Revenue rose to $2.14 billion, an 8.4% year‑over‑year increase that exceeded the consensus estimate of $2.07 billion by $70 million. The lift was driven by stronger demand in Asset Servicing and Wealth Management, with trust‑fee growth of 7% and net‑interest income up 14% year‑over‑year.
GAAP earnings per share reached $2.42, beating the consensus of $2.37 by $0.05 (2.1%). Non‑GAAP EPS of $2.69 also surpassed expectations. The beat was largely a result of disciplined expense management and operating‑leverage gains, allowing the company to maintain margins despite modest fee‑growth pressure.
Segment performance highlighted a 9% rise in Asset Servicing revenue to $1.20 billion and a 6% increase in Wealth Management revenue to $0.80 billion. Asset‑management fees grew 5% to $0.50 billion. The shift toward higher‑margin fee‑based services contributed to the overall margin expansion.
Management reiterated its full‑year 2026 revenue guidance of $4.4 billion, unchanged from prior guidance, signaling confidence in continued growth. Chairman and CEO Michael O’Grady emphasized disciplined cost control and strategic investments in high‑return verticals as key to sustaining profitability.
Investors remained cautious, citing broader economic headwinds and interest‑rate uncertainty. Management noted the need to navigate potential rate hikes while sustaining fee growth, underscoring the company’s focus on resilience amid market volatility.
"Northern Trust delivered strong fourth‑quarter results, marking another year of successful execution of our One Northern Trust strategic priorities and positioning the company for continued performance in 2026," said Michael O’Grady, Chairman and CEO.
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