The Bank of New York Mellon Corporation (BNY) AI Stock Analysis

The Bank of New York Mellon Corporation provides financial products and services across the United States and internationally. It operates through several segments: Securities Services, Market and Wealth Services, Investment and Wealth Management, and Other. The Securities Services segment delivers custody, trust, depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, and prime brokerage services. The Market and Wealth Services segment provides clearing and custody, trading, technology data management, and cash management solutions like payments and trade finance. The Investment and Wealth Management segment offers investment management strategies, wealth and estate planning, and private banking to individual and institutional clients.

From FY2020 to FY2025, BNY delivered a 5-year revenue CAGR of 19.5%, growing annual revenue from $15.86B in FY2021 to $40.44B in FY2025. Over the same period, net income increased from $3.76B in FY2021 to $5.55B in FY2025, with EPS climbing from $4.18 to $7.42. Annual net margin stood at 13.7% in FY2025, improving from 9.8% in FY2023. Over the trailing twelve months, revenue reached $22.00B, supporting an operating margin of 39.1% and diluted EPS of $9.03. In the latest quarter ended September 30, 2026, revenue increased 11.5% year-over-year, while quarterly earnings expanded by 24.5%.

As of September 30, 2026, BNY held $349.98B in cash and short-term investments against total debt of $66.26B, yielding a net cash position of $283.71B. Total assets stood at $493.98B with shareholders' equity of $43.58B, resulting in a debt-to-equity ratio of 1.52 and a current ratio of 0.87. In FY2025, operating cash flow was $6.73B and free cash flow reached $5.18B. Cash was deployed toward capital expenditures of $1.55B, share buybacks of $4.54B, and dividends paid of $1.69B.

At a closing price of $143.30 on October 16, 2026, BNY traded at a trailing P/E of 15.9x and a forward P/E of 15.0x, both above the median of its S&P 500 Financial Services peers (14.2x trailing and 12.2x forward). Its price-to-sales multiple of 4.4x also exceeds the peer median of 3.1x, while its PEG ratio sits at 1.14. Over the past year, BNY gained 36.6%, outperforming the S&P 500 return of 16.8%. Over a 5-year span, BNY returned 187.1% compared to 83.0% for the S&P 500.

BNY pays a quarterly dividend with an annualized forward rate of $2.22 per share, yielding 1.55%. The dividend payout ratio is 21.1%, supported by 42 consecutive years of dividend payments. Over the past five years, the dividend has grown at an annualized rate of 10.0%, with the most recent ex-dividend date on October 26, 2026.

Wall Street analysts maintain 6 Strong Buy, 3 Buy, and 8 Hold ratings on BNY, with 0 Sell ratings. The mean price target of $163.53 suggests an upside of 14.1% over the last close of $143.30. For the fiscal year ending December 31, 2026, analysts estimate EPS of $9.44, representing 25.8% growth, on revenue of $22.46B. The company has beaten EPS expectations in each of the last 4 quarters.

This page is an AI-written research summary of The Bank of New York Mellon Corporation (BNY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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