State Street: 3 Key Takeaways for Long-Term Investors

State Street (STT) posted Q3 2026 per-share earnings of $3.69, up 33% year over year, while revenue climbed 13% to $4 billion. The headline: management guides for more than 500 basis points of positive operating leverage in 2026.

Assets under custody hit a record $59.2 trillion, the base that feeds the fee and servicing lines behind the quarter's growth.

Three drivers stand out in the report:

• ▸Wealth management expansion: State Street is extending services to registered investment advisors.
• ▸Alternative asset servicing: This business is growing at double-digit rates.
• ▸Net interest margin expansion: Higher margins contributed to the results.

Earnings growth of 33% outpacing revenue growth of 13% is the arithmetic of operating leverage at work. Our interpretation: the 500-basis-point guide implies management expects expenses to keep growing well below revenue, though the report does not break out the cost side.

The earnings print also matters for traders who hold STT's preferred shares, STTPG, and for those tracking financial-sector exposure through XLF.