Earnings Call
Jul 22, 2026
Q2 FY2026
EPS Estimate
2.71
EPS Actual
4.23
Post-Earnings Close
$178.66
Earnings Reaction
-3.5%
Northern Trust's second quarter 2026 results were defined by two headline events: participation in the second Visa Class B exchange offer, generating a pre-tax gain of approximately $525 million, and a set of restructuring charges totaling roughly $146 million pre-tax that management used the Visa windfall to absorb. Stripping out these notable items, which in aggregate added approximately $306 million to pre-tax income, the underlying business delivered its strongest organic performance in years. Adjusted EPS rose 40% year-over-year, total revenue grew 13%, and the firm generated over 700 basis points of positive operating leverage on an ex-notable basis. The Visa monetization, as in the prior cycle, is being recycled into capital return, balance sheet repositioning, and optionality for inorganic deployment, with management signaling CET1 of 12.2% will gradually migrate back toward the 11%-12% target range through buybacks.
Report generated on Jul 22, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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