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Northern Trust Q3 2026 Earnings Report
Northern Trust reports 40% EPS growth with 600 bps operating leverage as CFO Dave Fox announces retirement after Q1 2027.
In brief
Northern Trust reports 40% EPS growth with 600 bps operating leverage as CFO Dave Fox announces retirement after Q1 2027. Northern Trust's Q3 2026 earnings per share rose 40% to $3.40 with 600 basis points of operating leverage as CFO Dave Fox plans retirement after Q1 2027. Originally reported by BigGo Finance.
Northern Trust Q3 2026 Earnings
![[Northern Trust Q3 2026 Earnings Call] Northern Trust Posts $3.40 EPS, Up 40%, With 600 Bps Operating Leverage; CFO Dave Fox to Retire After Q1 2027](https://img.biggo.com/SfgzgXl8YWBGDB6ojOBie3j1LhkCft7OfVld3YW6Mt0/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19OVFJTXzIwMjYtMTAtMjFfMTc5MjU5NTk0My53ZWJw.webp)
Northern Trust reported third-quarter 2026 earnings per share of $3.40, up 40% year-over-year, on revenue that rose 11% excluding notable items to $1.4 billion.
Operating Leverage
Expenses grew just 5%, delivering more than 600 basis points of positive operating leverage and a pre-tax margin of 34.9%.
Business Unit Growth
Wealth management fees rose 9% to $612 million, asset servicing fees rose 8% to $762 million, and capital markets revenues jumped 38%.
Assets Under Custody
Assets under custody reached $20 trillion, up 9% year-over-year, while assets under management hit $2 trillion, up 11%.
CFO Retirement Announcement
The call's surprise was CFO Dave Fox's planned retirement after the first quarter of 2027.
CFO's Statement
Fox said he was brought in to put the financial model on solid footing and that the job is now done.
CEO's Response
CEO Mike O'Grady said the search for a successor will consider both internal and external candidates.
Financial Metrics
Revenue (ex. notable items) $1.4B +11% YoY, Net income $642.9M, EPS $3.40 +40% YoY, Pre-tax margin 34.9%.
Share Repurchase
Northern Trust announced a new $3.5 billion share repurchase authorization.
AI Efficiency Gains
O'Grady described AI as a 'durable force multiplier' with client action plan agents saving two to three hours per client memo.
UBS Expansion
Northern Trust expanded its fund administration relationship with UBS, increasing assets serviced by more than 50%.
Q4 Guidance
Management guided fourth-quarter revenue growth of 6%-7% and NII growth of 8%-9%.
Operating Leverage Outlook
Management expects 500 basis points or more of full-year operating leverage.
CFO's Final Note
Fox warned sustaining extremely high operating leverage will be harder in the fourth quarter but expressed confidence in continued positive leverage.
What it means
Northern Trust's Q3 2026 earnings per share rose 40% to $3.40 with 600 basis points of operating leverage as CFO Dave Fox plans retirement after Q1 2027.
