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Earnings analysis · 10-Q

NTRS earnings analysis

Filed April 30, 2026 · Our reading of the company's report

The latest report

Northern Trust's Q1 2026 performance showed a diluted EPS of $2.71, exceeding the consensus estimate of $2.35 by $0.36, while reporting revenue of $2.21B, slightly below the expected $2.22B. Management raised…

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Northern Trust's Q1 2026 performance showed a diluted EPS of $2.71, exceeding the consensus estimate of $2.35 by $0.36, while reporting revenue of $2.21B, slightly below the expected $2.22B. Management raised medium-term targets, significantly improving their margin and ROE forecasts, though revenue showed a slight year-over-year decline.

Read the original on SEC.gov

Reported figures

Earnings per share
$2.71
Gross margin
55.2%

What stood out

  • EPS Beat Expectations

    Reported EPS of $2.71 surpassed estimates by $0.36 (+15.3%).

  • Improved Medium-Term Targets

    Management raised pre-tax margin target to 33% (from >30%) and increased ROE target to mid-teens (from 13-15%).

  • Cost Management Focus

    Management indicated ongoing efforts to control expenses despite current revenue pressures.

  • Stable Gross Margin

    Gross margin remains strong at 55.2%, reflecting solid profitability amidst revenue fluctuations.

  • Active Stock Repurchase Program

    Company repurchased 2,037 thousand shares at an average price of $144.27 during Q1 2026.

  • Increase in Free Cash Flow

    Reported free cash flow of $2.74B for Q1 2025 indicates strong cash generation capabilities.

What to watch

  • Severance Charge

    Potential impact on profitability due to anticipated severance charges as the company restructures.

  • Expense Management Challenges

    Risks from controlling larger-than-expected expenses amid revenue fluctuations.

  • Increased Competition

    Heightened competition in financial services may affect margins and market share.

Management's outlook

Management has provided updated medium-term financial targets but no explicit near-term guidance.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.