STT

State Street Corp

2026-01-16 08:15 PM

-5.10%

State Street Falls Despite Q4 Earnings Beat on Cautious 2026 Outlook and Job Cuts

State Street reported Q4 EPS of $2.97, beating the $2.78 forecast, with 7% revenue growth and record AUM of $5.67 trillion. However, according to Investing.com and multiple sources, shares dropped sharply due to a cautious 2026 outlook provided during the earnings call. The company also announced $111 million in job cuts as it restructures operations around its new blockchain infrastructure platform.

Analysis

This is a classic 'beat and retreat' scenario where strong backward-looking results are overshadowed by forward guidance concerns. The combination of workforce reductions and cautious outlook signals management sees headwinds ahead despite record assets. This continues the pattern from earlier today when STT initially dropped on the same earnings news, suggesting the market is digesting the guidance disappointment.

Sources

Date: 2026-01-16

Price: $129.29

Type: Stock Specific

Confidence: high