GET DAILY SIGNALSBNY Mellon (BK) Delivers Strong Q2 2026 Results with Revenue Up +13%
Key Takeaways
- BNY reported record total revenue of $5.7 billion for the second quarter of 2026, up 13% year-over-year.
- Diluted earnings per share reached $2.45, a 27% increase from the prior year.
- Pre-tax operating margin expanded to 39.8%, with return on tangible common equity (ROTCE) at 31.3%.
- Fee revenue grew 11% to $4.0 billion, while net interest income rose 20% to $1.4 billion.
- Assets under custody and/or administration (AUC/A) increased 12% to $62.6 trillion.
- The company returned $1.5 billion in capital to shareholders through dividends and share repurchases.
Why These Results Matter
The second quarter 2026 results highlight BNY’s position as a key player in global capital markets. Strong client activity, higher market values, and strategic investments drove broad-based growth across segments. The earnings report provides investors with insights into fee-based revenue trends, net interest income dynamics, and capital return policies amid evolving interest rate and market conditions. These factors influence valuations for financial services firms focused on custody, asset servicing, and wealth management.
Breaking Down the Reported Figures
BNY reported total revenue of $5.698 billion for the second quarter of 2026, up 13% from $5.028 billion in the second quarter of 2025 and 5% sequentially. Diluted EPS of $2.45 exceeded the prior year’s $1.93 by 27%. Net income applicable to common shareholders rose 22% to $1.696 billion. Fee revenue increased 11% to $4.036 billion, supported by net new business and client activity. Net interest income grew 20% to $1.446 billion due to higher yields on securities and balance sheet expansion. Noninterest expense rose 7% to $3.439 billion, reflecting investments and revenue-related costs but delivering positive operating leverage. Pre-tax operating margin improved to 39.8% from 36.6% a year ago. AUC/A reached $62.6 trillion, up 12%, while assets under management (AUM) grew 6% to $2.2 trillion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
Shares of BNY reacted positively to the results, reflecting investor approval of the revenue beat and margin expansion. Analysts noted the strong year-over-year growth in both fee income and net interest income as key drivers of the favorable response. The report reinforced confidence in BNY’s ability to generate organic growth and maintain disciplined expense management.
Leveraging AI Tools in My Research
As part of my ongoing analysis of financial names like BK, I turned to Tickeron’s AI Screener to filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. This helped me scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It supports identifying trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening.
Forward Outlook and Key Factors to Monitor
Investors will focus on BNY’s continued momentum in client inflows and market-driven revenue. Growth in AUC/A and AUM provides visibility into future fee income, while net interest income trends depend on interest rate paths and deposit dynamics.
Expense discipline remains important as the firm balances investments in technology and talent with efficiency initiatives. Capital return programs, including share repurchases and dividends, will continue to support shareholder value.
Broader industry conditions such as equity market performance, foreign exchange volumes, and regulatory developments in securities services could influence results. Management commentary on third-quarter trends and any updates to full-year expectations will offer additional guidance for modeling future performance.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsContributor
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.
Momentum Indicator for BNY turns positive, indicating new upward trend
BNY saw its Momentum Indicator move above the 0 level on October 20, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned positive. In 61 of the 93 cases, the stock moved higher in the following days. The odds of a move higher are at 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for BNY just turned positive on October 16, 2026. Looking at past instances where BNY's MACD turned positive, the stock continued to rise in 29 of 50 cases over the following month. The odds of a continued upward trend are 58%.
BNY moved above its 50-day moving average on November 09, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BNY crossed bullishly above the 50-day moving average on November 11, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 64%.
Following a +2.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where BNY advanced for three days, in 223 of 369 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
Bearish Trend Analysis
The 10-day RSI Indicator for BNY moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In 20 of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at 41%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 35 of 71 cases where BNY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 49%.
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 50%.
BNY broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BNY entered a downward trend on October 26, 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.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 4 (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 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 Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. BNY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 46 (best 1 - 100 worst), pointing to consistent 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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued 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 (2.511) is slightly higher than the industry average of (1.500). BNY has a moderately high P/E Ratio (17.058) as compared to the industry average of (11.703). Projected Growth (PEG Ratio) (1.122) is also within normal values, averaging (2.139). Dividend Yield (0.017) settles around the average of (0.035) among similar stocks. BNY's P/S Ratio (5.118) is slightly higher than the industry average of (3.867).
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