Transcript: State Street Q2 2026 Earnings Conference Call

State Street (NYSE: STT ) released second-quarter financial results and hosted an earnings call on Thursday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary State Street Corporation reported a strong second quarter with EPS up to $3.65 from $2.17 in the previous year, driven by a 44% increase in earnings and a 17% rise in total revenue to a record high.

The company announced new medium-term financial targets, aiming for a 35% pre-tax margin and mid-20s return on tangible common equity, supported by strategic initiatives in digital assets, wealth services, and alternatives.

State Street continues to focus on technology and AI-enabled transformation to improve productivity, aiming for $1 billion in run-rate transformation benefits by 2029, with 75% from expense productivity and 25% from revenue.

Management highlighted the strength in investment services and markets, notably record FX trading volumes and a selection as the exclusive default ETF for Trump accounts with SPY M.

The company increased its quarterly dividend by 10% to $0.92 per share and plans a total payout ratio of approximately 80% over the medium term.

Full Transcript Elizabeth Lynn, Head of Investor Relations Good morning and welcome to State Street Corporation Second Quarter 2026 Earnings Conference Call and Webcast.

Today's call will be hosted by Elizabeth Lynn, Head of Investor Relations at State Street.

We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session.

Today's discussion is being broadcast live on State Street's website at investors.statestreet.com.

This conference call is also being recorded for replay.

State Street's conference call is copyrighted and all rights are reserved.

This call may not be recorded for rebroadcast or distribution in part or in whole without the express written authorization from State Street Corporation.

The only authorized broadcast of this call will be on the State Street website.

Now I would like to hand the call over to Elizabeth Lynn.

Good morning and thank you all for joining us.

On today's call, our CEO Ron O'Hanley and our CFO John Woods will review our second quarter 2026 results and provide an update on our medium-term financial outlook.

Both are included in our earnings presentation which is available in the Investor Relations section of our website at investors.statestreet.com.

Following prepared remarks, we will be happy to take your questions.

Before we get started, I'd like to remind you that today's presentation will include results presented on a basis that excludes or adjusts one or more items from GAAP.

Reconciliations of these non-GAAP measures to the most directly comparable GAAP or regulatory measure are available in the Earnings Release Addendum.

In addition, today's call will contain forward-looking statements.

Actual results may differ materially from those statements due to a variety of important factors such as those referenced in our discussion today and in our SEC filings, including the Risk Factors section in our form 10-K.

Our forward-looking statements speak only as of today and we disclaim any obligation to update them even if our views should change.

With that, let me turn it over to Ron.

Ronald O'Hanley, Chairman and Chief Executive Officer Thank you, Liz.

Good morning everyone and thank you for joining us today.

We'll focus on two key topics.

First, we'll review our strong second quarter performance, the momentum we continue to build across the franchise, and our improving outlook for 2026.

We'll then discuss our new medium-term financial targets which we released this morning.

We are excited to outline the strategic pillars that will drive this next phase of State Street's growth, the significant opportunities we see to further strengthen our compelling value proposition and competitive position, and the actions we are taking to further transform our operating model.

Together, these initiatives reinforce our confidence in our ability to deliver sustained growth, expand margins and returns, and create long-term value for our clients and shareholders.

But first, let me begin with our second quarter highlights on Slide 3.

We delivered a strong set of financial results in the second quarter driven by disciplined execution, deep client engagement, and continued momentum across our businesses.