State Street reported 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, compared with $2.17 in the prior-year quarter and $2.49 in the prior quarter.
Total revenue reached a record $4.048 billion, up 17% from $3.448 billion in the second quarter of 2025 and up 7% from $3.796 billion in the first quarter of 2026. Fee revenue increased to $3.188 billion from $2.719 billion a year ago and $2.960 billion in the first quarter. Net interest income climbed to $860 million from $729 million a year ago and $835 million in the prior quarter.
Expenses totaled $2.659 billion, up 5% from $2.529 billion in the second quarter of 2025, but down 5% from $2.811 billion in the first quarter. Pre-tax margin improved to 34.3% from 25.8% a year earlier and 25.5% in the prior quarter.
Return on average common equity rose to 16.7% from 10.8% a year ago and 11.6% in the first quarter. Return on average tangible common equity increased to 25.5% from 16.7% a year earlier and 17.6% in the prior quarter.
Assets under custody and/or administration hit a record $57.858 trillion, up 18% from $49.000 trillion a year earlier and up 6% from $54.515 trillion in the first quarter. Assets under management also reached a record $6.278 trillion, up 23% from $5.117 trillion a year ago and up 12% from $5.620 trillion in the prior quarter.
Within assets under custody and/or administration, collective funds including ETFs rose to $20.055 trillion from $16.728 trillion a year earlier. Mutual funds increased to $14.353 trillion from $12.641 trillion. Pension products climbed to $11.219 trillion from $9.679 trillion. Insurance and other products rose to $12.231 trillion from $9.952 trillion.
On the asset-management side, equity AUM increased to $4.051 trillion from $3.496 trillion in the first quarter, while fixed income rose to $776 billion from $756 billion. Cash increased to $621 billion from $581 billion, multi-asset to $567 billion from $503 billion, and alternative investments fell to $263 billion from $284 billion.
By geography, Americas AUM increased to $4.573 trillion from $4.108 trillion in the first quarter. Europe, Middle East and Africa rose to $956 billion from $845 billion, and Asia-Pacific increased to $749 billion from $667 billion.
By vehicle, ETF assets increased to $2.204 trillion from $1.940 trillion in the first quarter. Separately managed accounts rose to $2.340 trillion from $2.120 trillion, and other commingled funds increased to $1.734 trillion from $1.560 trillion.
Net asset flows totaled $114 billion in the quarter, compared with $49 billion in the first quarter. ETF net inflows were $68 billion, up from $25 billion. Other index strategies and solutions brought in $15 billion, up from $13 billion, while active, alternatives and other posted $3 billion of inflows versus a $4 billion outflow in the prior quarter.
Management fees rose to $772 million from $600 million a year earlier and $724 million in the first quarter. Servicing fees increased to $1.468 billion from $1.304 billion a year earlier and $1.409 billion in the prior quarter. Foreign exchange trading services revenue climbed to $494 million from $393 million a year earlier and $435 million in the first quarter. 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 a year earlier and down from $169 million in the first quarter.
The company’s CET1 ratio was 10.8% at quarter-end, up from 10.7% in the first quarter and 10.7% a year earlier. State Street returned $631 million to common shareholders in the quarter, including $400 million of share repurchases and $231 million in dividends. Today the company's shares have moved -0.72% to a price of $185.24. Check out the company's full 8-K submission here.
