Northern Trust's first quarter 2026 EPS of $2.71 beat by 14%, driven by strong fee and interest income growth.

Northern Trust reported first quarter 2026 revenue of $2.21 billion and EPS of $2.71, surpassing analyst expectations. The results were driven by double-digit growth in both trust fees and net interest income, alongside effective expense management which expanded the pre-tax margin.

Key Highlights

• Net Interest Income (FTE) grew 15% year-over-year to $661.6 million, beating expectations as higher average earning assets and favorable deposit growth offset pressure from funding costs.
• Trust, Investment and Other Servicing Fees increased 11% year-over-year to $1.34 billion, reflecting a 10% rise in Assets under Custody/Administration to $18.6 trillion and an 11% increase in Assets under Management to $1.8 trillion.
• The company demonstrated significant operating leverage, with total revenue growing 14% while noninterest expenses rose only 6%, leading to a 490 basis point expansion in the pre-tax margin to 32.0%.