State Street announced new medium-term targets of a 35% pretax margin and mid-20s return on tangible common equity, while raising its full-year 2026 fee revenue growth forecast to 12% to 13% from a prior 7% to 9%. The bank also lifted its net interest income growth outlook to 14% to 15% from 8% to 10%, and now expects expenses to rise roughly 8%, up from 5% to 6%. Second-quarter total revenue jumped 17% year-over-year to a record $4 billion, with servicing fees up 13% to $1.5 billion and management fees surging 29% to $772 million on $114 billion of net inflows. Earnings per share reached $3.65, compared with $2.17 a year earlier, and the company declared a 10% dividend increase to $0.92 per share. Executives also outlined plans to launch tokenized fund servicing by year-end, subject to regulatory approval, and projected $1 billion in run-rate transformation benefits by 2029, with associated one-time costs of around $500 million, mostly severance-related.
State Street CorpState Street raised its 2026 fee revenue growth outlook to 12%-13%, lifted NII growth forecast, and reported record Q2 revenue and EPS beat.