State Street (STT) Expected to Report 9.2% EPS Growth in Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy STT?
Source: seekingalpha
- Earnings Expectations: State Street is expected to report an EPS of $2.84 on January 16, reflecting a 9.2% year-over-year growth, indicating the company's stable performance in strong financial markets.
- Revenue Forecast: The revenue estimate for Q4 stands at $3.62 billion, representing a 6.2% year-over-year increase, showcasing the company's ongoing growth potential despite economic uncertainties.
- Historical Performance: Over the past two years, State Street has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating strong financial management and boosting investor confidence.
- Estimate Revisions: In the last three months, EPS estimates have seen 7 upward revisions and 4 downward revisions, while revenue estimates have experienced 9 upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance.
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Analyst Views on STT
Wall Street analysts forecast STT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STT is 142.27 USD with a low forecast of 128.00 USD and a high forecast of 168.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
4 Hold
1 Sell
Moderate Buy
Current: 128.710
Low
128.00
Averages
142.27
High
168.00
Current: 128.710
Low
128.00
Averages
142.27
High
168.00
About STT
State Street Corporation is a financial holding company. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors. It operates through two lines of business: Investment Servicing and Investment Management. Its Investment Servicing line of business provides a range of services and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, investment managers, foundations and endowments worldwide. Through State Street Investment Services, State Street Markets and State Street Alpha, it offers a range of solutions, including transaction management, derivatives, collateral services, and others. Investment Management line of business provides a range of investment management solutions and products through State Street Investment Management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Stability Expectations: According to the CME FedWatch survey, the market widely anticipates that rates will remain unchanged until the June FOMC meeting, providing stability that generally favors technology and growth stocks.
- Financial Stocks Rally: Following the FOMC decision, State Street and BNY Mellon stocks rose approximately 2.5% and 2%, respectively, reflecting market optimism about sustained net interest income growth for these leading custody banks in the coming months.
- Analysts Favorable Outlook: Analysts have rated both State Street and BNY Mellon as “buys,” with price targets of $145 and $136 per share, suggesting upside potentials of 11% and 13%, respectively, highlighting their stable growth prospects in a high-interest-rate environment.
See More
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- FOMC Policy Update: The Federal Open Market Committee decided to hold the federal funds rate between 3.50% and 3.75% this week, marking the first pause after three consecutive cuts, reflecting a cautious stance amid economic expansion, stable unemployment, and elevated inflation.
- Positive Bank Stock Reaction: Following the FOMC decision, State Street's stock rose approximately 2.5% to around $131 per share, while BNY Mellon shares increased about 2% to $121 per share, indicating market optimism regarding the profitability of these major custody banks in a stable rate environment.
- Revenue Source Analysis: BNY Mellon and State Street manage $59.3 trillion and $53.8 trillion in assets, respectively, with the majority of their revenue derived from service fees, generating approximately $5.2 billion and $3.7 billion in fees in Q4, showcasing their stability and profitability in a high-interest-rate environment.
- Future Growth Potential: Analysts rate both stocks as buys, with State Street's price target at $145 per share, suggesting an 11% upside, while BNY Mellon's target is $136 per share, indicating a 13% return, reflecting expectations for continued higher net interest income in the coming months.
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- Hedge Fund Accumulation: Billionaire hedge fund managers Israel Englander and Ken Griffin increased their holdings in the SPDR Gold ETF by 104,900 shares and 255,100 shares respectively in Q3 2025, with Griffin also purchasing call options, indicating their confidence in the gold market and strategic portfolio adjustments.
- Gold Price Dynamics: Gold's low correlation with stocks and bonds makes it an ideal choice for investors during periods of global tension and economic uncertainty, as historical data shows that gold can provide effective hedging during significant market drawdowns.
- Future Price Expectations: Several financial institutions project gold prices to reach between $5,300 and $6,000 per ounce by 2026, and despite mixed opinions on the geopolitical and economic turmoil caused by Trump's policies, the overall trend remains bullish, suggesting investors should consider increasing their exposure to gold ETFs to mitigate potential risks.
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