State Street Corp.

Strong Q2 performance; EPS and revenue hit record levels - 2Q 2026 EPS: $3.65 vs. $2.17 in 2Q 2025 (excl. prior-year notable items: +44% YoY). - Total revenue: +17% YoY to $4.0B (record) driven by record fee revenue and record servicing/management/FX trading plus record NII. - 10th consecutive quarter of positive operating leverage (excluding notable items). - Margin/returns improvement: pretax margin expanded +470 bps YoY to 34%; ROTCE ~26% (up 6+ pts YoY, excluding notable items). - *Good:* clear breadth of strength across Investment Services, Investment Management, and Markets.

Operating drivers and balance sheet/capital strength - Fees: $3.2B (+16% YoY); Servicing fees $1.5B (+13% YoY) on ~7% organic growth; AUCA: $57.9T (+18% YoY). - Management fees: $772M (+29% YoY) with AUM $6.3T (+23% YoY); net inflows $114B (5th consecutive quarter of positive organic growth), led by ETF inflows (e.g., $66B) and cash inflows ($35B). - Markets: FX trading revenue +27% YoY to $494M on record volumes; securities finance +19% YoY. - Net interest income: $860M (+18% YoY); NIM +17 bps to 113 bps (driven by funding mix, portfolio repricing/hedge runoff; partly offset by lower market rates). - Capital ratios robust: CET1 10.8%, Tier 1 leverage 5.3% (stable). - *Surprising/positive:* despite strong performance, headcount down ~3% YoY, implying productivity-supported cost discipline.

Full-year 2026 outlook upgraded meaningfully (key forecasts) - Outlook excludes notable items; assumes flat global equities from end of 2Q through year-end, and rates broadly aligned with forward curves (Fed/BOE on hold; ECB +1 hike). - Fee revenue growth now 12–13% (up from prior 7–9%). - NII growth now 14–15% (up from prior 8–10%), mainly from stronger deposit balances. - Expenses expected +~8% (up from prior 5–6%) due to revenue-related costs and continued investment. - Positive operating leverage ~500 bps in 2026 → implied pretax margin ~32%. - Effective tax rate ~22%; total payout ratio ~80% (board approval dependent). - *Good:* the upgrade suggests visibility improved across both fees and NII, not just one segment.