State Street Updated 2026 Fee Revenue Growth Outlook Trails Views; Shares Fall

02:13 PM EDT, 10/14/2026 (MT Newswires) -- State Street (STT) shares were down Wednesday as the financial services company's updated full-year fee revenue outlook trailed Wall Street's expectations, while its third-quarter top-line missed market views. For 2026, the company now expects fee revenue to increase about 13% to 14% year over year, compared with its prior growth outlook range of 12% to 13%. Analysts polled by FactSet are looking for 14.3% growth. "Our market assumptions reflect global equity markets remaining flat from current levels, and our interest rate expectations remain broadly aligned with forward curves," Chief Financial Officer John Woods said on an earnings conference call, according to a FactSet transcript. For the September quarter, the company's earnings rose to $3.69 a share from $2.78 a year earlier. Consolidated revenue increased 13% to $4 billion, but fell short of the Street's $4.03 billion views. State Street shares were down 6.5% in afternoon trade. The stock has increased 26% so far this year. Third-quarter fee revenue reached $3.14 billion, up 11% annually but down 2% sequentially, with other fee revenue down 29% mainly due to market-related adjustments. Fee revenue would have grown 12% year over year excluding the impact of about $30 million of market-related gains in the year-ago quarter, Woods told analysts. Net interest income increased 21% to $864 million. "We generated record quarterly servicing and management fees, as well as record (foreign exchange) client volumes, reflecting the strength of our client relationships and the breadth of our capabilities," Chief Executive Ron O'Hanley said in a statement. State Street now expects full-year net interest income to grow between 15% and 16%, up from its previous growth outlook range of 14% to 15%. Assets under custody and administration soared 15% year-over-year to a record $59.173 trillion, driven by market gains, new client wins and capital inflows. Assets under management jumped 16% to an all-time high of $6.306 trillion largely due to increased market gains and net inflows, according to the company. Separately, Morgan Stanley (MS) on Wednesday reported third-quarter results above the Street's estimates, while Bank of America (BAC) logged an unexpected year-over-year decline in earnings. On Tuesday, Wells Fargo (WFC) reported higher-than-expected third-quarter earnings, although its revenue fell short of market projections amid disappointing net interest income. JPMorgan Chase's (JPM) results missed market expectations amid investment securities losses, while Citigroup (C) and Goldman Sachs (GS) beat Street estimates. "The world's investors today face a dynamic, complex and interconnected environment, requiring them to manage a wide range of risks and opportunities," O'Hanley told analysts Wednesday. "Fiscal and sovereign debt pressures, credit, geopolitics, inflation, uncertainty, the accelerating opportunities and risks of (artificial intelligence) and advanced cyber threats all require investors to manage through a broad range of forces that are reshaping markets, operating models and the broader financial system," O'Hanley added. Price: 163.10, Change: -11.00, Percent Change: -6.32