Correction, 18 September 2026: an earlier version of this post described April 17, 2026 as the end of the quarter. It is the date the results were reported.
What changed
$STT (State Street Corporation) reported results on April 17, 2026. EPS came in at $2.84, up from $2.04 in the same period a year earlier — a 39.2% year-over-year increase. That profit expansion happened against a backdrop of softer top-line performance: quarterly revenue declined 2.8% year over year.
We do not have guidance commentary from this report, so the forward picture is limited to what the existing fundamentals suggest.
Get the ACCE weekly digest
Index returns, picks recap, score movers - every Sunday. No fluff.
What it means
The gap between earnings growth and revenue growth is the headline story here. State Street grew EPS by more than a third while revenue contracted, which points to meaningful margin improvement or cost discipline rather than volume-driven profit gains. The net margin currently sits at 21.3%, and the earnings quality flag is marked strong in our data — both consistent with a company squeezing more from each dollar of revenue rather than relying on top-line expansion.
The trailing P/E of 18.1 sits above the forward P/E of 14.6, which reflects the market pricing in continued earnings growth. Our six-model fair value estimate lands at $193.86, roughly 4.6% above the current price of $185.32 as of July 15, 2026. That is a modest gap, not a screaming discount, but it does suggest the stock is not obviously overpriced at current levels.
$STT's ACCE score is 61 out of 100. The breakdown tells a specific story: Momentum scores 97, Quality scores 76, Value scores 63, and Growth scores just 7. That Growth score lines up with the revenue decline — the business is not expanding its top line right now. But the Quality and Momentum readings are hard to ignore. An FCF yield of 8.6% and ROE of 11.3% back up the Quality score, and the stock's one-year return of 81.7% explains the Momentum reading.
The analyst consensus target sits at $180.96, which is actually below the current price of $185.32 — meaning the average analyst on the street sees the stock as slightly ahead of fair value even as our six-model composite points modestly higher.
The 1.8% dividend yield adds a small income component for holders, though it is not the primary draw at this valuation.
The core tension in this print: earnings are growing fast, the business generates strong cash flow, and momentum has been exceptional over the past year. The offset is a shrinking revenue base and a Growth score near the bottom of the range. Whether the margin story has more room to run without revenue recovery is the question this report leaves open.
See the full picture, free
ACCE scores thousands of stocks across six valuation models, with fair value, conviction and the full thesis on every name. Start free, no card required.
