State Street Corporation

Good morning and welcome to State Street Corporation's second quarter 2026 earnings conference call and webcast. Today's call will be hosted by Elizabeth Lynn, head of investor relations at State Street. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Today's discussion is being broadcast live on State Street's website at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in part or in whole without the express written authorization from State Street Corporation. The only authorized broadcast of this call will be on the State Street website. Now, I would like to hand the call over to Elizabeth Lynn.

Good morning and thank you all for joining us. On today's call, our CEO, Ron O'Hanley, and our CFO, John Woods, We'll review our second quarter 2026 results and provide an update on our medium-term financial outlook. Both are included in our earnings presentation, which is available in the investor relations section of our website at investors.statestreet.com. Following prepared remarks, we will be happy to take your questions. Before we get started, I'd like to remind you that today's presentation will include results presented on a basis that excludes or adjusts one or more items from GAAP. Reconciliations of these non-GAAP measures to the most directly comparable GAAP or regulatory measure are available in the earnings release addendum. In addition, today's call will contain forward-looking statements. Actual results may differ materially from those statements due to a variety of important factors, such as those referenced in our discussion today and in our SEC filings, including the risk factor section in our Form 10-K. Our forward-looking statements speak only as of today, and we disclaim any obligation to update them, even if our views should change. With that, let me turn it over to Ron.

Thank you, Liz. Good morning, everyone, and thank you for joining us. Today, we'll focus on two key topics. First, we'll review our strong second quarter performance, the momentum we continue to build across the franchise, and our improving outlook for 2026. We'll then discuss our new medium-term financial targets, which we released this morning. We are excited to outline the strategic pillars that will drive this next phase of State Street's growth, the significant opportunities we see to further strengthen our compelling value proposition and competitive position, and the actions we are taking to further transform our operating model. Together, these initiatives reinforce our confidence in our ability to deliver sustained growth, expand margins and returns, and create long-term value for our clients and shareholders. But first, let me begin with our second quarter highlights on slide three. We delivered a strong set of financial results in the second quarter, driven by disciplined execution, deep client engagement and continued momentum across our businesses. These results reflect the strength of our platform and position us well for continued progress as we look ahead. Second quarter EPS was 365, up from 217 and 225. Excluding prior year notable items, we delivered significant earnings growth of 44% year-over-year, driven by record quarterly fee revenue, including record servicing, management, and FX trading revenues, together with record NII, driving total quarterly revenue up 17% year-over-year to an all-time high. This performance drove continued margin expansion and stronger returns. Taking a step back, this quarter's results reinforced the durability of our franchise and the sustained progress in our financial performance. 2Q marks our 10th consecutive quarter of positive operating leverage, excluding notable items, reflecting disciplined execution and the momentum we're building across the business. In addition to our strong 2Q financial results, we also meaningfully advanced our strategic agenda in the second quarter, further strengthening our franchises and positioning us for continued growth. Within investment services, innovation continues to be a key driver of future growth. For example, our digital asset platform is always on financial infrastructure that will enable clients to rapidly bridge from traditional to digital finance. and we continue to make strong progress in advancing this strategy. In 2Q, we announced our intention to deliver a tokenized fund servicing capability by year end subject to regulatory approval. Following a competitive process, a leading European asset manager selected State Street to serve as tokenized money market funds expected to launch later this year. Importantly, State Street Investment Management is also expected to be an early adopter of this offering, underscoring the strength of our One State Street approach. Our investment management business continued its focus on innovation and product capability to position the franchise for sustained growth, and it demonstrated further evidence of the power of our franchises working together as an integrated One State Street. In 2Q91, a State Street Alpha client, entered into a strategic partnership with State Street Investment Management, paving the way for a suite of active co-branded ETFs. This is a clear example of how we bring the value of our combined firm to clients for our one State Street approach, as well as how we drive innovation within the industry, deploying our extensive expertise and capabilities to identify and create solutions for the world's investors. We also recently announced that SPYAM, Our low-cost S&P 500 ETF has been selected by the U.S. Department of the Treasury as the exclusive default ETF for Trump accounts. These accounts are designed to make investing simple and accessible, giving children a straightforward opportunity to begin early in life as asset owners, benefit from the power of compounding, and stay invested over time to build wealth. We're proud to help Americans through that journey with SPY-M. Turning to State Street Markets, we continue to demonstrate the strength of our integrated liquidity and financing capabilities, driving strong client activity. We experienced record FX trading volumes in revenues in the second quarter, with securities lending also up significantly year over year. Our markets franchise provides industry-leading capabilities to our investment services clients, deepening client relationships while driving revenue diversification and earnings growth. Before I turn the call over to John, let me briefly touch on the strength of our capital position, which was reflected in the Federal Reserve's recent stress test. Following the release of those results, we announced an increase to our quarterly common stock dividend of 10% to $0.92 per share beginning in the third quarter. Dividend growth remains an important component of our capital return, as demonstrated by the double-digit average dividend growth per share growth we've delivered over the In closing, we delivered a strong second quarter, driven by disciplined execution, deep client engagement, and broad-based momentum across the franchise. Our results highlight the strength of our businesses, both individually and as one state street, and the role innovation plays in driving performance today and growth ahead. We are encouraged by our progress and confident in our ability to continue delivering improved performance through the balance of the year and over the medium term, supported by solid financial and strategic momentum. With that, I'll turn it over to John to walk through the quarter in more detail.