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what it is
State Street holds client assets, manages money, and runs trading services for big investors.
how it gets paid
Last year State Street made $13.9B in revenue. Investment servicing was the main engine at $6.0B, or 43% of sales.
why it's growing
Revenue grew 7.3% last year. Servicing fees rose 8% and management fees rose 15%.
what just happened
State Street posted $2.97 EPS, above the $2.80 estimate.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
70/100 earnings predictability — reasonably predictable
13.0x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
xvary composite: 69/100 — average
What they do
State Street holds client assets, manages money, and runs trading services for big investors.
You do not move $53.8 trillion of custody assets, meaning money held for clients, because the switch is painless. State Street also manages $5.7 trillion, meaning money it invests for clients, so it earns fees on the vault and the advisor. That is two toll booths on the same road.
How they make money
$13.9B
annual revenue · their business grew +7.3% last year
Investment servicing
$6.0B
+8.0%
Investment management
$3.7B
+15.0%
Markets and FX trading
$1.9B
+10.0%
Securities finance and lending
$1.4B
+10.0%
Other fees and services
$0.9B
+7.3%
The products that matter
custody and fund administration
Investment Services
$8.3B · 60% of revenue
it's the core $8.3B fee engine, but 2% growth tells you this business wins with scale and stickiness, not speed.
core engine
trading, FX, and securities finance
Markets
$4.2B · +15% growth
this $4.2B segment grew 15% in 2025. It helped mask slower growth elsewhere, which is useful now but not something you want carrying the whole story forever.
growth driver
institutional asset management
Investment Management
$1.4B · +5% growth
management fees rose 15% in the latest quarter and assets under management reached $5.7T. For a $1.4B segment, market levels matter a lot.
market-sensitive
Key numbers
$53.8T
assets under custody
assets under custody → money held for clients → so what: that is the fee base that keeps the lights on.
$5.7T
assets under management
assets under management → money it invests for clients → so what: more client money means more recurring fees.
13.0x
trailing p/e
trailing p/e → price versus last year's earnings → so what: 13.0x says the stock is not expensive.
2.9%
dividend yield
dividend yield → cash paid each year → so what: 2.9% pays you while you wait.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $25.1B (40% of capital)
- return on equity 14% — $0.14 profit for every $1 investors have put in
A+ — balance sheet grade looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in STT 3 years ago → it's now worth $16,040.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
State Street posted $2.97 EPS, above the $2.80 estimate.
Servicing fees rose 8% and management fees rose 15%. That is the whole story: more assets, more fee income.
$3.3B
revenue
$2.97
eps
6.07%
surprise
the number that mattered
EPS of $2.97 beat the $2.80 estimate by 6.07%, which says fee income is still outrunning expectations.
-
state street entered 2026 on sound footing, off the heels of a strong 2025 fourth quarter.
-
during the december period, servicing fees increased 8% vs. prior year, supported by higher average market levels, net new business, and favorable currency translation.
-
the investment management business also contributed to revenue growth, with management fees rising 15% vs. prior year due to higher market levels and strong new inflows of $85 billion across exchange traded funds (etfs), cash, and institutional segments.
-
assets under management reached a record $5.7 trillion, reflecting continued client inflows and higher market levels.
-
additionally, state street markets played a role in revenue growth, with foreign exchange (fx) trading services revenue increasing 13% vs. prior year, supported by strong client engagement and activity across trading venues.
source: company earnings report, 2026
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What could go wrong
the top threat is texas antitrust litigation tied to climate-investing alliances, and it lands at the same time State Street is already dealing with margin pressure.
high
Texas antitrust lawsuit exposure
State Street was named alongside BlackRock and Vanguard in a Texas climate-related antitrust suit. Management called it baseless, but lawsuits do not need to be valid to be expensive.
the current risk work on this page points to $2.1B–$3.5B of revenue exposure if ESG-related mandates are restricted
med
margin compression trend
Pre-tax profit margin fell 3.1 percentage points to 25%. Expenses rose to $2.74B from $2.43B in Q3, which means revenue growth did not fully translate into operating leverage.
if that pressure persists, the earnings beat stops mattering and the 13.0x multiple stops looking cheap
med
political pressure on ESG products
Political scrutiny around sustainable investing can slow product expansion, complicate distribution, and make client conversations more defensive than additive.
this matters most in the investment management business, where new flows and product momentum help justify the growth story
Combined, these risks put $2.1B–$3.5B of revenue exposure in play and matter more if the 25% pre-tax margin keeps slipping.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
RBC Capital Markets conference
March 11, 2026 — management presents in New York. For a stock with a flat near-term target, tone matters almost as much as numbers.
metric
pre-tax margin
Q4 landed at 25% after a 3.1-point drop. If that number does not stabilize, the quarter's EPS beat will age badly.
trend
Investment Services growth
The core segment generated $8.3B and grew 2%. You want the biggest business moving faster than that, not slower.
risk
Texas lawsuit timeline
Watch for any legal or policy update tied to the climate-antitrust case. Even if the claims go nowhere, the headlines can still shape mandates and client behavior.
Analyst rankings
earnings predictability
70 / 100
In human-speak, this is a reasonably steady earnings story, but not one you treat like a metronome.
street target spread
$135.83
The average target sits almost on top of the current $134.28 stock price. Analysts are not calling for fireworks.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 466 buyers vs. 394 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$109
$185
$134
current price
$147
target midpoint · +9% from current · 3-5yr high: $205 (+55% · 14% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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