The strong beat and raised dividend, combined with 4Q26 guidance for 8-9% NII growth and 6-7% revenue growth, confirm the positive trajectory. Monitor the 10-Q filing for any credit quality deterioration or deposit cost pressure. The stock may re-rate higher as the market prices in the sustained operating leverage and capital return.
Price Chart
Executive Summary
Northern Trust reported Q3 2026 diluted EPS of $3.40 on net income of $642.9M, a 48% YoY increase from $2.29, driven by 13% revenue growth (FTE) and disciplined expense management. The company provided 4Q26 guidance for 8-9% net interest income growth and 6-7% total revenue growth vs 4Q25, with positive operating leverage exceeding 500 bps, signaling continued momentum into year-end.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS of $3.40, up 48% YoY from $2.29
- Net income of $642.9M, up 40% YoY from $457.6M
- Total revenue (FTE) of $2,302.1M, up 13% YoY
- Trust, investment and other servicing fees of $1,373.0M, up 8% YoY
- Net interest income (FTE) of $679.1M, up 14% YoY
- Net interest margin (FTE) expanded 13 bps YoY to 1.83%
- Noninterest expense of $1,492.5M, up only 5% YoY, generating >600 bps of positive operating leverage
- Return on average common equity of 22.0% vs 14.8% YoY
- Quarterly cash dividend increased 10% to $0.88/share from $0.80
- 4Q26 guidance: NII growth 8-9%, total revenue growth 6-7% vs 4Q25
- Full year 2026 guidance: positive operating leverage >500 bps
Financial Impact
EPS beat consensus by approximately 6.2% vs $3.04 estimate; revenue of $3.23 vs $3.29
Risk Factors
- Credit quality deterioration from one CI loan charge-off ($11.0M net charge-off)
- Deposit competition pressuring NIM if rate cuts accelerate
- Market volatility impacting FX and securities lending income
- Potential for higher expenses from AI investments
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000073124-26-000063 |
| Document: q32026trendreport_ex993.htm | 0000073124-26-000063 |
| Document: ntrs-20261021.htm | 0000073124-26-000063 |
| Document: q32026presentationmateri.htm | 0000073124-26-000063 |
| Document: 0000073124-26-000063-index-headers.html | 0000073124-26-000063 |
| Document: 0000073124-26-000063-index.html | 0000073124-26-000063 |
| Document: 0000073124-26-000063.txt | 0000073124-26-000063 |
| 8-K Data (Synthetic) | 0000073124-26-000063 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 144 | $169.55 $170.35 | ▲ +0.47% | ▼ −0.09% | $170.35 (+0.47%) |
Oct 21, 2026 6d ago | 8-K | $166.91 $165.82 | ▼ −0.65% | ▲ +0.53% | $170.35 (+2.06%) |
Oct 20, 2026 7d ago | 8-K | $166.91 $165.82 | ▼ −0.65% | ▲ +0.53% | $170.35 (+2.06%) |
Aug 13, 2026 10w ago | 13F-HR | $190.48 $191.41 | ▲ +0.49% | ▲ +0.69% | $170.35 (−10.57%) |
Jul 22, 2026 13w ago | 8-K | $178.66 $177.95 | ▼ −0.40% | ▲ +0.84% | $170.35 (−4.65%) |
Apr 24, 2026 26w ago | Insider Cluster | $164.01 $167.81 | ▲ +2.32% | ▲ +2.15% | $170.35 (+3.87%) |
Mar 11, 2026 32w ago | DEFA14A | $137.30 $136.92 | ▼ −0.28% | ▲ +0.32% | $170.35 (+24.07%) |
US Market Status
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