Northern Trust (NASDAQ:NTRS) Releases Quarterly Earnings Results, Beats Estimates By $0.34 EPS

Northern Trust (NASDAQ:NTRS) released its quarterly earnings results on Tuesday. The asset manager reported $2.71 EPS for the quarter, topping the consensus estimate of $2.37 by $0.34, FiscalAI reports. Northern Trust had a return on equity of 14.87% and a net margin of 12.15%.The business had revenue of $2.21 billion during the quarter, compared to analyst estimates of $2.13 billion. During the same period last year, the business posted $1.90 earnings per share. The company’s quarterly revenue was up 13.8% on a year-over-year basis.

Here are the key takeaways from Northern Trust’s conference call:

• Northern reported a strong Q1 — revenue +14% YoY, trust fees +11%, NII +15%, EPS +43%, pre‑tax margin 32% and ROE 17.4%, and returned $510M to shareholders (100% payout) including $359M of buybacks that reduced share count ~5% YoY.
• Management is accelerating AI across the firm with a three‑pronged strategy (hyper‑personalization, AI‑generated alpha, infinite scalability) and examples like the One Wealth Assistant and AI‑assisted research aimed at boosting efficiency and investment outcomes.
• Wealth Management is being scaled — targeting high‑single‑digit growth in revenue‑generating roles, centers‑of‑influence outreach, digital opportunities up ~50% YoY, and a goal to increase alternatives fundraising ~25% to broaden product offerings.
• Asset Servicing and NTAM showed momentum — asset servicing AUC $17.3T (+9% YoY) with fees +10% and a 740 bps pre‑tax margin expansion, alternatives AUA nearing $1T, plus positive liquidity flows and new ETF/tokenized product launches at NTAM.
• Guidance and balance‑sheet notes — full‑year NII guide was raised to mid‑to‑high single‑digit growth and the firm expects >100 bps operating leverage and ≥100% earnings return, but NIM fell to 1.75% sequentially, CET1 eased to 12%, AFS unrealized losses were $446M, and some large deposits recorded in Q1 may be transient.

Northern Trust Trading Up 8.0%

NASDAQ:NTRS opened at $171.74 on Wednesday. The firm has a market cap of $31.83 billion, a PE ratio of 19.65, a price-to-earnings-growth ratio of 1.24 and a beta of 1.23. The stock has a fifty day moving average price of $144.44 and a 200 day moving average price of $139.21. Northern Trust has a 12-month low of $88.25 and a 12-month high of $173.19. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.57.

Northern Trust Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 5th will be issued a $0.80 dividend. The ex-dividend date is Friday, June 5th. This represents a $3.20 dividend on an annualized basis and a yield of 1.9%. Northern Trust’s dividend payout ratio (DPR) is 36.61%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on NTRS shares. Wall Street Zen upgraded Northern Trust from a “sell” rating to a “hold” rating in a research report on Saturday, December 27th. The Goldman Sachs Group upgraded Northern Trust from a “sell” rating to a “neutral” rating and raised their price target for the stock from $148.00 to $151.00 in a research report on Monday, April 6th. Citigroup started coverage on Northern Trust in a research report on Monday, February 23rd. They set a “neutral” rating for the company. Evercore raised their price target on Northern Trust from $142.00 to $155.00 and gave the stock an “in-line” rating in a research report on Friday, January 23rd. Finally, Barclays raised their price target on Northern Trust from $136.00 to $160.00 and gave the stock an “equal weight” rating in a research report on Monday, January 5th. Four analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $154.55.

Insider Transactions at Northern Trust

In related news, Director Richard Petrino bought 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average cost of $148.91 per share, for a total transaction of $148,910.00. Following the completion of the acquisition, the director owned 3,332 shares in the company, valued at approximately $496,168.12. This trade represents a 42.88% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Clive Bellows sold 1,148 shares of the firm’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $145.26, for a total value of $166,758.48. Following the completion of the sale, the insider owned 34,133 shares in the company, valued at approximately $4,958,159.58. This represents a 3.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 34,905 shares of company stock valued at $5,166,714 in the last 90 days. Insiders own 0.66% of the company’s stock.

Institutional Trading of Northern Trust

Hedge funds and other institutional investors have recently bought and sold shares of the business. Triumph Capital Management acquired a new stake in Northern Trust in the third quarter valued at $25,000. DV Equities LLC acquired a new stake in Northern Trust in the fourth quarter valued at $36,000. Transamerica Financial Advisors LLC raised its stake in Northern Trust by 54.1% in the fourth quarter. Transamerica Financial Advisors LLC now owns 265 shares of the asset manager’s stock valued at $36,000 after buying an additional 93 shares in the last quarter. Zions Bancorporation National Association UT raised its stake in Northern Trust by 179.2% in the fourth quarter. Zions Bancorporation National Association UT now owns 268 shares of the asset manager’s stock valued at $37,000 after buying an additional 172 shares in the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new stake in Northern Trust in the fourth quarter valued at $57,000. 83.19% of the stock is currently owned by institutional investors and hedge funds.

Northern Trust News Roundup

Here are the key news stories impacting Northern Trust this week:

• Positive Sentiment: Q1 results beat consensus: diluted EPS $2.71 vs. $2.37 est., net income $525.5M, revenue $2.213B (up ~14% YoY). The beat on EPS and revenue is the primary catalyst for the rally. Business Wire: Q1 2026 Financial Results
• Positive Sentiment: Operating leverage and capital return highlighted: management cited ~700 bps of positive operating leverage, ~32% pre‑tax margin (FTE), $358.9M in buybacks and $150.8M in dividends (100% payout ratio this quarter) — supportive for EPS and investor sentiment. QuiverQuant: Q1 analysis and capital return
• Positive Sentiment: Dividend declared: quarterly dividend of $0.80 per share (annualized yield ~1.9%), record date June 5, payable July 1 — provides steady yield and complements buybacks. (Company announcement)
• Neutral Sentiment: Investor materials and call transcripts available for deeper read on drivers and outlook; analysts and investors are parsing details on AUM/AUC growth and fee mix. Seeking Alpha: Q1 2026 Earnings Call Transcript Yahoo Finance: Q1 Transcript
• Neutral Sentiment: Analyst coverage and price targets vary (median target referenced ~$157); investors should weigh current valuation versus growth/ROE trajectory. QuiverQuant: analyst targets summary
• Negative Sentiment: Rising expenses noted by some outlets — higher operating costs could pressure margin expansion if not offset by continued revenue/fee growth. Zacks: Q1 margin/expense commentary
• Negative Sentiment: Notable insider and institutional selling activity reported in recent quarters (large position reductions by some institutions), which could add selling pressure despite the strong quarter. QuiverQuant: insider & institutional activity

Northern Trust Company Profile

Northern Trust Corporation (NASDAQ: NTRS) is a global financial services firm headquartered in Chicago that provides asset servicing, asset management and wealth management solutions to institutions, corporations and high-net-worth individuals. The company’s core businesses include custody and fund administration, investment operations outsourcing, trust and fiduciary services, private banking, and retirement and defined contribution plan services.

Northern Trust’s product and service offerings span custody and fund accounting, portfolio and performance analytics, securities lending, cash management and foreign exchange, as well as discretionary and non-discretionary investment management.