BNY Delivers +24% EPS Growth in Q3 2026 with Solid Revenue Beat
Key Takeaways
- BNY reported third quarter 2026 diluted earnings per share (EPS) of $2.34, up 24% year over year, with adjusted EPS of $2.37, also up 24%.
- Total revenue rose 12% year over year to $5.68 billion, ahead of the consensus estimate of roughly $5.56 billion.
- Fee revenue climbed 12% to $4.08 billion, while net interest income (NII, or earnings from lending and investing) increased 15% to $1.42 billion.
- Assets under custody and/or administration (AUC/A) reached $63.4 trillion, up 10% year over year, while assets under management (AUM) rose 2% to $2.2 trillion.
- Management raised its full-year 2026 outlook, now expecting nearly 500 basis points of positive operating leverage.
- Despite the earnings beat, shares slipped modestly in early trading as investors weighed rising expenses.
Why These Results Matter
BNY's third quarter results provide a useful snapshot of conditions in global capital markets and the custody and asset-servicing sector. As one of the largest financial services firms, its revenue tracks closely with client activity, market levels, and interest rates. The quarter unfolded against a backdrop of firm equity markets and steady client demand that lifted fee income across its businesses. For investors, the report is notable because it shows whether BNY can maintain double-digit growth while keeping costs in check and whether momentum in ETF servicing and wealth solutions can offset softer areas such as investment management fees and deposit margin pressure.
Breaking Down the Quarter
BNY posted third quarter 2026 revenue of $5.68 billion, up 11.7% year over year and above the consensus estimate of $5.56 billion. Diluted EPS reached $2.34 on a GAAP basis, up 24% from the prior-year period, while adjusted EPS of $2.37 exceeded the consensus estimate of $2.26. Net income attributable to common shareholders rose 20% to $1.61 billion.
Fee revenue increased 12% to $4.08 billion, supported by a 15% rise in investment services fees from net new business, higher client activity, and stronger market values. Net interest income grew 15% to $1.42 billion, aided by reinvesting securities at higher yields and balance sheet growth, partly offset by deposit margin compression. Total non-interest expenses rose about 8% to $3.49 billion, reflecting revenue-related costs and ongoing investments. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Key operating metrics showed broad strength. AUC/A reached $63.4 trillion, up 10% year over year, while AUM increased 2% to $2.2 trillion. The pre-tax margin expanded to 39%, and return on tangible common equity reached 29%. BNY's Common Equity Tier 1 capital ratio stood at 10.9%, and the company returned about $1.4 billion to common shareholders through $937 million in buybacks and $436 million in dividends.
Market Reaction and Outlook
BNY's headline results topped Wall Street expectations, yet the stock slipped roughly 1% in early trading after the announcement. That measured response reflects a common pattern for the company: solid operational performance tempered by concerns about rising expenses and guidance that now incorporates higher cost growth. While fee and net interest income momentum was robust, investors focused on the higher full-year expense outlook and softer investment management fee growth. Overall sentiment stayed constructive, with the results marking BNY's 15th consecutive quarter of year-over-year sales growth and its continued ability to generate positive operating leverage.
What to Watch Going Forward
Management raised its full-year 2026 guidance, now expecting nearly 500 basis points of positive operating leverage, up from about 400 basis points three months earlier. Full-year revenue growth, excluding notable items, is expected to land around the middle of a 12% to 13% range, with net interest income projected to rise 15%. At the same time, BNY increased its expected full-year expense growth to around the middle of a 7% to 8% range.
Investors should monitor several factors in the quarters ahead. The pace of new business wins and client inflows will be critical to sustaining fee growth, particularly in ETF servicing, alternatives, and wealth solutions. Deposit balances and the trajectory of net interest income remain important, since sequential deposit softness and margin compression were notable headwinds in the quarter. Cost management will also stay in focus, given that much of the expense increase stems from revenue-related items and investments in technology and artificial intelligence. Finally, market conditions, currency movements, and AUM flows will influence both revenue and asset balances.
AI Tools in My Research Process
When analyzing results like these, I often rely on Tickeron’s AI Screener to quickly compare BNY against peers on fundamentals, technical patterns, and AI-driven signals. The tool helps surface relevant ideas across the financial sector and keeps me updated on shifting conditions without manual screening. It has become a regular part of how I evaluate names in this space.
Disclaimer
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Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
BNY in downward trend: price dove below 50-day moving average on September 14, 2026
BNY moved below its 50-day moving average on September 14, 2026 date and that indicates a change from an upward trend to a downward trend. In 21 of 33 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 64%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BNY as a result. In 40 of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 43%.
The 10-day moving average for BNY crossed bearishly below the 50-day moving average on September 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 11 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BNY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
The Aroon Indicator for BNY entered a downward trend on October 15, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BNY's RSI Oscillator exited the oversold zone, 16 of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 35 of 43 cases where BNY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 81%.
Following a +0.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where BNY advanced for three days, in 230 of 372 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
BNY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 6 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 37 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating fairly steady price growth. BNY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 90 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: BNY's P/B Ratio (2.523) is slightly higher than the industry average of (1.866). P/E Ratio (17.321) is within average values for comparable stocks, (14.888). Projected Growth (PEG Ratio) (1.122) is also within normal values, averaging (2.139). BNY has a moderately low Dividend Yield (0.015) as compared to the industry average of (0.026). BNY's P/S Ratio (5.118) is slightly higher than the industry average of (3.867).
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