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Financial services company Northern Trust (NASDAQ:NTRS) reported Q2 CY2026 results , with sales up 35.1% year on year to $2.71 billion. Its GAAP profit of $4.23 per share was 8.4% below analysts’ consensus estimates.
Is now the time to buy Northern Trust? Find out by accessing our full research report, it’s free.
Northern Trust (NTRS) Q2 CY2026 Highlights:
・Assets Under Management: $1.97 trillion vs analyst estimates of $1.81 trillion (16% year-on-year growth, 8.9% beat)
・Revenue: $2.71 billion vs analyst estimates of $2.20 billion (35.1% year-on-year growth, 23.1% beat)
・Pre-tax Profit: $1.06 billion (39.4% margin)
・EPS (GAAP): $4.23 vs analyst expectations of $4.62 (8.4% miss)
・Market Capitalization: $34.24 billion
Company Overview
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ:NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Northern Trust’s 8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average financials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Northern Trust’s annualized revenue growth of 12.6% over the last two years is above its five-year trend, suggesting its demand recently accelerated.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Northern Trust reported wonderful year-on-year revenue growth of 35.1%, and its $2.71 billion of revenue exceeded Wall Street’s estimates by 23.1%.
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Assets Under Management (AUM)
Assets Under Management (AUM) is the total capital a firm oversees or manages on behalf of clients. Fees on this AUM, typically a small percentage, are contractually recurring and provide a high level of stability to revenue even if investment performance lags (although too much poor investment performance eventually hurts fundraising ability).
Northern Trust’s AUM has grown at an annual rate of 5.1% over the last five years, worse than the broader financials industry and slower than its total revenue. When analyzing Northern Trust’s AUM over the last two years, we can see that growth accelerated to 12.5% annually. This performance aligned with its total revenue.
Northern Trust’s AUM punched in at $1.97 trillion this quarter, beating analysts’ expectations by 8.9%. This print was 16% higher than the same quarter last year.
Key Takeaways from Northern Trust’s Q2 Results
We were impressed that Northern Trust beat analysts’ revenue expectations this quarter. We were also excited its AUM outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this quarter was mixed. The stock remained flat at $185.87 immediately following the results.
Indeed, Northern Trust had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
