-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
STT delivered strong Q1 2026 results with adjusted EPS of $2.84, beating consensus of $2.64, and total revenue of $3.80B (+16% Y/Y) driven by broad-based fee growth. The company achieved ROE of 11.6% and ROTCE of 17.6%, with record AUC/A of $54.5T (+17%) and AUM of $5.6T (+20%), while maintaining cost discipline with 86 basis points of operating leverage. We view STT's improved cost controls and strategic partnerships positively as key growth drivers supporting the investment thesis. Management maintained 2026 guidance for fee revenue growth of 4%-6%, single-digit NII growth, and expense increases of only 3%-4%, targeting 100 basis points of operating leverage. We believe STT is well positioned with its strong market position in asset servicing and management, and ability to manage costs amid moderating NII growth ahead. The company returned $633M to shareholders through $400M repurchases and $233M dividends, with a CET1 ratio of 10.6% providing adequate capital flexibility for continued growth.