On Friday, State Street Corporation (NYSE:STT) reported stronger-than-expected first-quarter results.

CEO Ron O'Hanley said, "We delivered record quarterly fee revenue, net interest income, and total revenue, generating meaningful year-over-year positive operating leverage and pretax margin expansion, excluding notable items. In a dynamic operating environment, the momentum across Investment Services, Investment Management, and Markets underscores the strength of our franchise."

Earnings Snapshot

The company posted adjusted earnings of $2.84 per share, topping analysts' estimates of $2.63. Revenue increased 16% year over year to $3.796 billion, exceeding the Street's expectation of $3.658 billion.

State Street benefited from broad-based fee growth and higher net interest income.

RBC Capital: ‘A Blockbuster Quarter’

Following this, several analysts boosted the price forecast for the company.

RBC Capital analyst Gerard Cassidy maintained State Street with a Sector Perform and raised the price forecast from $135 to $155.

The analyst writes that the company continues to win new mandates for its products and services.

The company’s business model also delivers strong profitability as evidenced by the 20% ROTCE achieved in the first quarter of FY26, adds the analyst.

Cassidy writes that over the next 12 months, the company appears well-positioned with a strong pipeline of new business and strong capital levels.

Hence, the analyst expects capital return activity to be strong in 2026 and 2027.

The analyst notes that STT now anticipates fee revenue to climb by 7%-9% (up from the previous outlook of 4%-6%) and net interest income (NII) of 8%-10% (up from an initial low single-digit guidance).

Apart from this, other analysts’ price forecasts for State Street are as follows:

  • Truist Securities analyst David Smith maintained State Street with a Hold and raised the price forecast from $136 to $150.
  • Keefe, Bruyette & Woods analyst David Konrad maintained the stock with an Outperform rating and raised the price forecast from $157 to $175.
  • Morgan Stanley analyst Betsy Graseck maintained the stock with an Overweight rating and boosted the price forecast from $155 to $166.

Price Action: STT shares are up 2.46% at $149.01 at the last check on Monday.

Photo via Shutterstock