Challenge RatePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Base5Base 5GAAP revenue YoY +2.18% → base 5. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript+2
Transcript +2FMP GAAP revenue YoY +2.18% (base 5). However, management reports total revenue +16% ex-notable items to record $3.8B. FMP's revenue metric for STT structurally diverges from management's 'total revenue' this quarter — the 14 percentage points gap far exceeds any notable-item impact ($130M pretax, of which only ~$41M is revenue-affecting rescoping). This is a Tier 2 bank structural mismatch: FMP 'revenue' for custodian banks can exclude or net certain interest income components differently from management's total revenue presentation. Transcript total revenue ~+14-16% GAAP. Or 8. FMP base 5 vs transcript base 8 = 3-band gap, capped at +2.
+
EPS+1EPS +1Vendor OI cross-check (oi_yoy +17.88%, operating income spread +15.70 percentage points) inadmissible: STT files no us-gaap OperatingIncomeLoss concept (no-oi-subtotal.ts line 91), so operating_income is a vendor reconstruction, not a reported figure. Dropped as corroboration. +1 (operating leverage) rests on the admissible filed GAAP EPS-vs-revenue spread: reported GAAP EPS +22.06% vs FMP GAAP revenue +2.18% = +19.88 percentage points, and +6.06 percentage points against management total revenue +16% (ex-notable), outside +5 percentage points on either basis so +1 is robust to the revenue basis (FMP GAAP revenue structurally understates STT total revenue, already handled by transcript_adjustment +2). Corroborated by management-stated operating measures on the call: CFO John Woods stated 'over 600 basis points of positive operating leverage in the quarter, excluding notable items' and '400 basis points of pretax margin expansion and a roughly four percentage point increase in ROTCE to 20%'; CEO Ron O'Hanley cited the 'ninth consecutive quarter of year-over-year positive operating leverage.' Pretax margin expanded, so the leverage is operating and above the buyback and tax lines, not a below-the-line or EPS-denominator artifact. Robustness: ex-notable EPS +39% vs total revenue +16% = +23 percentage points, decisively +1 on a like-for-like basis. Override stays false (the mechanical GAAP EPS-vs-revenue answer is already +1; the management operating-leverage figures corroborate, they do not drive). +1.
+
Guidance+1Guidance +1Fee revenue guide raised from 4-6% to 7-9% (same fiscal year revision). Prior midpoint 5% growth, new midpoint 8% growth. Dollar-implied change: (1.08 - 1.05) / 1.05 = 2.86%. Raise <3%.
=
Final9
How this score was built
Base5Base 5GAAP revenue YoY +2.18% → base 5. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript+2Transcript +2FMP GAAP revenue YoY +2.18% (base 5). However, management reports total revenue +16% ex-notable items to record $3.8B. FMP's revenue metric for STT structurally diverges from management's 'total revenue' this quarter — the 14 percentage points gap far exceeds any notable-item impact ($130M pretax, of which only ~$41M is revenue-affecting rescoping). This is a Tier 2 bank structural mismatch: FMP 'revenue' for custodian banks can exclude or net certain interest income components differently from management's total revenue presentation. Transcript total revenue ~+14-16% GAAP. Or 8. FMP base 5 vs transcript base 8 = 3-band gap, capped at +2.+EPS+1EPS +1Vendor OI cross-check (oi_yoy +17.88%, operating income spread +15.70 percentage points) inadmissible: STT files no us-gaap OperatingIncomeLoss concept (no-oi-subtotal.ts line 91), so operating_income is a vendor reconstruction, not a reported figure. Dropped as corroboration. +1 (operating leverage) rests on the admissible filed GAAP EPS-vs-revenue spread: reported GAAP EPS +22.06% vs FMP GAAP revenue +2.18% = +19.88 percentage points, and +6.06 percentage points against management total revenue +16% (ex-notable), outside +5 percentage points on either basis so +1 is robust to the revenue basis (FMP GAAP revenue structurally understates STT total revenue, already handled by transcript_adjustment +2). Corroborated by management-stated operating measures on the call: CFO John Woods stated 'over 600 basis points of positive operating leverage in the quarter, excluding notable items' and '400 basis points of pretax margin expansion and a roughly four percentage point increase in ROTCE to 20%'; CEO Ron O'Hanley cited the 'ninth consecutive quarter of year-over-year positive operating leverage.' Pretax margin expanded, so the leverage is operating and above the buyback and tax lines, not a below-the-line or EPS-denominator artifact. Robustness: ex-notable EPS +39% vs total revenue +16% = +23 percentage points, decisively +1 on a like-for-like basis. Override stays false (the mechanical GAAP EPS-vs-revenue answer is already +1; the management operating-leverage figures corroborate, they do not drive). +1.+Guidance+1Guidance +1Fee revenue guide raised from 4-6% to 7-9% (same fiscal year revision). Prior midpoint 5% growth, new midpoint 8% growth. Dollar-implied change: (1.08 - 1.05) / 1.05 = 2.86%. Raise <3%.=Final9
Macro Signals
↓Trade & Tariffs↑Enterprise Spending↑Credit
Record quarterly revenue of $3.8 billion grew 16% excluding notable items with fee revenue surging 15% and NII breaking out at 17% growth, as State Street achieved its ninth straight quarter of operating leverage. The fee revenue guide was raised from 4-6% to 7-9% and NII guide from low single digits to 8-10%, reflecting broad-based strength including record FX volumes, SPYM becoming the world's largest asset-gathering ETF with $27 billion in inflows, and NIM expanding to 116 basis points. AI deployment scaled to over 200 use cases with agentic capabilities while the digital asset platform went live.
Key Themes7
positive📊 company
Record Quarterly Revenue With Ninth Straight Quarter Of Operating Leverage
Record quarterly total revenue of $3.8 billion, up 16% year-over-year excluding notable items. Fee revenue of $3 billion increased 15%. Ninth consecutive quarter of positive operating leverage with over 600bps in Q1. Pretax margin expanded 400bps, ROTCE increased to 20%.
Revenue GrowthMargin
positive📊 company
FX Trading Surges On Record Client Volumes
FX trading revenue increased 29% year-over-year to $435 million driven by record 25% increase in client volumes. Supported clients through dynamic market environment. Multi-year investments in client acquisition, product extensions, and geographic expansion delivering results.
Revenue GrowthCompetitive Dynamics
positive📊 company
NII Breaks Out With 17% Growth And NIM Expansion To 116bps
NII of $835 million increased 17% year-over-year. NIM expanded 16bps to 116bps driven by funding mix improvements and terminated hedge runoff. Balance sheet optimization reducing short-term wholesale funding. Deposit levels surged in Q1 with improved non-interest-bearing mix.
CreditMargin
positive📊 company
Fee And NII Guidance Raised Significantly
Fee revenue guide raised from 4-6% to 7-9%. NII guide raised from low single digits to 8-10%. Expense guide raised from 3-4% to 5-6% reflecting higher revenue-related costs. Continues to target positive operating leverage and ~80% payout ratio.
Guidance ReliabilityRevenue Growth
positive📊 company
SPYM Low-Cost ETF Becomes World'S Largest Asset-Gatherer
SPYM low-cost S&P 500 ETF ranked number one asset-gathering ETF globally in Q1 with $27 billion of inflows. Total investment management net inflows of $49 billion. AUM of $5.6 trillion, up 20% year-over-year. Launched 57 new products in the quarter.
DemandCompetitive Dynamics
positive📊 company
AI Deployment Scaling With 200+ Use Cases And Agentic Capabilities
Over 200 AI use cases with 70 already live. Agent-enabled service delivery launching in July. AI Foundry platform to repeat and scale. All developers have AI tools with productivity gains already realized. Tangible business impact expected to emerge in H2 2026 and accelerate into 2027.
Innovation & R&DMargin
positive📊 company
Digital Asset Platform Live With Tokenized Fund Strategies Imminent
Digital asset platform launched and executing against product roadmap. Well advanced with clients to support tokenized fund strategies this year. Galaxy partnership for tokenized liquidity sweep fund. Engaged in DTCC tokenization and Fnality payment system initiatives. Both retention and new revenue opportunities identified.
I find it interesting that average interest-earning assets were only up 1%, so I am interested if you could talk to the tug-of-war dynamic of better NIM but not a ton of earning asset growth
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
“total revenue increased 16% year-over-year to record $3.8 billion excluding notable items; fee revenue increased 15%”
Guidance
“fee revenue guide raised from 4-6% to 7-9%; NII guide raised from low single digits to 8-10%; expenses raised from 3-4% to 5-6%”
Key metric
“SPYM #1 global asset-gathering ETF ($27B inflows); AUM $5.6T; NIM expanded to 116bps; FX volumes record +25% YoY”
Mentions9
What STT and other companies said about each other on FY2026 Q1 earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“with the expanded partnerships with BlackRock and State Street, we look forward to working with them to make the Nasdaq 100 more accessible to their investor universe and to help drive additional institutional adoption.”
State Street becomes a new Nasdaq-100 index licensee/ETF partner, giving Nasdaq additional distribution for its flagship index into State Street's investor universe.
“in connection with the support of State Street's product that mixed for the first time public and private investment grade, we began market making.”
Apollo began market-making in private assets in support of a State Street product blending public and private investment grade, a distribution partnership for State Street.
“On Schwab, we do not have a concrete plan yet because we have not seen the final.”
State Street is evaluating how to respond to Schwab's potential distribution-platform fees for ETFs but does not see them as a material risk to its ETF business.
Galaxynot trackedFY2026 Q1Partner
“Our Galaxy product is a partnership with Galaxy.”
State Street's tokenized/on-chain Galaxy liquidity product is built in partnership with Galaxy, illustrating its make-versus-partner approach in digital assets.
Bridgewaternot trackedFY2026 Q1Partner
“our State Street Bridgewater All Weather ETF surpassed $1 billion in assets under management during the quarter”
The co-branded State Street Bridgewater All Weather ETF crossed $1B AUM, a positive signpost for the Bridgewater partnership.
“our investment-grade public and private credit ETF, developed in partnership with Apollo Global Management, reach a new high watermark during January with AUM of over $800 million”
State Street's public/private credit ETF developed with Apollo Global Management reached over $800M AUM, a positive read-through for the SSGA-Apollo partnership.
“our strategic partnership with Apex Financial Solutions to build a differentiated, fully digital, and globally scalable wealth custody and clearing solution”
State Street is partnering with Apex Financial Solutions to build a digital wealth custody and clearing platform, opening a new growth avenue in wealth services.
Fnalitynot trackedFY2026 Q1Partner
“Fnality's work to create an ecosystem of central-bank-connected, blockchain-based payment systems”
State Street is participating in Fnality's blockchain-based, central-bank-connected payment ecosystem as part of its digital-markets strategy.
DTCCnot trackedFY2026 Q1Partner
“including DTCC's tokenization efforts”
State Street is engaged in DTCC's tokenization initiatives as part of building digital-asset market infrastructure.
Record quarterly revenue of $3.8 billion grew 16% excluding notable items with fee revenue surging 15% and NII breaking out at 17% growth, as State Street achieved its ninth straight quarter of operating leverage
Revenue rose 27% year over year to $6.7 billion and as-adjusted earnings per share of $12.53 was 11% higher, as $130 billion of net inflows drove 8% organic base fee growth, BlackRock's seventh consecutive quarter at or above 5%
Northern Trust extended its positive operating leverage streak to seven consecutive quarters, posting record NII of $662 million, up 15% year-over-year, and EPS of $2.71, up 43%