State Street Corporation (STT) AI Stock Analysis

State Street Corporation provides financial products and services primarily to institutional investors. Its offerings span investment servicing, including custody, product accounting, daily pricing, administration, and master trust services. The company also delivers financial data management solutions, securities finance, securities lending, and foreign exchange capabilities. Through its portfolio management activities, State Street offers core and enhanced indexing, multi-asset solutions, active quantitative and fundamental capabilities, and alternative investments. It also provides risk analytics, trading services, and post-trade settlement services. Its client base includes mutual funds, collective investment funds, retirement plans, insurance companies, foundations, endowments, and investment managers.

State Street grew revenue at a 5-year CAGR of 13.4% from FY2020 to FY2025. Annual revenue expanded from $12.03B in FY2021 to $13.67B in FY2022, $18.37B in FY2023, $21.97B in FY2024, and $22.63B in FY2025, which marked 3.0% annual growth. Net margin was 13.0% in FY2025, yielding net income of $2.94B and EPS of $10.32. Operating margin rose to 16.5% in FY2025 compared to 15.5% in FY2024. In the latest quarter ending September 30, 2026, quarterly revenue increased 13.3% year-over-year, while quarterly earnings grew 32.7%. Trailing twelve-month revenue totaled $15.50B with an operating margin of 34.6% and EPS of $12.24.

As of September 30, 2026, State Street held $78.80B in cash and short-term investments and total debt of $26.04B, resulting in net cash of $52.77B. Total assets stood at $403.34B against shareholders' equity of $28.71B, reflecting a debt-to-equity ratio of 0.91 and a current ratio of 92.69. For FY2025, operating cash flow was $5.35B and free cash flow was $4.29B. Capital allocation during FY2025 included $1.05B in capital expenditures, $1.31B in share buybacks, and $1.12B in dividends, contributing to a -24.9% share count change over five years.

State Street trades at a trailing P/E of 13.5x and a forward P/E of 11.9x, both below the S&P 500 Financial Services medians of 14.2x and 12.6x. Its price-to-sales ratio is 2.9x, compared to the peer median of 3.1x. The company has a market capitalization of $45.52B, a PEG ratio of 0.67, and a price-to-book ratio of 2.0x. Over the past year, the stock returned 50.2%, outpacing the S&P 500 return of 16.8%. Over five years, STT returned 109.1% versus 83.0% for the S&P 500.

State Street pays an annual forward dividend of $3.68 per share, representing a dividend yield of 2.22% distributed quarterly. The dividend payout ratio stands at 21.6%. The company has paid consecutive dividends for 43 years, delivering an annualized 5-year dividend growth rate of 8.4%. Its last ex-dividend date was October 1, 2026.

Wall Street analysts cover State Street with 8 Strong Buy, 2 Buy, and 7 Hold ratings, with no Sell or Strong Sell ratings. The mean price target of $193.30 represents 16.6% upside from the last close of $165.72. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $13.80, up 34.0%, on revenue of $15.92B. For the following fiscal year, 15 analysts project EPS of $15.55 on revenue of $16.79B. STT has beaten EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of State Street Corporation (STT). 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.

Related: STT income statement, STT balance sheet, STT key metrics, STT analyst forecast, STT chart. See the STT stock overview for the latest quote and news.