NTRS earnings analysis
What we found in NTRS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.71
- Gross margin
- 55.2%
What they said about what is next.
Management has provided updated medium-term financial targets but no explicit near-term guidance.
The filing reads better than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing NTRS makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
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