Financial services giant State Street (NYSE: STT) announced better-than-expected revenue in Q2 CY2026, with sales up 16.7% year on year to $4.05 billion. Its non-GAAP profit of $3.65 per share was 9.2% above analysts’ consensus estimates.

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Company Overview

Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE: STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, State Street grew its revenue at a tepid 5.3% compounded annual growth rate. This was below our standard for the financials sector and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. State Street’s annualized revenue growth of 10.4% over the last two years is above its five-year trend, suggesting some bright spots. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, State Street reported year-on-year revenue growth of 16.7%, and its $4.05 billion of revenue exceeded Wall Street’s estimates by 3.8%.

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Assets Under Management (AUM)

Assets Under Management (AUM) is the cornerstone of a financial firm’s investment division, representing all client capital under its stewardship. Management fees on this AUM create reliable, recurring revenue that maintains stability even when investment performance struggles, though prolonged poor returns can eventually affect asset retention and growth.

State Street’s AUM has grown at an annual rate of 10.3% over the last five years, slightly better than the broader financials industry and faster than its total revenue. When analyzing State Street’s AUM over the last two years, we can see that growth accelerated to 18.1% annually. Fundraising or short-term investment performance was a net contributor for the company over this shorter period since assets grew faster than total revenue. Keep in mind that asset growth can be erratic and seasonal, so we don’t rely on it too heavily for our business quality analysis.

State Street’s AUM punched in at $6.28 trillion this quarter, beating analysts’ expectations by 7.8%. This print was 22.7% higher than the same quarter last year.

Key Takeaways from State Street’s Q2 Results

We were impressed by how significantly State Street blew past analysts’ AUM expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The market seemed to be hoping for more, and the stock traded down 1.3% to $184.16 immediately following the results.

So do we think State Street is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).