BNY · Q2 FY2026
Bank of New York Mellon Corp Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $5.698B | $5.028B (yr ago) | Beat |
| EPS | $2.45 diluted | $1.93 diluted (yr ago) | Beat |
| Free Cash Flow | Not meaningful for a bank | Not meaningful for a bank | Miss |
| Gross Margin | Not meaningful for a bank | Not meaningful for a bank | Miss |
| Operating Margin | 39.8% pre-tax margin | 36.6% pre-tax margin (yr ago) | Beat |
What changed
Revenue rose 13.3% year over year to $5.698 billion, while diluted EPS increased 26.9% to $2.45. Revenue growth exceeded expense growth, lifting the pre-tax margin by 3.2 percentage points to 39.8%, while assets under custody and/or administration increased 12.2% to $62.6 trillion.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We establish a $150 base-case fair value: the quarter strengthens the operating thesis, but the current price of $162.59 already discounts continued earnings growth and margin durability.