State Street has successfully expanded its gross margin to 67.4% in 2026Q1 from 56.9% in 2024Q3, though operating margins remain highly variable, fluctuating between 4.1% and 19.2% over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 22.75B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 14.39B | 13.88B | 12.84B | 11.9B | 12.11B | 12.06B | 11.61B | 11.75B | 12.12B | 11.26B | 10.2B | 10.35B | 10.26B | 9.86B | 9.65B | 9.59B | 8.93B | 8.49B | 9.89B | 8.34B | 6.31B | 5.46B | 4.95B | 4.73B | 4.4B | 3.8B | 3.55B | 3.02B | 2.73B | 2.3B | 1.84B |
| Gross Margin % | 63.27% | 61.36% | 58.45% | 64.79% | 88.56% | 100.25% | 96.16% | 89.45% | 92.33% | 94.89% | 95.88% | 96.17% | 96.23% | 95.94% | 95.33% | 93.99% | 91.89% | 90.7% | 81.61% | 70.54% | 66.26% | 72.95% | 84.47% | 86.66% | 81.48% | 67.36% | 59.96% | 64.41% | 64.36% | 67.04% | 67.21% |
| Gross Profit Growth % | - | 8.11% | 7.94% | -1.7% | 0.37% | 3.91% | -1.19% | -3.05% | 7.56% | 10.46% | -1.46% | 0.82% | 4.12% | 2.13% | 0.6% | 7.46% | 5.15% | -14.17% | 18.68% | 32.09% | 15.65% | 10.22% | 4.58% | 7.69% | 15.78% | 6.96% | 17.47% | 10.9% | 18.58% | 24.55% | 19.77% |
| Operating Expenses | 10.52B | 10.15B | 9.45B | 9.58B | 8.78B | 8.89B | 8.71B | 9.03B | 9.02B | 8.27B | 8.08B | 8.05B | 7.83B | 7.19B | 6.89B | 7.06B | 6.84B | 5.97B | 7.05B | 6.43B | 4.54B | 4.03B | 3.76B | 3.62B | 2.84B | 2.87B | 2.64B | 2.05B | 2.07B | 1.73B | 1.4B |
| OpEx % of Revenue | - | 44.87% | 43% | 52.18% | 64.22% | 73.89% | 72.14% | 68.8% | 68.7% | 69.66% | 75.95% | 74.81% | 73.38% | 70% | 68.01% | 69.15% | 70.42% | 63.73% | 58.17% | 54.43% | 47.66% | 53.81% | 64.14% | 66.3% | 52.66% | 50.86% | 44.65% | 43.78% | 48.84% | 50.58% | 50.93% |
| Selling, General & Admin | 5.37B | 5.26B | 4.85B | 4.7B | 4.48B | 4.66B | 4.45B | 4.58B | 4.91B | 4.48B | 4.5B | 4.25B | 4.14B | 3.88B | 3.84B | 3.82B | 3.52B | 3.04B | 3.84B | 3.26B | 2.65B | 2.23B | 1.96B | 1.73B | 1.67B | 1.72B | 1.58B | 1.37B | 1.24B | 1.02B | 809M |
| SG&A % of Revenue | - | 23.24% | 22.09% | 25.61% | 32.75% | 38.73% | 36.83% | 34.85% | 37.44% | 37.75% | 42.29% | 39.52% | 38.81% | 37.76% | 37.9% | 37.43% | 36.2% | 32.44% | 31.69% | 27.55% | 27.84% | 29.83% | 33.39% | 31.69% | 30.95% | 30.51% | 26.75% | 29.11% | 29.17% | 29.78% | 29.47% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 3.88B | 3.73B | 3.4B | 2.32B | 3.33B | 3.17B | 2.9B | 2.71B | 3.1B | 3B | 2.12B | 2.3B | 2.44B | 2.67B | 2.77B | 2.54B | 2.09B | 2.52B | 2.84B | 1.9B | 1.77B | 1.43B | 1.19B | 1.11B | 1.55B | 930M | 906M | 968M | 657M | 564M | 447M |
| Operating Margin % | 17.05% | 16.49% | 15.45% | 12.61% | 24.34% | 26.36% | 24.02% | 20.65% | 23.63% | 25.23% | 19.93% | 21.36% | 22.85% | 25.95% | 27.32% | 24.85% | 21.47% | 26.97% | 23.45% | 16.1% | 18.59% | 19.14% | 20.34% | 20.36% | 28.82% | 16.5% | 15.3% | 20.63% | 15.52% | 16.45% | 16.28% |
| Operating Income Growth % | - | 9.9% | 46.59% | -30.39% | 4.92% | 9.38% | 6.9% | -12.54% | 3.54% | 41.27% | -7.75% | -5.7% | -8.59% | -3.62% | 9.07% | 21.57% | -17.39% | -11.15% | 49.34% | 7.45% | 23.67% | 20.13% | 7.19% | -28.49% | 67.2% | 2.65% | -6.4% | 47.34% | 16.49% | 26.17% | 21.96% |
| EBITDA | 4.56B | 4.29B | 4B | 3.2B | 4.48B | 4.73B | 4.41B | 4.05B | 4.3B | 4.08B | 3.05B | 3.1B | 3.14B | 3.34B | 3.25B | 2.95B | 1.86B | 2.2B | 3.21B | 2.03B | 2.16B | 1.93B | 1.83B | 1.81B | 2.24B | 1.33B | 1.28B | 1.29B | 985M | 819M | 660M |
| EBITDA Margin % | 20.05% | 18.94% | 18.2% | 17.41% | 32.8% | 39.3% | 36.53% | 30.84% | 32.8% | 34.37% | 28.67% | 28.8% | 29.4% | 32.52% | 32.15% | 28.94% | 19.1% | 23.54% | 26.49% | 17.2% | 22.64% | 25.82% | 31.24% | 33.19% | 41.58% | 23.56% | 21.62% | 27.6% | 23.26% | 23.89% | 24.04% |
| EBITDA Growth % | 10.41% | 7.12% | 25.08% | -28.66% | -5.18% | 7.24% | 8.89% | -5.92% | 5.49% | 33.81% | -1.61% | -1.18% | -6.14% | 2.64% | 10.19% | 59.16% | -15.79% | -31.36% | 57.94% | -5.71% | 11.65% | 5.46% | 0.99% | -19.17% | 68.9% | 3.75% | -1.16% | 31.47% | 20.27% | 24.09% | 32.45% |
| D&A (Non-Cash Add-back) | 683M | 554M | 605M | 882M | 1.16B | 1.56B | 1.51B | 1.34B | 1.2B | 1.08B | 929M | 801M | 699M | 675M | 489M | 418M | -230M | -321M | 369M | 130M | 385M | 499M | 639M | 701M | 688M | 398M | 374M | 327M | 328M | 255M | 213M |
| EBIT | 3.88B | 3.73B | 3.4B | 2.32B | 3.33B | 3.17B | 2.9B | 2.71B | 3.1B | 3B | 2.12B | 2.3B | 2.44B | 2.67B | 2.77B | 2.54B | 2.09B | 2.52B | 2.84B | 1.9B | 1.77B | 1.43B | 1.19B | 1.11B | 1.55B | 930M | 906M | 968M | 657M | 564M | 447M |
| Net Interest Income | 3.08B | 2.96B | 2.92B | 2.76B | 2.54B | 1.91B | 2.2B | 2.57B | 2.67B | 2.3B | 2.08B | 2.09B | 2.26B | 2.3B | 2.54B | 2.33B | 2.7B | 2.56B | 2.65B | 1.73B | 1.11B | 907M | 859M | 810M | 979M | 1.02B | 894M | 781M | 745M | 641M | 551M |
| Interest Income | 11.37B | 11.64B | 11.98B | 9.18B | 4.09B | 1.91B | 2.58B | 3.94B | 3.66B | 2.91B | 2.51B | 2.49B | 2.65B | 2.71B | 3.01B | 2.95B | 3.46B | 3.29B | 4.88B | 5.21B | 4.32B | 2.93B | 1.79B | 1.54B | 1.97B | 2.85B | 3.26B | 2.44B | 2.24B | 1.75B | 1.44B |
| Interest Expense | 8.29B | 8.68B | 9.05B | 6.42B | 1.54B | 3M | 375M | 1.38B | 991M | 604M | 428M | 400M | 392M | 411M | 476M | 613M | 763M | 722M | 2.23B | 3.48B | 3.21B | 2.02B | 928M | 729M | 995M | 1.83B | 2.36B | 1.66B | 1.49B | 1.11B | 892M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 3.88B | 3.73B | 3.4B | 2.32B | 3.33B | 3.17B | 2.9B | 2.71B | 3.1B | 3B | 2.12B | 2.3B | 2.44B | 2.67B | 2.77B | 2.54B | 2.09B | 2.52B | 2.84B | 1.9B | 1.77B | 1.43B | 1.19B | 1.11B | 1.55B | 930M | 906M | 968M | 657M | 564M | 447M |
| Pretax Margin % | 17.05% | 16.49% | 15.45% | 12.61% | 24.34% | 26.36% | 24.02% | 20.65% | 23.63% | 25.23% | 19.93% | 21.36% | 22.85% | 25.95% | 27.32% | 24.85% | 21.47% | 26.97% | 23.45% | 16.1% | 18.59% | 19.14% | 20.34% | 20.36% | 28.82% | 16.5% | 15.3% | 20.63% | 15.52% | 16.45% | 16.28% |
| Income Tax | 813M | 786M | 708M | 372M | 553M | 478M | 479M | 470M | 508M | 839M | -22M | 318M | 415M | 616M | 705M | 616M | 530M | 722M | 1.03B | 642M | 675M | 487M | 394M | 390M | 540M | 302M | 311M | 349M | 221M | 184M | 154M |
| Effective Tax Rate % | 20.96% | 21.07% | 20.85% | 16.06% | 16.62% | 15.07% | 16.52% | 17.33% | 16.38% | 28.01% | -1.04% | 13.84% | 17.03% | 23.11% | 25.49% | 24.29% | 25.41% | 28.59% | 36.28% | 33.74% | 38.11% | 34.01% | 33.05% | 35.07% | 34.73% | 32.47% | 34.33% | 36.05% | 33.64% | 32.62% | 34.45% |
| Net Income | 3.06B | 2.94B | 2.69B | 1.94B | 2.77B | 2.69B | 2.42B | 2.24B | 2.59B | 2.16B | 2.14B | 1.98B | 2.02B | 2.05B | 2.06B | 1.92B | 1.56B | -1.88B | 1.81B | 1.26B | 1.11B | 838M | 798M | 722M | 1.01B | 628M | 595M | 619M | 436M | 380M | 293M |
| Net Margin % | 13.47% | 13.01% | 12.23% | 10.58% | 20.29% | 22.39% | 20.05% | 17.07% | 19.76% | 18.16% | 20.15% | 18.4% | 18.96% | 19.95% | 20.36% | 18.81% | 16.01% | -20.09% | 14.94% | 10.67% | 11.61% | 11.2% | 13.62% | 13.22% | 18.81% | 11.14% | 10.05% | 13.19% | 10.3% | 11.09% | 10.67% |
| Net Income Growth % | 6.87% | 9.6% | 38.22% | -29.92% | 3.01% | 11.28% | 7.94% | -13.54% | 20.27% | 0.61% | 8.23% | -2.08% | -1.37% | -0.53% | 7.34% | 23.39% | 182.72% | -203.87% | 43.62% | 14.01% | 31.98% | 5.01% | 10.53% | -28.87% | 61.62% | 5.55% | -3.88% | 41.97% | 14.74% | 29.69% | 18.58% |
| Net Income (Continuing) | 3.06B | 2.94B | 2.69B | 1.94B | 2.77B | 2.69B | 2.42B | 2.24B | 2.59B | 2.16B | 2.14B | 1.98B | 2.02B | 2.05B | 2.06B | 1.92B | 1.56B | 1.8B | 1.81B | 1.26B | 1.1B | 945M | 798M | 722M | 1.01B | 628M | 595M | 619M | 436M | 380M | 293M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10M | -107M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.84 | 9.40 | 8.21 | 5.58 | 7.19 | 7.19 | 6.32 | 5.38 | 6.40 | 5.24 | 4.97 | 4.47 | 4.69 | 4.62 | 4.20 | 3.79 | 3.09 | -4.31 | 4.30 | 3.45 | 3.29 | 2.50 | 2.35 | 2.15 | 3.10 | 1.90 | 1.82 | 1.89 | 1.33 | 1.16 | 0.89 |
| EPS Growth % | 10.55% | 14.49% | 47.13% | -22.39% | 0% | 13.77% | 17.47% | -15.94% | 22.14% | 5.43% | 11.19% | -4.69% | 1.52% | 10% | 10.82% | 22.65% | 171.69% | -200.23% | 24.64% | 4.86% | 31.6% | 6.38% | 9.3% | -30.65% | 63.16% | 4.4% | -3.7% | 42.11% | 14.66% | 30.34% | 20.27% |
| EPS (Basic) | - | 9.55 | 8.33 | 5.65 | 7.28 | 7.30 | 6.40 | 5.43 | 6.48 | 5.32 | 5.03 | 4.53 | 4.77 | 4.71 | 4.25 | 3.82 | 3.11 | -4.13 | 4.32 | 3.49 | 3.34 | 2.53 | 2.38 | 2.18 | 3.14 | 1.94 | 1.85 | 1.93 | 1.36 | 1.19 | 0.90 |
| Diluted Shares Outstanding | 282.87M | 289.02M | 302.23M | 326.57M | 370.11M | 357.96M | 357.11M | 373.67M | 376.48M | 380.21M | 396.09M | 413.64M | 432.01M | 455.15M | 481.13M | 496.07M | 497.92M | 474M | 416.1M | 365.49M | 335.73M | 334.64M | 339.61M | 335.33M | 327.48M | 330.49M | 328.09M | 327.5M | 327.85M | 327.58M | 329.24M |
| Basic Shares Outstanding | 278.43M | 284.55M | 297.88M | 322.34M | 365.21M | 352.56M | 352.87M | 369.91M | 371.98M | 374.79M | 391.49M | 407.86M | 424.22M | 446.25M | 474.46M | 492.6M | 495.39M | 470.6M | 413.18M | 360.68M | 331.35M | 330.36M | 334.61M | 331.69M | 323.52M | 325.03M | 321.68M | 321.32M | 321.87M | 321.32M | 326.53M |
| Dividend Payout Ratio | - | 30.36% | 38.44% | 49.9% | 35.04% | 27.92% | 36.74% | 41.48% | 31.93% | 35.62% | 33.74% | 33.08% | 26.66% | 23.71% | 22.46% | 15.36% | 1.29% | - | 22.03% | 23.87% | 23.42% | 27.68% | 26.19% | 24.79% | 14.68% | 20.22% | 17.82% | 15.02% | 19.27% | 18.16% | 20.82% |
Net Interest Margin Compression
According to recent quarterly filings, State Street's gross margin reached 67.4% in 2026Q1, reflecting a notable improvement from the 56.9% observed in 2024Q3, which suggests that the firm is successfully leveraging its integrated technology platform to drive higher unit economics across its core servicing business.
The expansion in gross margins appears to indicate that the company is effectively scaling its proprietary Alpha platform, allowing for more efficient processing of institutional assets. Investors should monitor whether this trend persists as the firm navigates potential fee compression in its passive ETF suite.
As reported in financial statements, State Street's operating margin fluctuated significantly from 4.1% in 2023Q4 to 19.2% in 2025Q3, highlighting the inherent difficulty in achieving consistent operating leverage within a business model heavily burdened by high fixed technology costs and ongoing regulatory compliance requirements.
The volatility in operating margins suggests that the company's cost structure remains sensitive to non-recurring expenses and the timing of large-scale client onboarding. While the recent improvement to 17.3% in 2026Q1 is encouraging, it remains unclear if this represents a permanent shift toward greater administrative efficiency.
Based on reported figures, State Street's net income was impacted by a $286 million stock-based compensation charge in 2025Q4, which temporarily depressed earnings per share to $2.41, suggesting that non-operating items continue to create noise in the company's underlying profitability metrics for institutional investors.
The absence of stock-based compensation in other quarters implies that these charges are episodic rather than structural, yet they complicate the assessment of core earnings power. Analysts should remain cautious regarding how these periodic adjustments influence the perceived stability of the company's bottom-line performance.
Data from the past ten quarters indicates that State Street's net income remains highly susceptible to market-driven revenue volatility, as evidenced by the sharp decline in net margin to 4.2% in 2023Q4, which may suggest that the firm's defensive moat is less robust than management claims.
Short-sellers might focus on the company's reliance on interest-rate-sensitive revenue streams, which could face significant pressure if central bank policies shift toward a lower-rate environment. This vulnerability warrants further investigation into whether the Alpha platform can truly decouple earnings from broader market and interest rate cycles.
Quick answers to the most common questions about buying STT stock.
State Street Corporation (STT) is profitable, generating $2.94B in net income for the fiscal year ending 2025 with a net profit margin of 13.0%.
State Street Corporation (STT) reported an operating income of $3.73B, resulting in an operating profit margin of 16.5%. This margin reflects the operational efficiency of the business before interest and taxes.
State Street Corporation (STT) generated $13.88B in gross profit for the year, representing a gross profit margin of 61.4%. This demonstrates the company's core pricing power and production efficiency.