State Street Corporation (STT) shares plummeted 5.06% in pre-market trading following the release of its fourth-quarter 2025 financial results. The custody bank and asset manager reported earnings of $2.42 per share, falling short of the FactSet consensus estimate of $2.89.
While total revenue rose 7.5% year-over-year to $3.67 billion, beating expectations, net income declined to $747 million from $783 million in the prior-year period. The company attributed the profit drop to a 12% increase in expenses, which reached $2.74 billion, including $206 million in notable items. Excluding these items, expenses still rose 6% due to business investments and compensation costs.
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