up from $3.496 trillion in 1Q26 and $3.496 trillion a year earlier. Fixed-income assets rose to $776 billion from $756 billion in 1Q26 and $756 billion in 2Q25. Cash assets increased to $621 billion from $581 billion in 1Q26 and $581 billion in 2Q25. Multi-asset reached $567 billion from $503 billion in 1Q26 and $503 billion in 2Q25. Alternative investments were $263 billion, down from $284 billion in 1Q26 and $284 billion in 2Q25.
Net asset flows were $114 billion in 2Q26, up from $49 billion in 1Q26 and $82 billion in 2Q25. ETF net flows were $68 billion, compared with $25 billion in 1Q26 and $15 billion a year earlier. Other index flows were $15 billion, up from $13 billion in 1Q26 and down from $81 billion in 2Q25. Active, alternatives and other posted $3 billion of inflows, versus a $4 billion outflow in 1Q26 and a $13 billion outflow in 2Q25.
State Street returned $631 million to common shareholders in the quarter, including $400 million of share repurchases and $231 million of dividends, or $0.84 per share. The company’s CET1 ratio was 10.8%, up from 10.7% in 2Q25 and 10.6% in 1Q26. As a result of these announcements, the company's shares have moved -0.52% on the market, and are now trading at a price of $185.62. For the full picture, make sure to review STATE STREET CORP's 8-K report.
