State Street (STT Quick QuoteSTT - Free Report) is slated to report third-quarter 2026 results on Oct. 14, before market open. The company’s quarterly revenues and earnings are expected to have risen year over year.

In the second quarter, STT’s earnings outpaced the Zacks Consensus Estimate. Results were aided by growth in fee revenues and net interest income (NII). The company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances to record levels. However, higher expenses acted as a drag.

State Street has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering a surprise of 7.82%, on average.

Major Q3 Factors & Estimates for State Street

NII: STT’s NII is expected to have benefited from growth in interest-earning assets, improved balance-sheet positioning and disciplined deposit pricing in the third quarter. Higher investment portfolio yields and relatively stable funding costs are likely to have supported net interest margin performance.

The Zacks Consensus Estimate for State Street’s average interest-earning assets for the third quarter is pegged at $305.4 billion, indicating a 3.3% rise from the prior-year quarter. The consensus estimate for NII (on a fully taxable-equivalent basis) of $858 million suggests 19.8% year-over-year growth.

Fee Revenues: State Street’s fee revenues are expected to have benefited from higher average AUC/A and AUM, supported by favorable equity market performance and client inflows. Growth in asset balances, alongside continued demand for investment servicing and asset management solutions, is likely to have supported servicing and management fees.

The Zacks Consensus Estimate for management fees of $812 million indicates a 32.7% year-over-year increase. The consensus estimate for servicing fees is pegged at $1.52 billion, suggesting 12.1% growth. Securities finance revenues are projected to rise 4.3% to $144 million, supported by client borrowing activity and securities lending opportunities.

Meanwhile, foreign exchange (FX) trading services revenues are expected to have benefited from client transaction volumes and currency market activity. The consensus estimate for FX trading services income of $443 million indicates a 6.5% year-over-year increase. However, software and processing-related revenues may have been under pressure, with the consensus estimate for software services fees of $171 million suggesting a 24.7% decline.

Overall, the Zacks Consensus Estimate for total fee revenues of $3.20 billion indicates 12.9% year-over-year growth.

Expenses: Total expenses at State Street are expected to have increased in the third quarter due to higher information systems and communication costs, as well as spending on acquisitions, expansion efforts and franchise investments.

While the company has been taking steps to enhance operating efficiency, ongoing investments in growth initiatives, infrastructure and technology are likely to have exerted upward pressure on costs in the to-be-reported quarter.

Key Q3 Development for STT

In July, State Street signed an agreement to acquire Santander CACEIS Latam Securities Services, a joint venture (JV) between Santander Group and CACEIS, to expand its investment servicing footprint in Latin America. As of June 30, 2026, the JV had approximately $470 billion in AUC and $225 billion in AUA. The acquisition will strengthen State Street’s custody, foreign exchange, fund administration and other servicing capabilities across Brazil, Mexico and Colombia.

The financial terms remain undisclosed, while the transaction is expected to close in 2027, subject to regulatory approvals and customary conditions. State Street plans to retain the JV’s local workforce and leverage its regional expertise alongside its global servicing platform to enhance cross-border investment services and capitalize on growth opportunities in Latin America.

What the Zacks Model Unveils for State Street

Per our model, it cannot be conclusively predicted whether State Street will be able to beat the Zacks Consensus Estimate this time around. This is because the company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for State Street is 0.00%.

Zacks Rank: STT currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

State Street’s Q3 Earnings & Sales Estimates

The Zacks Consensus Estimate for State Street’s earnings of $3.65 per share has been revised marginally higher over the past seven days. The figure suggests a 31.3% rise from the year-ago quarter.

The consensus estimate for quarterly sales of $4.04 billion indicates a 14% year-over-year increase.

State Street’s Peers Worth a Look

Here are STT’s peers that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:

The Bank of New York Mellon Corporation (BNY Quick QuoteBNY - Free Report) is slated to report third-quarter 2026 results on Oct. 15. The company has a Zacks Rank #3 at present and an Earnings ESP of +0.18%.

Quarterly earnings estimates for BNY have been unchanged at $2.26 over the past week.

The Earnings ESP for The PNC Financial Services Group (PNC Quick QuotePNC - Free Report) is +0.80% and it carries a Zacks Rank of 3 at present. The company is slated to report third-quarter 2026 results on Oct. 15.

Over the past seven days, the Zacks Consensus Estimate for PNC Financial’s quarterly earnings has been revised lower to $4.97.