Northern Trust Corporation (NTRS) Earnings Call Transcripts

Northern Trust Corporation's Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, Northern Trust Corporation reported a significant increase in earnings and revenue, with net income reaching $792.2 million and earnings per share (EPS) of $4.23, marking a 40% year-over-year increase. Total revenue rose 13% to $2.8 billion, driven by strong growth in trust fees, net interest income, and capital markets revenues. Management raised guidance for full-year net interest income and total revenue growth to 9%-10%, up from previous estimates of mid-single digits, indicating strong operational momentum and market positioning.

Reported metrics

Guidance from management

Management now expects net interest income and total revenue to grow by 9%-10% year-over-year, an increase from previous guidance of mid-single digits. They anticipate delivering approximately 400 basis points of operating leverage for the full year.

What management said

I think, Brennan, the pretax margin you quoted actually includes the notables. So if you take those -- the notable items out, the pretax margin is much higher, closer to 30%. So we continue to see, given what's going on in the capital markets side of the business, too, which is growing double digits, the asset servicing margins are continuing to go up. So we just need to take that notable item and put it to the side.

So as you heard from my discussion of the strategy there, we are definitely investing in the wealth business for growth. And it right now has an attractive pretax margin to it. And so really, I believe we're like in the right range for that business, meaning that it can go up a little bit depending on the conditions, but it also can go down. as a result of the investments we're making. And so bracket it by a few 100 ...

What analysts pressed on

Analysts expressed concerns about the sustainability of recent deposit inflows and potential normalization in revenue growth due to tougher year-over-year comparisons in the second half of 2026. There were questions regarding the impact of large institutional deposits and how they would affect future net interest income.

Main topics on the call

• Revenue Growth Acceleration — Total revenue increased 13% year-over-year, driven by a 10% rise in trust fees and an impressive 69% growth in capital markets revenues. Management noted, "We delivered an eighth consecutive quarter of positive organic f...
• Increased Shareholder Returns — Northern Trust returned nearly $500 million to shareholders in Q2 2026, with a year-to-date payout ratio of 95%. Management stated, "We returned almost $500 million to shareholders during the quarter," demonstrating a co...
• Wealth Management Performance — Wealth Management saw trust fees increase by 10% year-over-year, with assets under management up 14%. Management emphasized, "We continue to see clear proof points and are demonstrating our ability to perform consistentl...
• Operational Leverage — The company achieved over 700 basis points of positive operating leverage, reflecting disciplined expense management alongside revenue growth. Management noted, "Strong revenue growth combined with expense discipline dro...

Read the full Northern Trust Corporation transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 55 Northern Trust Corporation earnings call transcripts on record, spanning January 22, 2020 to July 22, 2026. Based on this history, Northern Trust Corporation reports quarterly. The most recent call on file is dated July 22, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

NTRS

Exchange

NasdaqGS

Country

US

Sector

Financials

Industry

Capital Markets

Calls on record

55

First call

January 22, 2020

Most recent

July 22, 2026

Reporting cadence

quarterly