Quick Take on 2Q26 Earnings: Result: Meeting the Moment with Momentum

Research evidence excerpt

Quick Take on 2Q26 Earnings: Result: Meeting the Moment with Momentum

Idea

July 17, 2026 01:07 AM GMT

Morgan Stanley & Co. LLCMState Street Corporation | North America Manan Gosalia

Equity Analyst

Quick Take on 2Q26 Earnings Manan.Gosalia@morganstanley.comConnell J Schmitz +1 212 761-4092

Research Associate

Connell.Schmitz@morganstanley.com +1 212 761-6252

Result: Meeting the Moment

State Street Corporation (STT.N, STT UN)

Large Cap Banks | United States of Americawith Momentum

Stock Rating Overweight

Industry View Attractive

What’s Changed Price target $195.00

State Street Corporation (STT.N) From To Shr price, close (Jul 16, 2026) $185.66

Mkt cap, curr (mm) $51,909

Price Target $183.00 $195.00

52-Week Range $192.25-102.85

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

Reaction to earnings EPS ($)** 10.30 13.84 15.60 17.88

Prior EPS ($)** - 13.31 15.24 17.75

Strengthens our thesis Modest upside Modest revision higher P/E 12.5 13.4 11.9 10.4

Impact to our thesis Financial results versus consensus Direction of next 12-month EPS ($)§ 10.17 13.03 14.53 16.57

consensus EPS Div yld (%) 2.5 1.9 2.1 2.2

Source: Company data, Morgan Stanley Research

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

STT met the moment, delivering both the long-anticipated **§ ==ConsensusBased on consensusdata is providedmethodologyby Refinitiv Estimates

medium-targets (that were in line with our expectations) and a e = Morgan Stanley Research estimates Quarterly EPS ($)

beat-and-raise quarter with clear momentum; however, muted 2026e 2026e 2027e 2027e

Quarter 2025 Prior Current Prior Current

stock reaction (-0.5%) reflects elevated expectations. We remain Q1 2.04 - 2.84a - -

OW as STT executes on these targets. Q2Q3 2.532.78 3.50- 3.65a3.58 -- --