BNY (BNY) Earnings & Analysis

Latest quarter

BNY’s revenue and adjusted earnings both exceeded consensus in Q3 FY2026. For the consensus comparison, revenue as counted by the consensus was $5.7 billion against an estimate of $5.6 billion. Adjusted earnings per share were $2.37, compared with the $2.26 estimate.

BNY reported quarterly revenue of $10.0 billion, compared with $10.4 billion a year earlier. Diluted earnings per share rose to $2.46 from $1.88. The company’s gross margin was 57.0%, compared with 48.7% a year earlier, while its operating margin was 22.0%, compared with 17.7%.

As of September 30, BNY said it oversaw $63.4 trillion in assets under custody and/or administration and $2.2 trillion in assets under management. In the preceding quarter, Q2 FY2026, BNY reported free cash flow of $2.0 billion, compared with $1.8 billion in Q2 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On BNY’s Q2 earnings call, CEO Robin Vince said the company’s commercial model was helping it develop broader client relationships, larger mandates and integrated solutions. He said the average deal size was up by more than 20% year over year and approximately 10% of deals were with clients entirely new to BNY.

CFO Dermot McDonogh said Q2 investment-services fee growth reflected net new business, higher client activity and higher market values. He attributed the increase in net interest income primarily to reinvestment of securities at higher yields and balance-sheet growth, partly offset by deposit-margin compression.

Asked about pricing, McDonogh said pressure existed across competitive markets, but clients were willing to pay for differentiated service. He said BNY had reduced its cost to serve and saw less pricing pressure than it had several years earlier. Vince added that clients were seeking combinations of services across the company’s platforms.

Vince said BNY had completed its transition to a platform operating model in Q2 and was shifting its focus to realizing benefits over several years. He also described investment in artificial intelligence, saying it could create capacity by improving workflows and could help BNY develop products and serve clients in new ways. Asked about the economics of AI, Vince said BNY did not break out specific economic numbers.

On digital assets, Vince said the transition toward an always-on financial system would take time and that newer capabilities would coexist with traditional ones. Looking ahead from Q2, McDonogh said Q3 was seasonally the slowest quarter and that the year-earlier comparison for net interest income would be difficult because of unusual events in that period.

Guidance

On the Q2 call, McDonogh raised BNY’s 2026 revenue outlook excluding notable items to growth of 10% to 11% year over year, subject to market conditions. He said the outlook assumed current market-implied forward interest rates and a broadly constructive operating environment, with seasonal patterns in client activity.

McDonogh also said BNY had stopped providing a share-repurchase guide in the prior year, describing capital return as an output of its decisions rather than an input.