STTHIGH SIGNALFINANCIAL10-K

State Street experienced a massive 316% surge in interest expense to $6.4B while achieving strong operational improvements including positive operating cash flow of $11.9B and substantial AUC/A growth.

The dramatic increase in interest expense from $1.5B to $6.4B represents a material headwind that could significantly compress net interest margins and overall profitability. However, the company demonstrated strong operational performance with substantial growth in assets under custody/administration to $53.80 trillion and a remarkable turnaround in operating cash flow from negative $13.2B to positive $11.9B, suggesting underlying business momentum remains robust despite the interest rate pressures.

Comparing 2026-02-19 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

State Street's financial profile shows a tale of two narratives - while interest expense exploded 316% to $6.4B creating significant margin pressure, the company achieved strong operational improvements including a dramatic $25.1B positive swing in operating cash flow and released $33M in credit loss provisions. The 15% increase in total debt to $11.5B partially explains the higher interest costs, but the magnitude suggests broader interest rate environment impacts, while the underlying business showed strength with growing assets under management and custody indicating continued client franchise momentum.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+315.9%
$1.5B→$6.4B

Interest expense surged 315.9% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
+190.1%
-$13.2B→$11.9B

Operating cash flow surged 190.1% — exceptional cash generation, highest quality earnings signal.

Provision for Credit Losses
P&L
-137.5%
$88.0M→-$33.0M

Provisions reduced 137.5% — improving credit quality or reserve release boosting reported earnings.

Total Debt
Balance Sheet
+14.9%
$10.0B→$11.5B

Debt rose 14.9% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-13
ADDED
Financial Market Risks We could be adversely affected by political, geopolitical, economic and market conditions including, for example, as a result of liquidity or capital deficiencies (actual or perceived) by other financial institutions and related market and government actions, changes in U.S.
trade or other policies or those policies of other nations, the ongoing conflicts in Ukraine and in the Middle East, major political shifts domestically or internationally, (including the potential for retaliatory actions by governments, market participants or clients based on diverging perspectives or otherwise and, separately, the recent shutdown of the U.S.
federal government), actions taken by central banks in an attempt to address prevailing economic conditions, changes in monetary policy or periods of significant volatility in the markets for equity, fixed income and other asset classes globally or within specific markets; Our investment securities portfolio, consolidated financial condition and consolidated results of operations could be adversely affected by changes in the financial markets, governmental action or monetary policy.
Through our subsidiaries, including our principal banking subsidiary, State Street Bank and Trust Company, referred to as State Street Bank, we operate in more than 100 geographic markets worldwide, providing a broad range of financial products and services to institutional investors globally.
As of December 31, 2025, we reported $53.80 trillion in AUC/A and $5.67 trillion in AUM.
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REMOVED
Through our subsidiaries, including our principal banking subsidiary, State Street Bank and Trust Company, referred to as State Street Bank, we operate in more than 100 geographic markets worldwide, including the United States, Canada, Latin America, Europe, the Middle East and Asia.
We provide a broad range of financial products and services to institutional investors globally, with $46.56 trillion of AUC/A and $4.72 trillion of AUM as of December 31, 2024.
We had consolidated total assets of $353.24 billion, consolidated total deposits of $261.92 billion, consolidated total shareholders equity of $25.33 billion and approximately 53,000 employees as of December 31, 2024.
The Parent Company is a source of financial and managerial strength to our subsidiaries.
These additional disclosures are accessible on the Filings reports tab of our website at investors.statestreet.com .
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